ISLAMABAD: Gold is turning out of reach of buyers in Pakistan. The precious metal’s rates are continuously going up which is making it impossible for the parents to buy gold for marriages of their kids.
For the last one month, gold has become costlier by Rs 30 thousand. Data released by a local gold smith association suggest that gold price of 24 karat was around 355 as of August 17 which rose to Rs 385 thousand per tola as of September 17, 2025.
There are two factors which is making gold costlier in Pakistan. One, international market and the second rising investment in gold trade by a vast majority of investors. Pakistani investors keep watch for any potential area for investment and earn maximum money. The banking sector was top priority for every Pakistani investor when the bank had 27 to 28 percent interest rates on investment. This golden era of the banking sector began in 2018 when State Bank of Pakistan (SBP) had scaled up the interest rate to 22 percent. SBP’s cunning move put every business in Pakistan at grinding halt . Business houses shut down their businesses and parked their investment in the banks to grab more profit. Industrialists also followed the same course . Many of them shut down their industries and opted to shift their working capitals in the banks which used to pay on average over 20 % profit on investment . The banks showed huge growth between 2028 and 2024 when finally banks were questioned on their huge profits .
Although intervention of powerful institution resulted in discontinuity of the policy of killing interest rate, but it could not hold SBP responsible of destruction of economy through irrationally higher interest rate. Had some one questioned SBP’s top baboos for jacking up the interest rate to 22 percent for years, it could have exposed the whole network of the banks that earned illegal profits during 2018-2023.
Even today when it has become clear that SBP’s move to jack up the interest rate at 22 percent was a deep-rooted conspiracy , SBP is artificially keep interest rate at 11 percent. SBP is not ready to bring interest rate at actual level I e around 6 percent to 7 percent . SBP is protecting the interest of the banking sector at the cost of the economic and business activity in Pakistan.
Foreseeing further downfall in the banks interest rate in coming months, cunning investors have jumped into the gold market to get irrational profit on investment . At present , stock market and gold market are considered more profitable sectors.
