Following the arrest of former prime minister and Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan, political turmoil has gripped Pakistan, leading to a significant surge in the price of gold.
The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported that the rate of gold (24 carats) experienced a massive increase, rising by Rs9,900 per tola and Rs8,487 per 10 grams, reaching Rs240,000 and Rs205,761, respectively. It is worth noting that the international market’s gold rate remained unchanged at $2,031 per ounce.
While the price of gold has been steadily rising in recent times, the recent spike can be attributed to the ongoing political storm following Khan’s arrest. The country has witnessed widespread violent protests, resulting in the deployment of the military in three provinces.
In light of the already struggling economy, individuals are turning to gold as a safeguard against inflation and currency depreciation.
Furthermore, Pakistan is facing an alarming weekly inflation rate, reaching a record high of 48.35% year-on-year (YoY). During the seven-day period ending on May 4, prices of essential commodities such as chicken and wheat flour have significantly increased.
Adding to the economic concerns, Pakistan may not receive a crucial tranche from the International Monetary Fund (IMF) in the near future, as the country’s loan program is not scheduled for discussion by the lender’s Executive Board until May 17.