How Gold Pricing Works in Pakistan
Gold in Pakistan is priced and traded primarily by tola, a unit of weight that equals 11.6638 grams. The Sarafa (jewellers) market in major cities including Karachi, Lahore, Peshawar and Islamabad sets daily gold rates based on international gold prices quoted in US dollars per troy ounce, combined with the prevailing PKR/USD exchange rate.
The All Pakistan Sarafa Gems and Jewellers Association announces official daily gold rates, which are widely reported in newspapers and financial apps. These rates are quoted for 24K (pure) gold, from which prices for other purities (22K, 21K, 18K) are derived by applying the purity percentage.
Gold jewellery in Pakistan is predominantly sold in 22K purity (91.67% gold content), which offers a balance of durability and gold content suitable for intricate jewellery designs. Investment-grade gold bars and coins are typically 24K. Understanding purity percentages helps you calculate the actual gold content — and true value — of any piece you are buying or selling.
When buying gold jewellery, the total price includes the gold value (based on weight × purity × current rate) plus making charges (labour fee), which typically range from 8% to 20% of gold value depending on design complexity. Our calculator gives you the pure gold metal value to help you verify whether the base price is fair before adding making charges.
Gold as an Investment in Pakistan
Gold has historically been one of the most reliable stores of value for Pakistani households. With the rupee losing significant purchasing power over the past decade — depreciating from roughly PKR 100/USD in 2018 to PKR 278/USD in 2026 — gold ownership has provided a natural hedge against currency devaluation. A tola of 24K gold that cost PKR 70,000 in 2018 is worth over PKR 2,50,000–2,70,000 in 2026, a return of over 280% in rupee terms.
Ways to Invest in Gold in Pakistan
- Physical gold (jewellery): Most common form of gold holding in Pakistani households. Liquidity is good — any Sarafa dealer will buy it. However, making charges (8–20%) reduce effective return when buying jewellery purely as investment.
- Gold bars and coins: Available from some banks and authorised dealers in 1g, 5g, 10g, and 1 tola denominations. No making charges. Purity is stamped and certified. Better for pure investment.
- Pakistan Mint gold coins: Issued by the Pakistan Mint, these are 22K coins in various weights. Officially certified purity.
- Gold saving schemes (Sarafa): Many jewellers offer monthly savings plans where you pay a fixed amount each month and receive gold at the end of the term at the prevailing rate. No advance gold price locking.
- Roshan Digital Account (gold savings): Some banks offer gold savings products through RDA for overseas Pakistanis.
Gold Price History in Pakistan (PKR per Tola)
| Year | Price per Tola (24K, PKR) | USD/PKR Rate | International Price (USD/oz) |
|---|---|---|---|
| 2020 | ~1,10,000 | ~162 | ~1,900 |
| 2021 | ~1,05,000 | ~162 | ~1,800 |
| 2022 | ~1,25,000 | ~188 | ~1,800 |
| 2023 | ~2,00,000 | ~285 | ~1,950 |
| 2024 | ~2,30,000 | ~283 | ~2,200 |
| 2025 | ~2,55,000 | ~281 | ~2,600 |
| Mid-2026 | ~2,65,000–2,75,000 | ~278 | ~2,700+ |
Buying Gold Jewellery in Pakistan — What to Know
Gold jewellery purchases in Pakistan involve several components beyond the raw gold value. Understanding each one protects you from overpaying:
- Gold value (Asli Rate): Weight × purity factor × today's Sarafa rate. This is the floor price — the minimum the jewellery should cost.
- Making charges (Ujrat): Labour cost to craft the jewellery. Ranges from 8% (simple bangles) to 30%+ (intricate bridal sets). Always ask for this figure separately.
- Wastage: Some jewellers charge wastage (1–3%) for metal lost during crafting. This practice is declining in formal shops.
- Purity hallmarking: Reputable jewellers stamp pieces with karat markings (22K, 18K). Ask for a receipt specifying weight and karat. Hallmarked gold is easier to resell at fair prices.
