For four agonizing months, gold has been under an unofficial self-imposed siege in Pakistan. The importation of gold, which is an integral part of culture, finance, and manufacturing, came to a halt. The result is a dangerous and crippling scarcity. The result is a runaway gold price that is marginally affordable to the public and a strained market. The Pakistan Gold Import Halt is the main culprit.
Said documents confirm and quantify what every bride’s family and every investor has been feeling. The domestic price of gold increased to an unprecedented Rs. 54,800 per tola in the last month. In the past four months, this is even worse, as the price increased by almost Rs. 86,000. As of June, the price reached an astonishing Rs. 356,900 per tola in the Sarafa Bazaars. The impact of the Pakistan Gold Import Halt is undeniable.
The driving force of this unprecedented spike in gold price is an official and complete holt to gold imports. According to the government, not a single gram of gold was imported in September 2025. This is now the 4th month of zero imports. This is a 100% Year-on-Year decrease for this period, and for the 1st quarter of this fiscal year (FY2025-26), there has been no imported gold. This ongoing Pakistan Gold Import Halt is alarming.
To recognize this shortage, consider this example: the last official delivery made into the country was a mere 9 kilograms in May 2025. This is a stark contrast to past activity: in September 2024, the value of imports was $4.6 million, and in February 2025, the value of imports that entered the country was over $4 million, with the country receiving the highest monthly inflow of 43 kilograms for the year. This situation confirms the severity of the Pakistan Gold Import Halt.
Market analysts and industry veterans seem to be concerned that the worst is soon to follow, and for a good reason. There are no two ways about it: prices will rise, and continue to do so, should the import block be left untouched. The continuation of the Pakistan Gold Import Halt is threatening.
As one senior trader puts it, “It’s a market paralysis. The demand is there, but the supply just disappeared. When you lose control of your imports, you leave it open to speculation and a black market. People who have gold to save it and for savings for important life events, like weddings, are affected the most.” This quote highlights the consequences of the Pakistan Gold Import Halt.
For millions of Pakistanis, the circumstances are rapidly worsening. As price speculation increases, the ongoing import bans have left gaps that traders are further exploiting. This is expected to get worse as the peak wedding season approaches, especially since demand for gold and gold jewelry is exceptionally high during this time. The Pakistan Gold Import Halt exacerbates seasonal demand.
On top of this, the global gold market is further irrational and unpredictable. The global gold price is inconsistent, which creates domestic market gold prices to be inconsistent, as there is no global supply for the domestic market to rely on. This increases local price volatility due to the Pakistan Gold Import Halt.
With the situation involving imports frozen, the motive being to protect declining foreign exchange reserves, the ‘try to balance the economy’ perspective would certainly offset the serious damage being done to one of the country’s most culturally and financially important markets, punishing consumers and creating artificial scarcity benefiting only the vultures. The authorities’ lack of initiative to devise a feasible way of addressing the foreign exchange issue is, in a way, unreasonable, given the situation and the relative commodity price is to the consumer. The policy behind the Pakistan Gold Import Halt needs review.
Currently, the gold market is still suffering the consequences of the prolonged frozen market, with the price of a tola of gold being a painfully constant reminder of the market’s afflicted health caused by the Pakistan Gold Import Halt.
