Pakistan’s gold market continues to operate on an exceptionally large scale, with annual national demand estimated between 60 and 90 tons. In monetary terms, this translates to a massive value of $8 billion to $12 billion every year. However, what makes this market particularly unique is the fact that more than 90% of all gold transactions in Pakistan take place through informal channels. These insights were highlighted in a recent report released by the Competition Commission of Pakistan (CCP), which examined the structure and functioning of the country’s gold trade.
Gold remains deeply rooted in Pakistan’s cultural and social traditions. Weddings, religious celebrations, family ceremonies, and national festivals all contribute significantly to the steady demand for gold. For many households, gold represents more than just jewelry; it is viewed as a practical investment, a secure store of value, and a symbol of financial stability. This cultural attachment ensures that the demand for gold remains strong throughout the year, regardless of economic conditions.
Since local gold production is extremely limited, Pakistan depends heavily on imported gold to satisfy consumer needs. Once imported, the gold flows into both regulated markets—such as certified jewelry outlets—and unregulated informal markets. These informal marketplaces are preferred by many buyers because they often provide easier access, greater negotiation flexibility, and sometimes lower prices. However, this unregulated flow also makes it difficult for the government to monitor transactions, enforce standards, or collect taxes. Despite these challenges, the informal gold trade continues to dominate the sector, shaping Pakistan’s overall gold economy.
