Pakistanis buy a huge amount of gold every year, with the total annual demand ranging from 60 to 90 tons. In terms of value, this is estimated to be between $8 billion and $12 billion. Despite this enormous demand, the majority of gold in Pakistan—over 90%—is traded informally, meaning it is bought and sold outside official channels. This finding comes from a recent report by the Competition Commission of Pakistan (CCP).
The main drivers of gold demand in Pakistan are cultural and social events, especially weddings and religious or national festivals. Gold is traditionally seen as a symbol of wealth and security, and many families buy it as gifts or for investment purposes. These events create a consistent and strong demand for gold throughout the year.
To meet this demand, Pakistan relies heavily on gold imports, as domestic production is very limited. Imported gold is then distributed through various channels, including both formal markets such as licensed jewelers and informal markets that operate without strict regulation. The informal trade makes it difficult for authorities to track transactions and collect taxes, yet it continues to be the preferred method for many buyers due to easier access, flexibility, and sometimes lower prices.
