Why is there a slight difference in the gold rate between Karachi and Lahore? We break down the logistics of Pakistan's bullion trade.
The Hub of Bullion: Karachi
Karachi is the financial capital of Pakistan and the primary port of entry for legally imported gold. The All Pakistan Sarafa Jewellers Association, headquartered in Karachi, issues the benchmark daily rate that the rest of the country follows.
The Premium in Lahore and Islamabad
Because gold physically enters through Karachi, transporting it to Lahore, Islamabad, or Peshawar incurs security and logistics costs. Consequently, the spot price of physical gold in upcountry markets can sometimes trade at a slight premium of Rs 500 to Rs 1000 per tola compared to Karachi.
Making Charges Differ
While the raw bullion price is slightly higher upcountry, Lahore is famous for its intricate, handcrafted jewelry. The making charges for bridal sets in Lahore's Suhaag Bazaar can be highly competitive due to the massive concentration of skilled artisans.