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Govt constitutes task force to combat gold smuggling, ‘mafia’

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1 year ago

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  • Task force will take decisive measures against illegal activities.
  • It has prepared lists of mafia and smugglers to kick-start action.
  • Govt decides to start work on computerising gold trade.

ISLAMABAD: Intelligence and law enforcement agencies have initiated a major operation to combat gold smuggling and the “gold mafia,” The News reported on Friday.

According to sources, a task force comprising the agencies has been constituted to take decisive measures against illegal activities.

The sources told The News that the objective behind constituting the task force is to nab the smugglers so that legal action could be taken against them.

It was further learnt that the task force had also prepared lists of mafia and smugglers and action against them was in the offing.

Moreover, the government also decided to start work on a war footing to computerise the sale and purchase of gold and bring the gold dealers into the tax net.

“This step will benefit both the people and the country,” the sources said, adding that the gold price was already on the decline.

It may be pointed out here the gold price over the last two weeks has come down from Rs236,000 per tola to Rs214,000 per tola.

Traders stop issuing bullion rates

Meanwhile, The News also reported regarding the closure of Karachi’s bustling gold market for the second consecutive day on Thursday following the crackdown reportedly by the authorities.

The market, one of the largest in Pakistan, did not issue new gold rates as reports emerged of raids and arrests in some sections of the market, a local trader who declined to be named, said.

Traders have also stopped issuing bullion rates for the last two days. The price of 24-carat gold had closed at Rs215,000 per tola (11.66 grams) on Tuesday and since then, the All Pakistan Gems and Jewellers Sarafa Association has not updated the market price.

Onlookers and stakeholders in the industry were also met with silence as no official rates were announced by the All Sindh Saraf Jewellers Association.

Attempts to reach out to market participants for insights on the situation proved futile, with most refusing to comment. However, when pressed about the possible reason behind the market’s closure, one spokesperson cryptically responded, “You know better than us”.

The veil of silence shrouding the gold market appears to be linked to recent law enforcement activities targeting gold smuggling. Reports have emerged of four gold smugglers being apprehended by authorities on Wednesday.

In the wake of these developments, the gold market has largely ceased its usual operations, with many traders switching off their phones and refraining from returning calls.

Speculation is prevalent that the closure of the gold market is related to recent incidents in which gold prices experienced a sharp decline. However, the prices in the local market were raised despite a concurrent decline in the international gold market and the strengthening of the rupee.

Traders said it is suspected that certain market participants may have sought to manipulate gold rates for their own gain. This manoeuvre allegedly led to a staggering increase of Rs5,600 per tola in local gold prices, driving rates to Rs215,000 per tola on Tuesday.

This perplexing price hike stood in stark contrast to the global trend, where gold rates had decreased by $15, settling at $1,911 per ounce on Tuesday.

The sudden fluctuation in gold prices has puzzled industry observers and investors, especially considering that gold rates had dipped to Rs209,400 per tola on Monday, September 11. Just weeks prior, on August 31, gold had reached its second-highest rate of Rs239,800 per tola.

While the gold market often experiences fluctuations, the current situation has raised eyebrows due to its enigmatic nature.

As market regulators and law enforcement agencies investigate the circumstances surrounding the gold market closure and price surge, there is growing hope for greater transparency and accountability in the industry in the near future.

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Dar chairs the CCOP meeting; Blue World’s bid offer of Rs.10 billion is rejected.

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22 hours ago

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The Foreign Minister/Deputy Prime Minister chaired the Cabinet Committee on Privatization meeting.

Other committee members who attended the conference included the Federal Secretaries of several Divisions, the Ministers of Finance and Revenue, Industry and Food, Commerce, Power, and Privatization.

The CCOP took the PC Board’s recommendation into consideration and suggested that Blue World’s bid of 10 billion rupees for the sale of 60% of PIACL’s shares be rejected. The bid was rejected by the CCOP, who chose to follow the PC Board’s advice.

The government’s determination to sell out PIACL through government-to-government or privatization was reaffirmed by the CCOP.

The CCOP was pleased with the Aviation Division’s evaluation of PIACL’s sound financial standing.

Additionally, the CCOP established a committee, chaired by the Minister of State for Finance, to assess potential transaction possibilities for the privatization of the Roosevelt Hotel and the appropriate modes of adoption in light of existing legal rules.

Prior to its subsequent meeting, the CCOP also ordered that all difficulties be resolved and an agreement for the selling of services to an international hotel be concluded.

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The KSE-100 Index has surged by 790 points, resulting in an all-time peak for the stock exchange.

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23 hours ago

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The benchmark KSE-100 Index increased by 790 points, marking a new all-time high for the Pakistan Stock Exchange (PSX) at 94,982 points.

The record-breaking performance underscores a surge of optimism and investor confidence in the stock market.

As investors responded to favorable economic signals, the market experienced a significant increase of over 500 points in early trading. Later, the KSE-100 Index reached another record level of 94,786 points after adding 594 points to its upward trajectory.

This positive development comes as the State Bank of Pakistan’s (SBP) foreign exchange reserves saw an increase of $84 million, reaching $11.26 billion during the week ending November 8, according to data released by the central bank on Thursday.

This represents an increase of 0.75% from the previous week. In addition, the nation’s total liquid foreign reserves experienced a modest increase, increasing by $33.7 million or 0.21% week-on-week to $15.97 billion.

In contrast, commercial banks’ reserves experienced a decline of $50.3 million or 1.06%, ultimately settling at $4.71 billion.

Furthermore, the economic team of Pakistan has expressed confidence in the discussions with the International Monetary Fund (IMF). Minister of State for Finance Ali Pervaiz Malik, in an exclusive conversation with Samaa TV, claimed talks were moving in a positive direction.

Highlighting improvements in Pakistan’s economic conditions, Malik noted substantial progress over the past six months to a year. He emphasized that Pakistan’s current economic situation has seen significant enhancement, with a reduced current account deficit of only $100 million in the first quarter, a reflection of the government’s strategy to increase remittances and boost exports.

Malik shared that discussions with the IMF are primarily focused on external financing, and while there have been speculations about a potential mini-budget or an increase in the petroleum levy, he clarified that these are currently premature considerations.

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Positive IMF negotiations propel KSE-100 Index above 94,000 points

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2 days ago

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As a result of investors’ optimism about the reported progress in the continuing talks with the International Monetary Fund (IMF), the Pakistan Stock Exchange (PSX) experienced a robust surge.

The benchmark KSE-100 Index of the PSX, which tracks market sentiment, rose 713 points to a new record high of 94,068 points, breaking above the 94,000-point barrier, as the trading session began.

Early in the day, the stock market began its upward trajectory as the KSE-100 Index steadily rose, gaining 574 points to reach 93,932 points. A possible agreement with the International Monetary Fund (IMF) might lead to more fiscal stability and back Pakistan’s economic reforms, which is why investors are so optimistic about the country’s future.

Officials from the Federal Board of Revenue (FBR) informed the International Monetary Fund (IMF) on Wednesday that the government would not be introducing a mini-budget and would instead continue to aim to collect Rs12,970 billion in taxes each year.

In line with continuing discussions with the Fund, FBR sources revealed that petroleum goods will not be subject to the General Sales Tax (GST).

The fact that Pakistan’s tax-to-GDP ratio has increased from 8.8% to 10.3%, a 1.5% gain viewed as a favorable sign of Pakistan’s fiscal policies, has reportedly pleased the IMF, who has voiced satisfaction at Pakistan’s recent economic performance.

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