Pakistani gold jewelry exporters plan relocation to UAE amid taxation challenges, says trade association

In this pictures taken on April 22, 2019, a Pakistani jeweller checks gold bangles at his shop in Rawalpindi. (AFP/File)
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Updated 26 June 2024
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Pakistani gold jewelry exporters plan relocation to UAE amid taxation challenges, says trade association

  • The association says gold jewelry export from Pakistan has decreased by 95 percent since imposition of 18 percent sales tax
  • It warns export of gold ornaments can decline from $100 million to $1-2 million, affecting the families of 10,000 gold artisans

KARACHI: Pakistan’s gold jewelry exporters are planning to relocate their business operations to the United Arab Emirates (UAE), said the top official of their trade association on Tuesday, citing “unfavorable business conditions” that include heavy taxation by the government.

The Federal Board of Revenue (FBR), Pakistan’s tax collection body, has levied an 18 percent tax on local jewelers for the sale of advanced gold to foreign buyers, which can later be refunded after the export.

However, those involved in the business point out that this condition is challenging even for some of the biggest companies, as it requires them to deposit tax worth millions of rupees, often exceeding the value addition and profit.

Pakistani jewelers receive raw gold from foreign buyers who require them to convert the precious metal into finished products before export.

“Exports are suspended and the 18 percent sales tax requirement on advanced gold purchase by foreign buyers under the Entrustment Scheme by the FBR has dashed the exporters’ hopes,” Habib-ur-Rahman, Chairman of the Pakistan Gem and Jewelry Traders and Exporters Association (PGJTEA), told Arab News on the sidelines of a news conference in Karachi.




Chairman pf Pakistan Gem and Jewelry Traders and Exporters Association (PGJTEA), Habib-ur-Rahman (center), is addressing a press conference at Karachi Press Club in Karachi, Pakistan, on June 25, 2024. (AN photo)

Rahman noted that due to the “unfavorable business conditions,” many jewelers had decided to shift their businesses to the Middle East.

“There are nearly 100 businesses involved in Pakistan’s gold jewelry export, out of which 25 top exporters have decided to shift their business from Pakistan to the Middle East and the UAE, and many have already gone to Dubai,” he said, adding this would significantly reduce jewelry exports from the country.

The official said the UAE’s business conditions were far better than Pakistan’s since there was no issue of law and order, electricity was available at lower rates and one could export the goods instantly.

He warned if the sales tax exemption was not restored on the export of gold ornaments, the current export of $100 million would be reduced to $1-2 million.

This, he added, would financially impact the families of 10,000 gold jewelry artisans and reduce some valuable foreign exchange from the sector.

Addressing the news conference, Rahman said not even a gram of raw gold had been imported into the country since the end of the sales tax exemption earlier this year in February, adding Pakistani exporters had turned away buyers who were offering them business of $12 million.

“The orders which were canceled from Pakistan were transferred to India,” he added.

He noted the export of gold jewelry from Pakistan had declined by 95 percent at a time when other countries, like Turkiye, had increased theirs from $4 billion to $13 billion.

Indian exports had also surged from $32 billion to $42 billion, he continued.

Adnan Qadri, convener of the Federation of Pakistan Chambers of Commerce & Industry’s Central Standing Committee on Gems & Jewelry, said the sector had historically enjoyed exemptions from all duties and taxes related to gold exports.

A recent change in the customs processing system, however, had led to the sudden withdrawal of these exemptions, he informed, particularly affecting the sales tax exemption under the Sales Tax Act.

“This has resulted in the imposition of an 18 percent sales tax on gold imports, which is unjustified given the temporary nature of these imports under the Entrustment Scheme,” Qadri told Arab News.

He said that despite the assurances from the relevant authorities, the proposed amendment to the Act was omitted from the recent federal budget, causing severe economic repercussions within the sector.


Pakistan and Afghanistan resume high-level talks amid strained ties over militancy, deportations

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Pakistan and Afghanistan resume high-level talks amid strained ties over militancy, deportations

  • Pakistan’s special representative for Afghanistan arrived in Kabul for a Joint Coordination Committee session
  • Afghanistan’s minister for industry and commerce is also expected in Pakistan today for bilateral consultations

PESHAWAR: Senior Pakistani and Afghan officials resumed high-level talks on Wednesday, as a delegation from Islamabad arrived in Kabul for a session of the Joint Coordination Committee (JCC), a bilateral platform aimed at fostering cross-border cooperation on a range of issues, amid ongoing tensions over militancy and refugee deportations.
The last JCC meeting between the two countries was held in January last year soon after the launch of a nationwide deportation drive targeting undocumented Afghan nationals in Pakistan.
The campaign followed a sharp rise in militant violence in 2023, prompting Pakistani authorities to accuse the administration in Kabul of “facilitating” cross-border attacks by armed groups operating from Afghan soil, and to claim that some Afghan citizens in Pakistan were involved. The Afghan Taliban authorities rejected both allegations, saying Pakistan’s security challenges were an internal matter.
Special Assistant to the Prime Minister (SAPM) and Pakistan’s Special Representative for Afghanistan, Ambassador Mohammad Sadiq, who is leading his country’s delegation, confirmed the meeting in a social media post following his arrival in Kabul.
“SAPM/Pakistan’s Special Representative for Afghanistan arrived at Kabul at the head of a delegation to attend the JCC meeting,” he said in a social media post. “JCC meeting is being held after a long gap.”

