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

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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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Remittances Increase 25.2% in January 2025: $3.0 Billion Inflow

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Remittances from Pakistani workers totalled US$3.0 billion in January 2025, representing a 25.2% increase from the previous year.

The cumulative remittances for July through January of FY25 were 20.8 billion dollars, up 31.7 percent from 15.8 billion dollars during the same period in FY24.

In January 2025, the United States of America contributed 298.5 million dollars, the United Kingdom contributed 443.6 million dollars, the United Arab Emirates contributed 621.7 million dollars, and Saudi Arabia contributed 728.3 million dollars.

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In January, Pakistan’s remittances rose by 25%.

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In January 2025, Pakistan had a notable 25% growth in domestic remittances, with inflows hitting a record $3 billion for the month.

In a post on X, Khurram Shahzad, advisor to the Federal Finance Minister, revealed the most recent data, showing a sharp increase in remittances. The overall amount of remittance inflows from July 2024 to January 2025 was $20.8 billion, which is a 32% increase from the previous year.

According to official documents, the federal government’s non-tax revenue increased by Rs1,623 billion during the first half of the current fiscal year, from July to December, to Rs3,602 billion, up from Rs1,979 billion during the same period last fiscal year. The petroleum levy accounted for a significant portion of the increase, collecting an additional Rs76.64 billion, bringing the total petroleum levy revenue to Rs549 billion, up from Rs472.77 billion during the same period last year. Shahzad described the increase in remittances as a positive development for Pakistan’s economy and external accounts, and he projected that if this trend continues, annual remittances could surpass $35 billion by the end of the fiscal year.

Significant non-tax revenue was also generated by the State Bank of Pakistan (SBP), which reported a profit of Rs2,500 billion from July to December, a substantial increase from Rs972 billion during the same period the previous year.

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It is anticipated that the cost of electricity will drop by Rs2 per unit.

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In an effort to help consumers, the government is attempting to lower electricity costs nationwide.

A task team has started negotiating with 45 more power facilities to reduce electricity rates, according to Ministry of Energy sources.

According to the plan, the profit margin of about 25 state-owned power plants will be cut from 19% to 13%, which will result in an electricity tariff drop of 50 paisa per unit. Moreover, rather than total production capacity, these power plants will now get compensation based on actual electricity generation.

It is anticipated that these actions will result in a Rs2 per unit drop in the overall electricity bill. The task force’s suggestions will probably be brought up for approval in the upcoming cabinet meeting.

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