Exporters warn Pakistan losing jewellery market to India amid SRO 760 suspension
ISLAMABAD: With another disturbing news for the country Pakistan’s gold jewellery sector has been pushed into its worst crisis in half a century, as the suspension of SRO 760 has brought exports to a complete standstill, freezing millions of dollars’ worth of orders, trapping foreign buyers’ advance gold, and putting the country’s global credibility on the line.
The exporters of jewellery say the fallout has been devastating. Since May 6, 2025, when the government suspended SRO 760 for 60 days, not a single gram of jewellery has been exported. In just four months, exporters have lost $15 million in revenue, while confirmed export orders worth over $60 million have been postponed indefinitely. Furious buyers are now threatening legal action against Pakistani exporters for breach of contracts.
Through various letters the Pakistan Gems Jewellery Traders and Exporters Association has sounded the alarm, warning that foreign clients are already shifting business to rivals such as India and the UAE. “The market we built over 50 years is slipping into India’s hands,” the Association lamented, calling the situation a “national economic emergency” that could permanently damage Pakistan’s reputation.
At the heart of the crisis is nearly 50 kilograms of advance gold worth around $6 million provided by foreign buyers for jewellery production, now stuck in limbo. Exporters say they are unable to either fulfill the orders or return the gold, prompting international clients to issue legal notices demanding refunds. Some buyers have even linked payment of outstanding dues to the immediate return of the advance gold.
As per available documents, one of the most vocal complaints has come from TKR Gold and Gems Trading LLC, a leading jewellery importer in the UAE, which wrote directly to Pakistan’s Ambassador in Abu Dhabi. The firm, which regularly imports over 30 kilograms of jewellery each month from India, warned that Pakistan’s exporters have become “unreliable” due to the SRO suspension. “If this continues, we will be compelled to cancel all agreements with Pakistani companies,” the company cautioned, noting that past delays had already reduced its reliance on Pakistan.
The Association has urged the government to act without delay. “If gold jewellery exports are not resumed immediately, Pakistan will not only lose precious foreign exchange but also its credibility in the global market,” it said, demanding restoration of SRO 760.
Exporters fear the damage could be irreversible. Pakistan’s jewellery industry has long struggled to compete with regional giants, and once buyers migrate to India or Gulf-based suppliers, regaining lost ground may prove impossible. Markets in the UAE, the UK, the US, and Gulf states painstakingly developed over decades now risk being permanently ceded to competitors.
Sources claim that while SRO 760 was suspended to address regulatory loopholes and tax concerns, the blanket freeze has backfired by strangling legitimate exporters. They stress that reforms should target misuse of the scheme rather than shutting down the entire export pipeline.
For now, the industry remains in limbo foreign buyers angry, advance gold stuck, and exporters warning that each passing day strengthens competitors like India. What was once seen as one of Pakistan’s niche but promising export sectors now faces the very real threat of collapse.
