Pakistan’s long-delayed Reko Diq copper-gold project is emerging as one of the country’s most significant economic developments, with the potential to inject up to $74 billion into the national economy over its projected 37-year lifespan. This estimate was highlighted in a new analysis released by the Competition Commission of Pakistan (CCP), which positioned Reko Diq as a transformative force capable of reshaping the country’s fragmented and informal gold ecosystem.
The CCP’s latest study marks the first comprehensive review of Pakistan’s gold market, painting a detailed picture of an industry that has operated for decades with limited regulation, inadequate documentation, and heavy dependence on imported bullion. According to the report, over 90 percent of gold trade in Pakistan takes place informally, driven by cash-based transactions and opaque pricing practices that are heavily influenced by trader associations rather than transparent market systems. With annual domestic consumption estimated between 60 and 90 tonnes, the country remains almost fully reliant on imported gold, valued at just $17 million in FY24. This dependence leaves the market highly exposed to smuggling, tax leakages, and price volatility.
Within this context, Reko Diq is positioned as a structural turning point. The CCP noted that domestic production could ease Pakistan’s reliance on imports, introduce a traceable supply chain, and support downstream industries such as refining, hallmarking, and jewelry manufacturing. A steady supply of locally sourced gold could also reduce illicit inflows, improve market governance, and help formalize a sector that has historically operated outside official oversight.
The report further explores the deep-rooted obstacles that have hindered the gold market’s development. Key challenges include informal market dominance, lack of transparency in price-setting, fragmented regulatory oversight, high compliance costs, limited refining and assaying capacity, and widespread data gaps that obstruct evidence-based policymaking. Multiple agencies, including the Ministry of Commerce, Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), Pakistan Gems and Jewelry Development Company, and the Trade Development Authority of Pakistan, share overlapping mandates, creating policy inconsistencies and weak enforcement mechanisms.
To address these structural issues, the CCP has proposed a comprehensive reform roadmap. Central to this plan is the establishment of a Pakistan Gold & Gemstone Authority to harmonize regulations, licensing, and compliance with Anti Money Laundering and Counter Financing Terrorism standards. The commission has also recommended mandatory hallmarking and assaying across the country to ensure purity and enhance consumer protection. A key technological component of the proposal includes digital traceability through blockchain integrated with FBR’s Track & Trace system, aimed at improving transparency and tracking gold movement across the supply chain.
In addition, the CCP suggests the creation of a Gold Banking System modeled on Türkiye’s approach, which would enable households to mobilize stored gold into the formal economy. Strengthening data governance through centralized reporting and scientific price-monitoring mechanisms is also seen as essential to ensuring long-term market stability.
As Pakistan prepares for the commercial rollout of Reko Diq, the CCP emphasized that modernizing the gold sector is critical to unlocking the full economic opportunity presented by domestic production. Beyond revenue generation, the commission believes that reforming the sector will boost transparency, curb illicit trade, safeguard consumers, and support a more structured and competitive marketplace.
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