ISLAMABAD: Pakistan’s once-thriving gem and jewellery export sector has come to an abrupt standstill following a sudden decision by the federal government to suspend a critical regulatory framework. The move has left exporters in limbo, with valuable consignments stranded and international contracts facing uncertainty, triggering significant alarm within the industry.
The unexpected suspension of SRO 760(I)/2013, the statutory regulatory order that governs the legal export of gold and jewellery, is at the heart of the crisis. This framework was deemed essential for facilitating transparent and compliant export operations.
Industry body appeals to Prime Minister
In response to the crisis, the Pakistan Gems Jewellery Traders & Exporters Association (PGJTEA) has issued an urgent appeal to Prime Minister Muhammad Shehbaz Sharif. The association is imploring the government for the immediate reinstatement of SRO 760(I)/2013, highlighting the severe disruption caused by the Ministry of Commerce’s decision to suspend the framework for the next two months.
In a formal letter to the Prime Minister, the PGJTEA voiced profound concern over the unilateral nature of the decision and its devastating impact on the organized and compliant gold jewellery export sector. PGJTEA Chairman Imran Khan Tessori stated, “This unexpected move has placed our legitimate and transparent export operations in grave jeopardy, leaving significant consignments stranded, threatening our existing contracts, and severely damaging Pakistan’s hard-earned export credibility.”
Millions in consignments stranded
Mr. Tessori further revealed the staggering immediate impact of the suspension, estimating that export consignments valued at approximately $50–60 million are currently prepared for shipment but are now unable to proceed due to the abrupt halt of SRO 760(I)/2013. He underscored the critical timing of this disruption, arguing that impeding legal exports is counterproductive when the nation is in dire need of boosting its foreign exchange reserves.
The PGJTEA sought to clarify the operational integrity of its members, asserting their consistent adherence to the legal framework. They emphasized their exclusive reliance on authorized channels for gold imports, their strict avoidance of grey market practices, and their sole focus on exports, with no involvement in the domestic market.
Unfair penalty on compliant exporters
The association stressed the inherent unfairness of the suspension, arguing that it unjustly penalizes law-abiding exporters while likely having minimal impact on illicit activities that operate entirely outside the purview of SRO 760(I)/2013.
Highlighting the significant economic repercussions, the PGJTEA cautioned that this suspension comes at a precarious juncture when Pakistan is actively striving to bolster its exports and stabilize its foreign exchange reserves. “This sudden policy reversal carries the significant risk of triggering a further decline in our nation’s exports and severely undermines the livelihoods of thousands of individuals employed within the formal jewellery sector,” the association’s letter articulated.
Calls for immediate intervention and fair review
PGJTEA Chairman Imran Khan Tessori has directly requested the Prime Minister’s immediate intervention to reinstate SRO 760(I)/2013. This urgent action is deemed essential to ensure business continuity and facilitate the clearance of all pending shipments and transactions, thereby mitigating substantial financial losses and potential legal ramifications for exporters.
Furthermore, Mr. Tessori has advocated for the inclusion of a PGJTEA representative in any investigative committee formed to review the matter. This inclusion, he argued, would ensure a fair and transparent review process and empower the committee to propose targeted amendments that effectively address any potential misuse of the SRO without inflicting harm on compliant exporters. While expressing support for the government’s efforts to strengthen regulation and accountability within the sector, the association cautioned against implementing blanket measures that inadvertently disrupt legitimate trade. They earnestly urged the Prime Minister to take swift action to restore confidence
