Senate sub-panel formed to resolve gold import issue

Minister says raw gold cannot be taxed because of ban on import

ISLAMABAD:

The Senate Standing Committee of Commerce formed on Wednesday a sub-committee to review and resolve the issue of the gold import, after it transpired that the government could not tax the precious metal because its import was illegal.

The committee meeting, chaired by Zeeshan Khanzada, was also informed that the Afghanistan’s government had raised the price of coal after Prime Minister Shehbaz Sharif indicated its import from the neighbouring country.

The committee was informed that raw gold was not legally imported into Pakistan, therefore, the local requirement was met through smuggling. A representative of the jewellers association told the committee that 170 tons of gold was smuggled into the country every year.

The members pointed out that India exported gold jewellery and earned foreign exchange but Pakistan could not export the jewellery, because the State Bank of Pakistan (SBP) would not permit the gold import.

Commerce Minister Naveed Qamar said that since the gold import was illegal, the government could not levy tax on it. Senator Anwarul Haq Kakar said that import of gold jewellery was allowed but the import of raw gold was banned.

The meeting was also informed that former commerce adviser in the previous Pakistan Tehreek-e-Insaf (PTI) government, Razak Dawood, had allowed the import of 5 tons of gold but there was no progress on the matter, so far.

The jewellers association representatives disputed the figure of 80 tons of gold smuggling, saying that 170 tons of gold was brought illegally in Pakistan. They added that only 2% of gold came legally. They stressed that large-scale gold smuggling hurt the national economy.

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The association representatives complained that working of the commerce ministry on the issue of gold import was slow. The commerce secretary replied that a roadmap had been prepared for the import of gold and a sub-committee should be formed to review it.

Senator Fida Mohammad raised issue of jaggery export in the meeting. He said that there was a ban on the export of sugar, which was affecting the export of jaggery. The commerce minister said that a meeting of the Sugar Advisory Board was being held to review the sugar exports.

The commerce secretary said that the newly reconstituted Sugar Advisory Board was scheduled to hold its maiden meeting on Wednesday. He added that sugar export could be considered in case of surplus stock, adding that if sugar export was allowed jiggery could also be exported.

At the onset of the meeting earlier, the committee chairman expressed displeasure with the late provision of the working paper, which delivered one hour before the meeting. He directed the commerce secretary to look into the matter.