NA panel orders review of gold jewellery export value-addition rules

The National Assembly Standing Committee on Commerce has directed the Ministry of Commerce to address concerns over value-addition requirements for gold jewellery exports in consultation with the State Bank of Pakistan (SBP), following complaints from industry representatives that existing rules are commercially unworkable.

During the meeting, an industry representative told the committee that SRO 760(I)/2013 governs the export of gold jewellery but contains provisions that impose fixed value-addition percentages linked to international gold prices. Under the framework, exporters are required to meet a value addition of 8% of the prevailing international gold price for plain bangles and chains, 12% for other plain jewellery, and 13% for studded or embedded jewellery.

Industry members argued that jewellery in global markets is sold on the basis of making charges per gram rather than as a percentage of gold prices. They said that when the SRO was issued in 2013, gold traded at around $1,380 per ounce, whereas prices have now risen to over $4,100 per ounce, significantly increasing the effective making charge requirement under the fixed percentage formula.

According to industry estimates, the 13% requirement currently translates into making charges of about $17 per gram, while exporters are reportedly able to obtain only $4–5 per gram in international markets. Representatives stated that the difference renders exports commercially unviable and has contributed to jewellery exports remaining in the range of $30–40 million.

The committee took notice of the concerns and instructed the Ministry of Commerce to resolve the issue in coordination with SBP. It also directed that the SBP deputy governor attend the next meeting, stating that senior officials familiar with the matter must represent the central bank.

Industry representatives further contended that the prescribed percentages do not reflect market realities and may exceed the statutory mandate under the Export Policy Order. They also compared Pakistan’s rates with India’s, noting that India applies lower value-addition norms for plain and studded jewellery.

The committee said the matter would be reviewed further to ensure that export regulations align with market conditions and support the sector’s competitiveness.