960404

Export finance

scheme may help

boost legal gold

jewellery exports

RECORDER REPORT

KARACHI: The facility of Export Finance Scheme, extended by the State Bank of Pakistan (SBP) to gold jewellery export with or without precious stones against firm contracts, may help boost legalised exports of the gold jewellery from Pakistan.

Mohammad Saeed Qureshi, Chairman, sub-committee on law and order, All-Pakistan Gem Merchants and Jewellers Association, was of the view that the total exports of gold jewellery which stood at $4.987 million during 1994-95 could multiply by 20 times provided conditions for exports were made more lenient.

More liberal gold policy coupled with export financing facility available for the last many years to jewellers in neighbouring India has taken that country to an export target of around $5 billion during the current financial year. Jewellery craft in Pakistan is much more advanced in terms of quality and variety, Saeed Qureshi said.

Another source in the gold trade said that our existing exports of gold jewellery and precious stones were much higher than the official figures disclosed, despite complex procedures at Customs and harassment by different agencies.

Tying up of export financing of gold jewellery with import of gold is also expected to increase legal import of gold into the country.

The unofficial import of gold, including smuggling, according to knowledgeable sources, exceeds legal imports by tons every year, but the declared amount of exports is quite meagre.

Another area which also needed attention of the government, trade circles said, was the precious stones which were available in plenty, but their worth was not fully exploited and bulk of them were illegally exported to India.