KARACHI: The import of gold has witnessed a steep fall and so the foreign exchange earned through the exports of jewellery.

According to figures of Federal Bureau of Statistics (FBS), jewellery exports plunged to $2.45 million during the first quarter (July-Sept) of this fiscal year as compared to $112m in the same period last year. Export in 2013-14 declined to $324m from $1.177 billion in 2012-13.

While, through legal channel only 93 kilogram of gold arrived in the country during the quarter under review as compared to 3,345kg in the same quarter last year. Import in 2013-14 fell to 4,222kg from 6,624kg in 2012-13.

In the wake of falling jewellery exports, All Pakistan Gem Merch­ants and Jewellers Association (APGMJA) has recently advised the State Bank of Pakistan (SBP) to introduce a new policy which could boost revenue generation and bring more foreign exchange.

APGMJA Chairman Saeed Mazhar Ali informed SBP Director Fazal Mehmood that jewellery export had declined since the SRO 760 (1) for import of gold was suspended from January to April 2014.

He lamented that due to strict rules in policy introduced by the Trade Development Authority of Pakistan (TDAP) like showing two years’ income tax return statement and other cumbersome procedural requirements, only 38 exporters were registered from June 2014, out of 52 applications.

He said the local jewellery industry has been victimised with the levy of 17pc sales tax which has been enhanced from 0.75pc to 17pc, adding: “Gold shops in the malls are paying around 20pc sales tax.”

Mazhar revealed that there had been no commercial import of gold for the last seven years and local consumption is met through thriving smuggling of yellow metal.

Published in Dawn, November 18th , 2014