Separately, Sadiq’s office announced that a delegation led by Afghan Acting Minister for Industry and Commerce Noor Uddin Azizi would arrive in Pakistan today, comprising representatives from Afghanistan’s economic, foreign affairs, refugee, and civil aviation authorities, along with private sector stakeholders.
Officials from both sides have not disclosed the full agenda of the JCC, but their interactions in the two countries are expected to focus on economic cooperation, transit trade, refugee issues, border management and security challenges during the day.


Pakistan PM vows crackdown on human smugglers after four citizens die in Libya boat tragedy

Updated 16 April 2025
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Pakistan PM vows crackdown on human smugglers after four citizens die in Libya boat tragedy

  • The foreign office confirmed the incident off the coast of Harawa on Tuesday that left at least 11 dead
  • Similar boat tragedies have also occurred before, prompting official efforts to dismantle trafficking networks

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday vowed strong action against human smugglers who entice Pakistani nationals with promises of better economic prospects abroad, risking their lives at sea, as the country confirmed the deaths of four citizens in a boat tragedy off the coast of Libya.
Sharif’s remarks came after officials confirmed that a migrant vessel had sunk off Libya’s Harawa coast, leaving at least 11 people dead, including four Pakistani nationals.
Pakistan’s diplomatic mission in Tripoli said the victims were identified through national documents recovered from the scene.
“Deeply saddened by reports from our Mission in Tripoli of yet another boat capsizing incident off the Harawa coast near Sirte City, Eastern Libya, in which at least four Pakistanis have been confirmed dead out of 11 casualties,” the prime minister said in a post on social media.
“Our Mission and the Foreign Office are working with the local authorities to retrieve the remains of the deceased,” he added. “While we are taking strong action against those responsible for luring our citizens into this death trap, we will continue to come down hard against such elements so no family has to carry the coffins of their loved ones in such accidents.”

The foreign office identified the victims as Zahid Mehmood from Gujranwala and Sameer Ali, Syed Ali Hussain and Asad Ali from Mandi Bahauddin in eastern Pakistan after the tragedy.
Two additional bodies recovered from the shipwreck remain unidentified, officials said, as the Crisis Management Unit at the foreign ministry continues to monitor the situation.
Each year, thousands of Pakistanis embark on perilous journeys across land and sea in search of work in Europe, often falling prey to human smugglers who arrange illegal crossings for large sums of money.
The Libya route remains one of the most trafficked and dangerous passages.
In February, Libyan authorities recovered the bodies of at least 16 Pakistani nationals after a similar boat tragedy off the coast near Zawiya city, with nearly 10 others reported missing.
Last year, over 260 Pakistanis drowned when an overcrowded vessel sank off the coast of Pylos, Greece, one of the deadliest Mediterranean disasters in recent history.
Pakistani authorities have since intensified efforts to dismantle trafficking networks, arresting several agents and cracking down on operations that facilitate such illegal migration.


Pakistan denies claims UN rights resolution unilaterally softened to accommodate Israel’s concerns

Updated 16 April 2025
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Pakistan denies claims UN rights resolution unilaterally softened to accommodate Israel’s concerns

  • Pakistan presented the resolution on behalf of the Organization of Islamic Cooperation earlier this month
  • It says the resolution is part of an annual OIC initiative and is only tabled after Palestinian endorsement

ISLAMABAD: Pakistan on Tuesday denied social media claims that a United Nations Human Rights Council (HRC) resolution presented by its diplomat in support of Palestine earlier this month was unilaterally diluted to accommodate Israeli concerns, saying the posts were based on inaccurate media reports and misrepresented the resolution’s outcome.

The statement followed a story by a global wire service, which reported that US lobbying, despite Washington’s withdrawal from the Council, had succeeded in preventing the inclusion of a powerful investigative mechanism in the Pakistan-led resolution on behalf of the Organization of Islamic Cooperation (OIC).

The report subsequently triggered criticism on social media, prompting the foreign office in Islamabad to issue a clarification.

“We have taken note of certain social media posts concerning the recently adopted Human Rights Council resolution on the Occupied Palestinian Territory (OPT),” the statement said. “These posts, based on inaccurate media reports, reflect a misunderstanding of the resolution adoption process and mischaracterize its outcome.”

The resolution, which focused on accountability for Israel’s actions in the Palestinian territories, is part of an annual OIC initiative at the Council in Geneva.

According to the foreign office, the resolution is only presented after the Palestinian delegation expresses satisfaction with the negotiated text, followed by final endorsement from the OIC member states.

“At no stage the text is modified unilaterally,” it added. “The resolution adopted during the latest HRC session adhered strictly to this process.”

