ISLAMABAD: Intelligence and law enforcement agencies have launched a major operation to tackle gold smuggling and the “gold mafia”.
According to the sources, a task force consisting of agencies has been formed to take decisive action against illegal activities.
Sources told JEE News that the purpose of forming the task force is to nab the smugglers so that legal action can be taken against them.
It is further learned that the task force has also prepared lists of mafia and smugglers and action has been initiated against them.
Moreover, the government also decided to start computerizing the buying and selling of gold and to bring gold dealers into the tax net on a war footing.
“This step will benefit both the people and the country,” the source said, adding that gold prices were already falling.
It should be noted that during the last two weeks, the price of gold per tola has decreased from Rs 236,000 to Rs 214,000 per tola.
Traders stop issuing bullion rates
Meanwhile, JEE News also reported on the closure of Karachi’s bustling gold market for the second consecutive day on Thursday following an alleged crackdown by the authorities.
A local trader, who declined to be named, said the market, one of Pakistan’s largest, did not release new gold rates because of reports of raids and arrests in parts of the market. .
Traders have also stopped issuing bullion rates for the last two days. The price of 24 carat gold closed at Rs 215,000 per tola (11.66 grams) on Tuesday and the All Pakistan Gems and Jewelers Sarafa Association has not updated the market price since then.
Spectators and industry stakeholders also faced silence as no official rates were announced by the All Sindh Saraf Jewelers Association.
Efforts to reach market participants for insight into the situation proved futile, with most declining to comment. However, when pressed about the possible reason behind the market closure, a spokesperson cryptically replied, “You know better than us”.
The veil of silence over the gold market appears to be linked to recent law enforcement activity targeting gold smuggling. Authorities have reported the arrest of four gold smugglers on Wednesday.
In the wake of these developments, the gold market has largely shut down its normal operations, with many traders turning off their phones and refusing to return calls.
Speculations are rife that the closure of the gold market is related to the recent events in which gold prices have fallen sharply. However, despite the simultaneous fall in the international gold market and the strengthening of the rupee, the prices in the domestic market increased.
Traders said it is suspected that some market participants may have tried to manipulate gold prices for their own benefit. The move reportedly led to a sharp rise in local gold prices by Rs 5,600 per tola, taking prices to Rs 215,000 per tola on Tuesday.
The worrisome price hike was in stark contrast to the global trend, where gold prices fell by $15 to settle at $1,911 an ounce on Tuesday.
The sudden volatility in gold prices has surprised industry observers and investors, especially considering that gold prices had fallen to Rs 209,400 per tola on Monday, September 11. A few weeks earlier, on August 31, gold had touched a second high of Rs 239. 800 per tola
Although the gold market often experiences ups and downs, the current situation has raised eyebrows due to its mysterious nature.
As market regulators and law enforcement agencies investigate the circumstances surrounding gold market closures and price hikes, there is growing hope for greater transparency and accountability in the industry in the near future.
