Gold price in Pakistan will shock you! Rs 86,250! Yes, you read that right
Gold prices in Pakistan on August 9 surged by Rs 1,750 per 10 gms. In India, gold price for 10 gm is Rs 37,920 while in Pakistan, it has scaled to Rs 86,250 per 10 gms!
Opposing Indian government's move to virtually scrap Article 370 and turn Jammu & Kashmir into a Union territory is costing Pakistani economy dearly. The Pakistani government is already facing huge economic crisis as their account has almost gone nil and they are now they are finding it difficult to even pay the interest on loans that they have taken from the global lending institutions. Now, in a clear indication of the precarious condition of the Pakistani economy, gold prices in Pakistan have jumped manifold vis a vis the Indian gold prices in recent times. Pakistan Prime Minister Imran Khan is unable to contain rising gold prices in Pakistan and they have risen to a WHOPPING Rs 86,250 per 10 gms, which is more than double of gold prices in the Indian markets.
Facing acute debt-crisis, petrol and diesel prices have already scaled to an alarming level in Pakistan. Mixing its political hostility with India in its trade and commerce relations have also gone against the Pakistani markets. After posing impediments in its trade and commercial relations with India, the gold prices in Pakistan on August 9 surge Rs 1,750 per 10 gms. In India, gold price for 10 gm is Rs 37,920 while in Pakistan, it has scaled to Rs 86,250 per 10 gms.
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According to the bullion experts, this rise in gold prices in Pakistan is mainly caused by the slide in Pakistani currency in recent times. They are of the opinion that gold prices are rising in global markets, but due to the weak performance of Pakistani currency against the major seven currencies at the Forex market, the gold prices in Pakistan have scaled new high. According to All Sindh Sarrafa Jeweller Association (ASSJA), in global markets, gold prices have scaled to $1495 per ounce — up by near $32. But, due to the depreciating Pakistani currency, the gold prices have shot up more in Pakistan than in India. Rest of the damage is being done by the rising inflation.
If we go by the expert opinion, Pakistan urgently needs to control inflation because it would help Pakistani currency to hold its ground in the Forex market. Once, its national currency stabilises, then it should focus on enhancing trade and commerce, irrespective of its political relations with various countries including India. They are also suggesting Pak PM Imran Khan to respond positively toward the reprimand IMF has given to the Pak administration in regard to further funding. So, PM Imran Khan needs to take action on an urgent basis to keep Pakistan out of the FATF (Financial Action Task Force) gray list.