How is the gold rate in Pakistan calculated here?
We take the international spot price of gold in US dollars per ounce and convert it at the live US dollar to Pakistani rupee exchange rate: price per gram = ounce price ÷ 31.1035 × USD/PKR rate × purity of the karat. The value updates every few seconds while the world market is open.
International rate and the local market rate
In Pakistan the daily gold rate per tola is announced by the All Pakistan Sarafa Gems and Jewellers Association and followed by the sarafa markets of Karachi, Lahore and other cities. That rate is set in rupees and can sit above or below the international value shown here, depending on the rupee, local demand and supply.
How gold is bought in Pakistan
Pakistanis buy and quote gold mostly per tola and per 10 grams. 24K is quoted for bars and the daily sarafa rate, while jewellery is usually 22K or 21K, with making charges (mazdoori) added per tola or per gram.
Buying gold in the Gulf to take home
Many Pakistani workers in Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain and Oman buy gold there to take home. The gold value is the same as the world price, but taxes differ: Saudi Arabia charges 15% VAT on jewellery, Bahrain 10%, the UAE and Oman 5%, and Qatar and Kuwait have no VAT. Making charges are added by every shop. Keep the invoice and check the customs allowance of Pakistan before you travel.