Jewelers on Wednesday warned of a countrywide strike if the federal government did not lift the ban on the import of gold due to which the price of gold had increased by Rs 1500 per tola in the local market.
The embargo was imposed almost a month back when Finance Minister Ishaq Dar consented to a proposal of the money exchangers’ association to ban temporarily ban the import of gold to help the rupee regain its value against the dollar.
The ban was imposed last month when the rupee-dollar parity plunged to a record low of Rs 105 in the open market, with money dealers saying the demand-supply gap for the greenback had doubled due to the influx of gold import as the importers were raising dollars from the market to finance their imports.
All Pakistan Gem Merchants and Jewelers Association (APGMJA) and Karachi Sarafa Jewelers Association (KSJA) representatives said if the ban would play havoc with the local industry of precious metals.
APGMJA Chairman Saeed Mazhar said the printing of billions of rupees by the government to bridge the budget deficit, energy crises and the security situation, rather than the import of gold, was hampering foreign investment.
He said the ministry had taken a unilateral and biased decision and accused the money exchangers of providing foreign exchange for the alleged smuggling of gold.
Saeed questioned the 70 percent devaluation of the rupee since 2008 even though the gold importers were not taking a penny from the government, he said.
“The government’s failed economic policies and the poor law and order situation has led to the rupee-dollar disparity,” he claimed.
President KSJA Haroon Chand said that if the ban persisted there would be no raw material for the local gold market.
Thousands of factories would be shut down and millions of workers would become jobless, he said, adding that Karachi only has about one million workers who rely on the gold market.
He said an extended ban would lead to a rise in gold prices and the smuggling of gold.