The final text adopted by the Council referred the matter of setting up an independent mechanism to assist in the investigation and prosecution of those responsible for serious crimes in Palestinian territories to the UN General Assembly.

Pakistan rejected any suggestion of compromising its position on Palestine, reiterating that it does not recognize Israel and, as a matter of principle, does not engage with it in multilateral forums.

The foreign office noted that two other OIC-sponsored resolutions on Palestine were also adopted during the Council’s latest session, reinforcing Pakistan’s “unwavering and historic commitment” to the Palestinian cause.


Pakistan opposes expansion of permanent Security Council seats, calls for elected representation

Updated 16 April 2025
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Pakistan opposes expansion of permanent Security Council seats, calls for elected representation

  • A Pakistani diplomat says ‘there is no justification for creating new centers of privilege within the UN’
  • He says the UN should accommodate interests of underrepresented blocs like the Arab Group, OIC

ISLAMABAD: Pakistan on Tuesday opposed any expansion of the permanent membership of the United Nations Security Council, warning against “creating new centers of privilege” within the world body and instead advocating for a more democratic and regionally representative Council.
The statement came during an informal meeting of the Intergovernmental Negotiations (IGN) on Security Council reform, where long-standing divisions between two key camps — the G4 nations and the Uniting for Consensus (UfC) group — were once again laid bare.
While the G4 — India, Brazil, Germany and Japan — seek permanent seats for themselves in a restructured Council, the UfC group, led by Italy and including Pakistan, favors an expansion only in the non-permanent category to ensure greater regional equity and accountability.
“We remain staunchly opposed to proposals for permanent seats, as there is no justification for creating new centers of privilege within the UN,” said Ambassador Usman Iqbal Jadoon, Pakistan’s Deputy Permanent Representative to the UN.
“Our goal is to democratize the Council and support a reform that corresponds to the interests of the large majority of member states and regional and cross-regional groups, not just a few self-appointed states,” he added.
Jadoon stressed that any increase in the Council’s size must reflect the dramatic rise in UN membership since 1945, particularly from small and medium-sized states, and warned that allocating a limited number of additional seats permanently to a handful of countries would diminish chances for broader representation.
He reiterated Pakistan’s support for the UfC proposal to raise the Council’s membership to 27, composed entirely of elected non-permanent members, with seats distributed among the UN’s five regional groups.
The approach, he continued, would better accommodate the interests of underrepresented blocs such as the Arab Group, the Organization of Islamic Cooperation (OIC) and Small Island Developing States (SIDS).
“Each seat allocated permanently to an individual country will be a permanent blow to equitable geographical distribution or regional representation in any sense of the word,” Jadoon argued.
The Pakistani diplomat maintained that permanent seats occupied by individual states, even without veto power, would entrench the status quo and undermine accountability, an outcome he described as antithetical to the spirit of reform.
 


Roadside bomb kills three in southwest Pakistan as two polio workers abducted in northwest

Updated 16 April 2025
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Roadside bomb kills three in southwest Pakistan as two polio workers abducted in northwest

  • The first attack occurred in Mastung, a district in the insurgency-hit province of Balochistan
  • Polio workers’ kidnapping happened ahead of a nationwide anti-polio drive starting April 21

QUETTA: A powerful roadside bomb exploded near a vehicle carrying security personnel in Pakistan’s restive southwest on Tuesday, killing three officers and wounding 18 others, officials said.
Separately, gunmen also abducted two polio workers in the northwest.
The first attack occurred in Mastung, a district in the province of Balochistan, according to government spokesperson Shahid Rind.
No group has immediately claimed responsibility for the bombing, but suspicion is likely to fall on ethnic Baloch separatists, who frequently target security forces and civilians in the province as well as other parts of the country.
Balochistan has been the scene of a long-running insurgency in Pakistan, with an array of separatist groups, including the outlawed Balochistan Liberation Army which was designated as a terrorist organization by the United States in 2019, staging attacks.
The separatists seek independence from the central government in Islamabad.
Although Pakistani authorities say they have quelled the insurgency, violence in Balochistan has persisted.
Prime Minister Shehbaz Sharif, in a statement, denounced the attack and vowed to continue the “fight against terrorism” until it's eradicated.
Meanwhile, gunmen attacked a vehicle and abducted two polio workers who were on their way home after visiting a health facility in Dera Ismail Khan, a district in restive Khyber Pakhtunkhwa province, according to a local police officer Zahid Khan.
The kidnapping happened ahead of a nationwide anti-polio campaign which will begin April 21 to vaccinate 45 million children.
It wasn’t immediately clear who was behind the abductions but authorities have previously blamed militants for such attacks.
Insurgents falsely claim the vaccination campaigns are a Western conspiracy to sterilize children despite the government and medical experts’ vehement denials.

Pakistan has reported six new cases of polio since January.
According to the World Health Organization, Pakistan and neighboring Afghanistan remain the only two countries where the potentially fatal, paralyzing virus has not been eradicated.