Pakistan allows import, export of jewelry after six months

Pakistan has lifted a ban on the import and export of gold, jewelry and gemstones, a restriction that jewelers say caused severe financial losses and pushed parts of the industry to the brink of collapse.

The Ministry of Commerce issued a notification, formally restoring trade permissions that had been suspended since May 6, when the government abruptly blocked all cross-border movement of gold and related products in an attempt to curb smuggling, stabilize the currency and plug irregularities in the export-linked schemes used by jewelers.

The new notification was issued after approval from the federal cabinet.

The ministry simultaneously rescinded SRO 760(I)/2025, the order that had imposed the ban.

With the decision, exporters are once again allowed to use the Entrustment Scheme, which gives them the required 120-day period to re-export finished jewelry made from imported gold.

Jewelers had long argued that the ban froze this essential mechanism, leaving consignments stuck, disrupting supply chains and forcing workshops to lay off artisans.

Industry associations said the six-month suspension cost exporters millions of dollars in lost orders, damaged Pakistan’s reputation in the Gulf and European markets, and caused a steep drop in domestic jewelry production.

Some businesses reported closing retail outlets and halting manufacturing due to the inability to source legal imported gold.

Traders also complained that the ban pushed gold transactions into informal and unregulated channels, undermining the very stability the government sought to achieve.

The lifting of the restriction is expected to revive Pakistan’s struggling jewelry and gemstone sector, which employs thousands of craftsmen and relies heavily on seasonal export demand.

Officials say the government will introduce stricter monitoring mechanisms to ensure compliance with import and export rules while safeguarding foreign exchange reserves.