Pakistani Gold Jewellery Exporters Warn of $60m Loss Amid Suspension of SRO 760

Staff Reporter

Karachi: The gold jewellery export sector of Pakistan, a vital source of foreign exchange, is facing its worst crisis in 50 years following the suspension of SRO 760. Despite its suspension on May 6, 2025, for an initial period of 60 days, four months have passed and the SRO has still not been restored, bringing exports to a complete halt.

Since the suspension, not a single gram of gold jewellery has been exported, resulting in an estimated loss of $15 million so far. Exporters fear that pending orders worth $60 million, backed by 50 kilograms of advance gold from foreign buyers, are now at serious risk of cancellation.

Exporters stressed that there was no justification for suspending jewellery exports, especially without consultation with stakeholders. They argued that, at the very least, orders received before the suspension should have been honored. Instead, shipments scheduled as early as March 2025 were blocked, creating severe financial hardships for exporters.

Foreign buyers have since issued legal notices to Pakistani exporters, demanding either the return of advance gold or immediate fulfillment of contracts. Payments for outstanding dues have also been withheld, leaving exporters unable to bring foreign exchange into the country within the stipulated timeframe.

A leading Dubai-based company, T.K.R. Gold and Gems Trading L.L.C., wrote to the Pakistani Embassy in Abu Dhabi, warning that if advance gold is not returned promptly, they will cancel all agreements with Pakistani exporters. The company further highlighted that it imports 30 kilograms of jewellery monthly from India without facing such disruptions — signaling a major loss of buyer confidence in Pakistan.

Exporters emphasized that the suspension of SRO 760 has not only paralyzed exports but also blocked channels for returning advance gold, forcing foreign buyers to consider legal remedies.

Industry leaders said:

“This situation is not just an economic shock but a massive blow to Pakistan’s international credibility. The reputation we built over five decades is now collapsing, while India is benefitting from our buyers’ shifting confidence.”

They warned that Pakistan risks losing its hard-earned international market share to India, where policy consistency has helped stabilize gold jewellery exports.

Key Demands of Exporters:

1. Immediate restoration of SRO 760 to resume gold jewellery exports.
2. Policy stability and transparency in the export process to regain buyer confidence.
3. Removal of obstacles in the import and export procedures for advance gold to allow timely order completion.
4. Direct consultation with exporters to design long-term measures that can increase exports and protect Pakistan’s credibility.

Exporters concluded with an urgent appeal:

“We hope the government will recognize the severity of this crisis, act immediately, and save this vital foreign exchange-earning sector from collapse.”