To check if a quoted price is fair: use our calculator to find the pure gold value, then check that the total quoted price minus the gold value equals reasonable making charges. For a 3-tola 22K necklace at PKR 2,70,000/tola, gold value = ~PKR 7,42,500. If the jeweller quotes PKR 9,00,000 total, making charges = PKR 1,57,500 (about 21%) — on the high end but within range for a complex piece.
Gold Weight Conversion Formula
Worked Example
You have 3 tola of 22K gold. Today's 24K rate is PKR 2,70,000 per tola.
Gold Purity Guide
| Karat | Purity % | Gold Content | Common Use in Pakistan |
|---|---|---|---|
| 24K | 99.9% | 24 parts gold | Investment bars, coins |
| 22K | 91.67% | 22 parts gold, 2 other metals | Jewellery (most common) |
| 21K | 87.5% | 21 parts gold, 3 other metals | Jewellery (Gulf standard) |
| 18K | 75% | 18 parts gold, 6 other metals | Modern / designer jewellery |
Gold Weight Conversion Table
| Tola | Grams | Troy Ounces |
|---|---|---|
| 1 tola | 11.6638 g | 0.375 oz |
| 5 tola | 58.319 g | 1.875 oz |
| 10 tola | 116.638 g | 3.75 oz |
| 1 troy ounce | 31.1035 g | 2.667 tola |
| 100 grams | 100 g | 8.573 tola |
How To Use This Gold Price Calculator
- Enter today's gold rate per tola (PKR). Check the current rate on Pakistan's Sarafa Association announcements, your local jeweller, or financial news sites.
- Select the gold purity — 24K for pure gold bars or coins, 22K for most Pakistani gold jewellery, 21K for Gulf-style jewellery, or 18K for modern designer pieces.
- Choose your weight unit — tola (most common in Pakistan), gram, or troy ounce.
- Enter the weight of your gold.
- Enter the current USD to PKR exchange rate (pre-filled with an approximate rate — update it for accuracy).
- Click Calculate Gold Value to see the value in both PKR and USD instantly.
Frequently Asked Questions
One tola equals exactly 11.6638 grams. This unit originated from the Indian subcontinent and remains the primary gold weight unit in Pakistan, India, Bangladesh and Nepal. When buying gold in Pakistani jewellery markets (Sarafa), prices are almost always quoted per tola.
Divide the price per tola by 11.6638 to get the price per gram. For example, if 24K gold is PKR 2,70,000 per tola, then the price per gram = 2,70,000 ÷ 11.6638 = PKR 23,145 per gram. For 22K gold, multiply the 24K gram price by 0.9167.
24K gold is 99.9% pure gold — the highest purity available. It is too soft for most jewellery and is mainly used for investment bars and coins. 22K gold is 91.67% gold (22 parts gold + 2 parts other metals like silver or copper), making it harder and suitable for jewellery. Most traditional Pakistani gold jewellery is 22K.
Pakistan's gold prices are directly linked to international gold prices quoted in US dollars per troy ounce on global commodity markets (COMEX, London Bullion Market). Since Pakistan imports gold and transacts in PKR, any change in either the international gold price or the USD/PKR exchange rate results in a change in the local gold price. Political stability, global inflation, and Federal Reserve interest rate decisions are major international price drivers.
Check today's official gold rate from the Sarafa Gems and Jewellers Association announcement (widely published in Pakistani newspapers). Use our calculator to find the metal value of your gold based on its weight and purity. The jeweller's quoted gold price (before making charges) should be close to this figure. Making charges are typically 8–20% extra and should be disclosed separately.
Gold has been an excellent store of value in Pakistan historically, particularly as a hedge against PKR devaluation. A tola that cost PKR 70,000 in 2018 is worth over PKR 2,65,000 in 2026. However, gold generates no income (unlike bank deposits or rental property) and has making charges when bought as jewellery. It is best suited as a 10–20% portion of a diversified portfolio, not as the sole investment vehicle.
The most reliable sources for Pakistan's daily gold rate are: (1) All Pakistan Sarafa Gems and Jewellers Association announcements; (2) Business sections of major newspapers — Dawn, The News, Business Recorder; (3) Financial apps like Hamari Web, Forex.pk; (4) Pakistan Mint website for coin prices. Rates are typically announced each morning and may be revised if international prices move significantly intraday.