KARACHI: In response to a crackdown on alleged speculative trading, the Pakistani bullion market is set to reopen this Saturday, as announced by Haji Haroon Rasheed Chand, President of the All Pakistan Gems and Jewellers Association (APGAJA), a day earlier.
A local media report highlighted that the gold market had been closed for a three-day period, during which law enforcement agencies delved into the matter. This hiatus left traders and investors in a state of uncertainty and confusion regarding local gold prices.
The market closure was initiated on Tuesday after gold prices surged by 2.7% to Rs215,000 per tola (11.66 grams), defying the global decline. Authorities took action against certain market participants suspected of creating artificial demand and supply gaps to manipulate prices.
Haroon Chand made the announcement regarding the restoration of market operations through a recorded message. He emphasized the association’s commitment to cooperate with authorities and assured that only spot or ready trading would be conducted within the market, leaving no room for speculators.
Chand further stated that the association had taken proactive steps to ensure the market’s compliance with regulations and transparency. Additionally, authorities had agreed to release some detained market participants suspected of manipulating gold prices.
We hope that the market will reopen tomorrow and the rates will be announced as usual, Chand stated.
As the gold market prepares to reopen, market participants and investors are keenly observing developments, aspiring for increased transparency and accountability.
This situation highlights the significance of adhering to regulations and upholding the integrity of the gold market, a crucial player in the region’s economy and trade.
It is noteworthy that intelligence and law enforcement agencies have initiated a substantial crackdown on the gold mafia and smugglers, who face accusations of manipulating gold prices and evading taxes, as per sources. A government-formed task force, comprising officials from various agencies, is actively working to take decisive action against the gold mafia and smugglers, identifying and listing them for legal proceedings.
The objective behind establishing this task force is to apprehend the mafia and smugglers, allowing for appropriate legal action. Additionally, the government has decided to expedite efforts to computerize the sale and purchase of gold, bringing gold dealers within the tax net.
