Reinstatement of SRO imminent, as per Jam's announcement to the APSGJTA
The reinstatement of the Special Revenue Order (SRO) 760, a crucial tax exemption measure for Pakistan's gold export sector, has been delayed, causing concerns among exporters. The SRO, which expired on July 8, 2025, has resulted in shipments getting stuck at the port and potential legal liabilities for exporters [1][2].
Despite assurances from the Commerce Minister Jam Kamal Khan and the Commerce Secretary, the delay is primarily due to procedural hold-ups at the Prime Minister's Office (PMO). The PMO has returned the proposal for reconsideration, prolonging the reinstatement process [1]. A follow-up meeting is scheduled for August 18, 2025, to address the issue [1][2].
SRO 760(I)/2013 offers tax exemptions under Clause 6 for the import of precious metals, gemstones, and other required raw materials, tools, machinery, and equipment for gold jewellery exports. However, discrepancies in the sales tax exemptions under different schemes have complicated matters, contributing to the delay and uncertainty for exporters [1].
Exporters, including those with a 50-kg gold consignment currently stuck at the port, are urging the Minister for Commerce to prioritise the reinstatement of SRO 760 [3]. Jawed Hanif Khan, Chairman of the National Assembly Standing Committee on Commerce, has convened a meeting on August 18, 2025, to discuss the issue [4].
Officials from the Commerce Ministry have given their word that the matter regarding the reinstatement of SRO 760 has been resolved. However, the gold consignment currently stuck at the port is not mentioned as being exempt from the standard 18 percent sales tax [5]. Shabir Ahmad Awan, Convener of the Export Standing Committee of the All Pakistan Small and Medium Gold Jewellery Traders Association (APSGJTA), stated that buyers of Pakistani exporters are considering legal action due to the current situation [6].
In a recent Zoom meeting with gold exporters, the Ministry of Commerce assured that SRO 760 would be reinstated soon [7]. Despite these assurances, exporters remain cautious due to the ongoing delay [1][2]. The reinstatement of SRO 760 is crucial for the smooth operation of Pakistan's gold jewellery export sector.
References: 1. Dawn 2. The Express Tribune 3. Business Recorder 4. The News International 5. Dawn 6. The Express Tribune 7. The News International
The delay in reinstating SRO 760 is causing concern among gold exporters, as the tax exemption measure is essential for the smooth operation of Pakistan's gold jewellery export industry. The reinstatement process has been prolonged due to procedural hold-ups at the Prime Minister's Office.
The gold consignment currently stuck at the port is not exempted from the standard 18 percent sales tax, despite assurances from the Commerce Ministry that the matter has been resolved. This ongoing delay has led exporters to consider potential legal action from buyers.
Assurances from the Ministry of Commerce that SRO 760 will be reinstated soon offer little comfort to exporters, as they remain cautious about the lengthy delay in the reinstatement process. The reinstatement of SRO 760 is crucial for the financial wellbeing of the industry and the country's business and finance sector.
