How Is the Gold Rate Set in Pakistan? Tola Price, Sarafa Rates and Making Charges Explained

Every day the gold rate in Pakistan does the rounds: on TV tickers, in WhatsApp groups and on the board outside every jeweller in the Sarafa bazaar. Rs 439,036 per tola, down Rs 1,600. But where does that number actually come from? Why is it a little higher than the world gold price converted at the dollar rate? And why does the bill for a pair of 22K bangles never quite match the tola rate times the weight?

This guide takes the Pakistani gold rate apart, piece by piece, using real figures from 17 October 2026. It also covers the parts of buying gold in Pakistan that confuse almost everyone: making charges, the 3% sales tax, and the kaat a jeweller takes when you sell.

💡 Quick answer: The gold rate in Pakistan is announced each day by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA) for 24K gold per tola (11.664 grams) and per 10 grams. It follows the international gold price in US dollars, converted into rupees, plus a local premium that reflects supply and demand in Pakistan. Jewellery then adds making charges, and larger jewellers add 3% sales tax.

Who Sets the Gold Rate in Pakistan?

The rate you see quoted on the news is set by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), based in Karachi. It announces the rate for 24-karat gold per tola and per 10 grams, usually once a day, along with the silver rate per tola. Sarafa associations and jewellers in Lahore, Rawalpindi, Faisalabad, Peshawar and other cities take that as their benchmark, which is why the headline rate is broadly the same across the country.

On 17 October 2026, for example, APGJSA quoted:

The association works from the world price, which on that day stood at about $4,165 per ounce. You can follow it live on our gold price charts and see the latest rupee equivalent on our gold rate in Pakistan page.

How the Tola Rate Is Built, Step by Step

The Sarafa rate is not plucked out of the air. It moves with three things, in this order.

1️⃣ The international gold price. Gold is traded worldwide in US dollars per troy ounce (31.1035 grams). When the world price moves, the tola rate in Karachi follows within hours. Interest rates, the dollar and central-bank buying drive that price; our guide to what moves gold prices explains how, and our analyst Vaneesa Lenz looks at why gold reacts so quickly to real interest rates in this piece for TalkMarkets.

2️⃣ The rupee-dollar rate. The dollar price per gram is multiplied by the USD to PKR exchange rate, then by 11.664 to get a price per tola.

3️⃣ The local premium (or discount). The Pakistani market adds whatever premium local supply and demand will bear. When physical gold is scarce, or the open-market dollar is dearer than the interbank rate, the premium widens. When demand is weak and people are selling old jewellery, it narrows or turns into a discount.

Here is how those steps worked out on 17 October 2026:

🔍 Put another way, the Sarafa rate that day priced gold as if the dollar cost about Rs 281, roughly Rs 4 above the interbank rate. That gap is the local premium, and it is the one part of the rate that is set in Pakistan rather than in London or New York. It changes from week to week, so it's worth comparing the Sarafa rate with the international rate on our Pakistan gold page before a big purchase.

Why the Rupee Matters as Much as Gold Itself

Because gold is priced in dollars, a weaker rupee pushes the tola rate up even on days when world gold doesn't move. If the rupee slipped from Rs 277 to Rs 290 per dollar, the tola rate would rise by about 4.7%, roughly Rs 20,000, without any change in the international price. That is a big reason why gold in Pakistan has hit record after record in rupee terms.

For the millions of families who buy gold with money earned abroad, a second exchange rate matters too: SAR to PKR, AED to PKR or GBP to PKR on the day the money is sent home. Our USD to PKR guide for overseas Pakistanis covers how to get the best rate on that transfer.

Tola, Masha and Ratti: The Units Behind the Price

Pakistan still prices gold in the traditional units, and they matter when you read a bill or hear a jeweller talk about kaat:

• 1 tola = 11.664 grams (the figure APGJSA uses) = 12 masha = 96 ratti
• 1 masha = 8 ratti, just under 1 gram (about 0.97 g)
• 1 ratti = about 0.12 grams

Jewellers often weigh in grams on a digital scale but still talk in tola, masha and ratti, so ask for the weight in grams on the bill. Our gold calculator converts between grams, tola and ounces at the live rate.

