Islamabad: The price of gold has now reached an all-time high in Pakistan due to inflation. According to the Pakistan newspaper Dawn, on Thursday, gold prices in the domestic market have weighed Rs 105,200 (Pakistani rupee). Earlier on June 24, gold prices reached a record level of Rs 105,100 per tola. ASSJA President Haji Harun Rashid Chand says that now buying gold in Pakistan is out of the aam aadmi’s bus. Because it is becoming difficult for the common man to bear the daily expenses. At the same time, investment is not coming from abroad due to the continuing uncertainty about the situation in Pakistan.
Why gold is becoming expensive – The effect of rising prices internationally due to Coronavirus is visible on the domestic market. In such a situation, the James and Jewelry sector of Pakistan is suffering great losses. Also, the payment of their old orders is stuck at the international level. Muhammad Akhtar Khan Tesori, president of All Pakistan Gems Jewelers Traders and Exporters Association, informed the Ministry of Commerce that the payment for jewelry exported from the country should be received within 120 days.
According to Haji Harun Rashid Chand, the biggest tension for the domestic gold market is the heavy tax imposed by the Federal Board of Revenue (FBR) on the sale of gold jewelery. Due to this, there is no demand in the country. Recently, many shops have also been closed in Pakistan. In the next few days, we will shut down shops and protest against the government.
Inflation is scaring- Pakistan State Bank (SBP) told us that we have seen the highest inflation in the world in FY 2020, which has forced us to raise the interest rate. Pakistan has recorded the biggest inflation not only in developed economies but also in comparison to emerging economies like India, China, Bangladesh, and Nepal. Moong is being sold in the retail market at a price of Rs 220-260 per kg. At the same time, the price of gram has increased to Rs 160 per kg. Apart from this, the price of sugar has reached beyond 75 rupees. According to Pakistan PBS, the inflation rate has reached a record level.
