The News 13 Sept
ISLAMABAD: Pakistan is unlikely to resume gold imports soon even though the government has lifted an outright ban imposed during August, as the new rules for buyers are too restrictive, the jewellery industry said on Thursday.
Pakistan stopped all gold imports for August after purchases soared in the first half and topped $514 million in July alone - more than double what it bought in the first six months of 2012 - citing smuggling into neighbouring India.
New Delhi has itself stopped short of a total ban but has a record 10 percent duty on imports and strict controls on buyers as it tries to rein in purchases which helped swell its current account deficit to a record 4.8 percent of GDP in 2012/13.
India's July imports were $2.9 billion - just short of half last year's monthly average as the government measures took grip in the world's biggest buyer of bullion. Imports slumped to $0.65 billion in August but could pick up from September.
Now, Pakistan has said imports must be turned around into jewellery and exported within 120 days and has more or less doubled the amount of value that must be added in manufacture. Sales must be officially recognised by legal authorities in importing countries and Pakistan missions there.
Only 25 kilograms of precious metals - gold, silver and platinum - can be imported on a revolving basis and cannot be used in the domestic market.
"In light of the new rules, the future prospects of the import/export business are quite bleak," said Mazhar Ali, chairman of the All Pakistan Gems Merchants and Jewelers Association which says it represents almost 100 percent of the gold industry.
"Earlier it was a very simple procedure as only a contract letter was required for import," he added.
Mazhar Ali said that since the outright ban was lifted at the end of August, there have been no new imports of gold and only the balance outstanding from old contracts before the ban have been released by customs.
All gold imports to Pakistan are currently meant for making jewellery for export. Domestic demand is met by recycling, Mazhar Ali told Reuters. (Reuters)
Friday, September 13, 2013
New rules stall Pakistan gold imports after ban lifted
The News 13 Sept
ISLAMABAD: Pakistan is unlikely to resume gold imports soon even though the government has lifted an outright ban imposed during August, as the new rules for buyers are too restrictive, the jewellery industry said on Thursday.
Pakistan stopped all gold imports for August after purchases soared in the first half and topped $514 million in July alone - more than double what it bought in the first six months of 2012 - citing smuggling into neighbouring India.
New Delhi has itself stopped short of a total ban but has a record 10 percent duty on imports and strict controls on buyers as it tries to rein in purchases which helped swell its current account deficit to a record 4.8 percent of GDP in 2012/13.
India's July imports were $2.9 billion - just short of half last year's monthly average as the government measures took grip in the world's biggest buyer of bullion. Imports slumped to $0.65 billion in August but could pick up from September.
Now, Pakistan has said imports must be turned around into jewellery and exported within 120 days and has more or less doubled the amount of value that must be added in manufacture. Sales must be officially recognised by legal authorities in importing countries and Pakistan missions there.
Only 25 kilograms of precious metals - gold, silver and platinum - can be imported on a revolving basis and cannot be used in the domestic market.
"In light of the new rules, the future prospects of the import/export business are quite bleak," said Mazhar Ali, chairman of the All Pakistan Gems Merchants and Jewelers Association which says it represents almost 100 percent of the gold industry.
"Earlier it was a very simple procedure as only a contract letter was required for import," he added.
Mazhar Ali said that since the outright ban was lifted at the end of August, there have been no new imports of gold and only the balance outstanding from old contracts before the ban have been released by customs.
All gold imports to Pakistan are currently meant for making jewellery for export. Domestic demand is met by recycling, Mazhar Ali told Reuters. (Reuters)
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment