960408

Gold imports

may double

in a year

KARACHI: A move by the State Bank of Pakistan to boost jewellery exports could double gold imports within 12 months, dealers said on Monday.

"Import of gold will double in one year following the State Bank's incentives to finance export of jewellery," Saeed Qureshi, a member of Pakistan Gem and Jewellers Association, told Reuters.

On Wednesday, the central bank authorised bank financing of gold jewellery exports against firm export orders or letters of credit. Exporters would be required to repatriate the proceeds by importing gold and remitting through banking channels any remaining values on gems embedded in the jewellery.

Qureshi welcomed the incentive and said it would stimulate Pakistan's jewellery exports.

No official gold import figures are available, but brokers say about 100 tonnes of gold a year reaches Pakistan through formal and informal channels.

Jan Mohammad, an executive at ARY Traders, a leading gold importer, said his company had imported 412,000 tola of gold in March, up from 260,000 in February and 120,000 in January. One tola equals 11.664 grams.

He said formal and informal gold jewellery exports earned 600 million to 650 million rupees a year.-Reuter