First gold platform launched

KARACHI: Pakistan's first formal company for offline and online trading of gold, Zakariya Gold, was launched on Tuesday.

The company, which is part of the Zakariya Group, said it would offer transparent and regulated gold trading services, both online and through its network of labs and franchises across the country.

"The buying and selling will be integrated with the system of Federal Board of Revenue (FBR) and the process will be monitored with the tracking system," Muhammad Shahid Zakariya, chairman of Zakariya Group, told reporters at the inauguration ceremony.

He said the company planned to set up 2,300 gold labs and 820 franchises in Pakistan, where gold buying and selling is largely unregulated and prone to speculation, tax evasion, and black marketing. "Our calculation shows that Rs2,500 billion can be generated from this market within five years.”

Zakariya Gold will release gold rates daily in connection with the Pakistan Mercantile Exchange Company (PMEX), the country's only multi-commodity futures exchange, as opposed to the current practice of releasing rates by various traditional bodies.

The company's launch comes after the government cracked down on elements involved in speculation and black marketing of gold prices in the local market, with the help of the FIA, FBR, and other law enforcement agencies.