ISLAMABAD: Pakistan has enacted a 60-day ban on importing and exporting precious metals, jewellery, and gemstones to stabilise its foreign exchange reserves.

The temporary ban was imposed by a Commerce Ministry Order suspending SRO760 of 2013, which governs the trade of precious metals. The restriction is linked to the recent impasse with India as a potential strategy to limit the flow of metals.

Gold is still used as a traditional store of valueand is an important part of Pakistan`s cultural, financial, and manufacturing sectors. Pakistan predominantly imports gold from the UAE, Switzerland and other gold-trading hubs.

An official source told Dawn that the decision was made to limit the flow of gold and other precious metals to India via Dubai.

`There is a big difference in the price of gold, which is a primary reason that encourages its exports to India,` a government official stated.

Pakistan exported jewellery worth $10.94 million during the first ninemonths of the current fiscal year as against $6.93m over the corresponding months of last year, indicating a growth of 57.91pc.

Under the Export Facilitation Scheme, the government has provided numerous incentives to jewellery exporters, including duty drawbacks, zero-rating for specific inputs, and streamlined export documentation.

In 2023, Pakistan reduced several gold import regulations to promote transparency, minimize smuggling, and establish computerised customs valuation and tracking systems.