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Gold demand in Pakistan rises by 24pc

KARACHI: Pakistan's demand for gold rose to 27.9 tonnes in the fourth quarter of 1999, lifting the demand for the year to 121.8 tonnes. It has risen by 24 percent as compared with the demand in 1998.

According to Yousuf Akhtar Husain, Manager Pakistan, World Gold Council, "the steady increase in demand in the last quarter of 1999, is an affirmation of investors' confidence in gold as a store of value and also increased consumer interest, because despite higher petroleum prices and the imposition of general sales tax, the annual gold demand in Pakistan has touched an all time high of 121.8 tonnes."

Gold demand in the Middle East, weakened by wildly fluctuating gold prices, dropped from 156.3 tonnes to 149.3 tonnes, a decrease of 4.5 percent over the same period in 1998.

In the Gulf states, gold demand fell to 27.9 tonnes during the fourth quarter of 1999, a decline of nine percent over the same period last year.

Saudi Arabia, too, followed a similar trend with offtake at 39.1 tonnes lower by 11 percent compared with the same period last year. Turkey, hit by consecutive earthquakes and greatly reduced tourist arrivals, did not fare any better. Gold demand in Turkey fell to 20 tonnes, a decrease of 33 percent compared with the same period last year.

Egypt, on the other hand, outperformed all its Middle East neighbours, with offtake up to 27.9 tonnes, an increase of 39 percent over the same period last year. India, too, kept up its record gold consumption, with year-end demand at 838.8 tonnes, three percent higher than last year.

"Uncertainty caused by volatile gold prices saw weak demand at the beginning of the period, but offtake increase during the quarter with the return of price stability, the Eid buying season during December and various trade promotions, said Moaz Barakat, Regional Director for Middle East, World Gold Council.

The World Gold Council is an international organisation formed and funded by leading gold mining companies from around the world to increase the demand for gold. The 27 countries monitored in Gold Demand Trends account for approximately 80 percent of global gold demand. APP