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Pakistan’s Antitrust Watchdog Urges Overhaul of Opaque Gold Market Ahead of Reko Diq

The study cites a vast gap between demand and recorded imports, pressing for controls before new domestic output reshapes supply.

Overview

  • CCP’s first evidence-based assessment finds roughly 90% of gold trading outside formal channels, with annual consumption estimated at 60–90 tonnes.
  • Official gold imports were reported at only $17 million in FY 2023–24, while the undocumented market is valued at about $8–12 billion a year.
  • Pricing is driven by trader associations rather than transparent market mechanisms, and weak refining, assaying and hallmarking leave consumers exposed to fraud.
  • The Commission proposes a unified Pakistan Gold & Gemstone Authority, a Gold Bank, mandatory nationwide assaying and hallmarking, blockchain-linked traceability tied to FBR’s Track & Trace, and stronger AML/CFT compliance.
  • The report flags the Reko Diq copper‑gold project as a catalyst with up to $74 billion in projected gold output over 37 years and warns that failure to regulate could invite FATF scrutiny and entrench illicit trade.