ISLAMABAD: The government is considering suspending SRO 760, the regulatory framework that governs the export of gold jewelry and semi-precious stones from Pakistan. Official recommendations for the suspension have been finalized and are expected to be discussed in an upcoming federal cabinet meeting, sources informed.
According to industry sources, if the proposal is approved, it could result in a complete halt to the export of gold jewelry and semi-precious stones, raising serious concerns within the industry.
Introduced in 2013, SRO 760/2013 was aimed at tightening controls over the export of precious metals and stones. However, exporters argue that the regulation led to a drastic 98% decline in exports over the years. They believe the SRO has become a barrier rather than a facilitator of trade, particularly in a sector with significant export potential.
Exporters also warn that suspending the SRO would have severe financial implications. Without the exemptions provided under the current scheme, businesses would be required to pay import duties and sales tax on gold used for jewelry production, significantly increasing their costs.
“Millions of rupees could get stuck in duties and taxes,” said an industry representative, expressing fears that the suspension could force many exporters out of business.
The jewelry sector, once considered a promising area for foreign exchange earnings, has struggled under strict regulatory and fiscal constraints. Industry stakeholders are urging the government to engage with exporters before making a final decision, warning that any abrupt move could further damage an already fragile export segment.
