Pakistan has officially lifted the ban on the import and export of gold after several months of suspension, bringing relief to jewelers, exporters, gold traders, and the entire precious metals industry. The decision comes after the Ministry of Commerce reviewed the earlier restrictions—introduced in May 2025—and concluded that the ban was no longer necessary due to improved monitoring and reduced smuggling activity.

This long-awaited decision is expected to revive gold imports, boost export earnings, support the jewelry industry, and restore confidence among international buyers.

This article provides a detailed breakdown of the policy reversal, its impact on gold rates, benefits for traders, new monitoring rules, and what this move means for Pakistan’s economy.

1. Background – Why Did Pakistan Ban Gold Imports and Exports in May 2025?

In early May 2025, the Government of Pakistan temporarily banned the import and export of gold. The decision was taken due to:

Rising concerns over gold smuggling
Unregulated cross-border movement of gold
Foreign exchange pressures
Complaints about misuse of import schemes
Suspicious transactions in the bullion market

The government wanted to control irregularities, monitor movement, and prevent misuse of trade policies.

However, the ban created serious difficulties for businesses that rely on imported raw gold, especially:

Jewelry manufacturers
Goldsmiths
Gold exporters
Wholesalers
Retail businesses

The suspension also caused delays in export orders, affecting Pakistan’s credibility in the global jewelry market.

2. Pakistan Lifts Ban on Gold Import and Export – Official Notification

According to the latest notification issued by the Ministry of Commerce, the government has:

✔ Withdrawn the earlier restrictions
✔ Restored normal gold trade rules
✔ Re-enabled import and export permissions
✔ Re-opened pending trade channels

Officials stated that during the months-long suspension:

No major smuggling cases were recorded
Exporters suffered significant financial losses
Manufacturers faced production shortages
International buyers shifted orders to other countries

Considering these factors, the government has finally removed the restrictions and reopened the sector.

3. Industry Reaction – Jewelers & Exporters Welcome the Decision

The jewelry sector has strongly welcomed the move. Industry associations said the ban had:

Reduced gold supply
Increased production costs
Caused order cancellations
Affected employment
Disturbed the local bullion market

Many exporters said that Pakistan was losing its share in the global jewelry export market because they were unable to meet deadlines.

Now, with the ban lifted:

Exporters can resume pending orders
Manufacturers can access raw gold
Jewelers can restart full production
Investors can benefit from market stability
Small workshops can rehire skilled workers

This will help revitalize the entire gold value chain.

4. Impact on the Gold Market – What Will Change Now?

Once the ban is lifted, several important changes are expected:

4.1. Improved Gold Supply

The jewelry industry relies heavily on imported raw gold. With imports open again, supply will stabilize.

4.2. Lower Production Costs

During the ban, prices increased due to shortages. Now, production costs may decrease.

4.3. Increase in Gold Exports

Pakistan exports:

Handmade jewelry
Modern designed ornaments
Precious stones

Exporters can now fulfill pending shipments and regain lost markets.

4.4. Boost in Local Gold Market Activity

Gold wholesalers expect higher trading volumes and increased liquidity.

4.5. Stable Prices in Local Bullion Market

Although gold prices depend on the international market, improved supply reduces unnecessary fluctuations.

5. Updated Trade Rules – Government Introduces New Monitoring Framework

Along with lifting the ban, the government has also introduced several measures to ensure transparent and safe gold trade.

New Monitoring Measures Include:

5.1. Improved Tracking System

Authorities will now track gold shipments more closely.

5.2. Digital and Automated Checks

New automated systems will verify shipments and detect irregularities.

5.3. Better Border Surveillance

Enhanced customs coordination will help prevent smuggling.

5.4. Strict Documentation Requirements

Importers and exporters must follow detailed reporting rules to prevent misuse.

5.5. Real-Time Data Monitoring

Digital systems will record each shipment, reducing the chances of illegal trade.

These reforms are designed to make sure that legitimate traders are supported while suspicious activities are controlled.

6. Economic Impact – How Will Lifting the Ban Help Pakistan?

The decision is expected to bring major economic benefits:

6.1. Increased Foreign Exchange Earnings

Gold jewelry exports generate millions in annual revenue. Restarting them will help Pakistan’s foreign exchange reserves.

6.2. Support for Small and Medium Businesses

Thousands of small jewelers and craftsmen will see their businesses revive.

6.3. Boost in Employment

Skilled workers who were laid off during the ban may be rehired.

6.4. Market Stability

Gold plays a significant role in investment portfolios, dowries, weddings, and savings. A stable supply benefits consumers.

6.5. Stronger International Reputation

Fulfilling export orders on time restores trust among global partners.

7. Will Gold Prices in Pakistan Fall After Lifting the Ban?

Gold prices in Pakistan depend on:

International gold rates
USD to PKR exchange rate
Local demand and supply

Lifting the ban will not drastically reduce the price, because global rates remain high. However, it may:

Reduce artificial shortages
Prevent unnecessary price spikes
Increase market liquidity

This will help stabilize prices even if global rates remain volatile.

8. Who Will Benefit the Most After the Ban Lift?

Gold Importers

They can resume buying raw gold for manufacturing.

Jewelry Exporters

Pending export orders can now be completed.

Local Jewelers

More supply means more designs and sales opportunities.

Wedding Season Buyers

Stable supply prevents panic buying and price manipulation.

Skilled Workers

Jewelry workshops can restart full-scale operations.

9. Challenges That Still Remain

Although the ban has been lifted, some challenges remain:

Global gold prices are still high
USD-PKR volatility affects costs
High import duties may increase final prices
Lack of modern gold refineries in Pakistan
Slow international demand recovery

The new monitoring system must remain efficient to prevent misuse.

10. Future Outlook – What’s Next for Pakistan’s Gold Market?

Experts believe that:

The jewelry export sector will grow
International buyers will return
Pakistan may increase its share in global handmade jewelry markets
Digital tracking systems will reduce smuggling
Local investment in gold will increase

If the government maintains transparency and policy stability, the gold sector can become a strong revenue generator for Pakistan.

Conclusion

Pakistan’s decision to lift the ban on the import and export of gold is a major move that will revive the jewelry industry, stabilize the bullion market, support foreign exchange earnings, and boost employment. With new monitoring systems in place, authorities aim to control smuggling without hurting legitimate business activity.

This policy shift is expected to bring long-term benefits for traders, exporters, manufacturers, workers, and consumers across Pakistan.

FAQs – Pakistan Lifts Ban on Gold Import & Export

1. Why did Pakistan ban gold import and export earlier?

Pakistan banned gold import and export to control smuggling, regulate suspicious transactions, and reduce irregularities in the bullion market.

2. When was the ban on gold import and export lifted?

The Ministry of Commerce lifted the ban in November 2025 after reviewing market conditions and concluding that restrictions were no longer needed.

3. Will gold prices decrease after the ban removal?

Gold prices may stabilize due to better supply, but major price drops are unlikely because international gold rates and USD–PKR exchange rates mainly determine local prices.

4. How will lifting the ban help jewelry exporters?

Exporters can now resume pending orders, meet international demand, and restore Pakistan’s credibility in the global jewelry market.

5. What new rules has the government introduced for gold trade?

The government has added strict monitoring, digital verification systems, improved border checks, and detailed documentation requirements to ensure transparency and prevent smuggling.