22K, 21K and 18K Gold Rates in Pakistan

APGJSA's headline rate is for 24-karat (pure) gold. Most jewellery in Pakistan is 22K or 21K, and the rate for each is the 24K rate scaled down by purity.

The ratti column is worth a second look. A tola of 22K gold contains 88 ratti of pure gold and 8 ratti of copper, silver or other metals. That is exactly why many jewellers describe 22K as "8 ratti kaat" and 21K as "12 ratti kaat": the kaat is the share of the tola that isn't gold. Charging the 24K rate on a 22K piece and then taking off 8 ratti per tola gives the same answer as charging the 22K rate. Our gold karats guide explains purity in more detail.

Making Charges: The Biggest Variable on Your Bill

Making charges (often called banwai or mazdoori) pay for the craftsman's work: designing, casting, setting and polishing. Unlike the tola rate, they're set by each jeweller and change from piece to piece. You'll usually see them in one of three ways:

• A fixed amount per gram or per tola, which is the most common and easiest to compare between shops.
• A percentage of the gold value, often around 8% to 20% depending on the design.
• A flat price per piece, used mostly for small, light items.

Plain machine-made chains and simple bangles sit at the low end. Heavy bridal sets, kundan work and detailed handmade designs sit at the top. Making charges are also the one part of the price that's genuinely negotiable, especially on heavy pieces and outside the peak wedding season.

⚠️ Stones and pearls aren't gold. On any piece with stones, pearls or lacquer, ask for the net gold weight as well as the total weight. You should pay the gold rate on the gold only. When you sell the piece back, the jeweller will remove or deduct the stones anyway.

Is There Tax on Gold Jewellery in Pakistan?

Often, yes. Since the Finance Act 2022, jewellers whose shops are larger than 300 square feet count as Tier-1 retailers under the Sales Tax Act. They must link their tills to the FBR's point-of-sale system and charge 3% sales tax on locally made gold jewellery. The 3% applies to the full sale price, including making charges.

Smaller shops of 300 square feet or less fall outside the Tier-1 rules, so whether tax appears on your bill depends on where you buy. If you do pay sales tax, ask for an FBR-integrated invoice. You can check it with the FBR's Tax Asaan app.

Two other tax points come up often:

• ✅ Wealth statement. If you file income tax returns, gold you own counts as an asset and belongs in your wealth statement, including gold held by your spouse and dependent children. Keep your invoices, with weight and karat, as proof of what you paid.
• ✅ Zakat. Most scholars in Pakistan use a nisab of 7.5 tolas of gold. At the 17 October rate, 7.5 tolas of 24K gold was worth about Rs 3.29 million, and zakat is 2.5% of the value of qualifying gold. Ask a scholar you trust about your own situation, especially if you also hold silver or cash.

A Worked Example: Two Tolas of 22K Bangles

Let's put it all together. Say you're buying a pair of 22K bangles weighing 2 tolas (23.33 grams) from a Tier-1 jeweller, with making charges of Rs 1,500 per gram.

So bangles "worth" Rs 804,928 at the day's 22K rate cost about Rs 865,000 over the counter, about 7.5% more. At a smaller shop that doesn't charge sales tax, the same bangles would come to Rs 839,920.

What You Get Back When You Sell: Kaat Explained

Now imagine selling the same bangles back the following week, at the same rate. The jeweller pays for the gold only, never for the making charges or the tax. On top of that, most jewellers apply a further kaat: a deduction for solder, wear, polish and the cost of melting and refining. Kaat is usually quoted in ratti per tola.

With an extra kaat of 2 ratti per tola, the deduction on 2 tolas is 4 ratti, about Rs 18,300 at the 24K rate. You would receive around Rs 786,600, about Rs 78,500 (9%) less than you paid.

💡 That is the real cost of owning gold as jewellery. It's why many people buying purely as an investment choose 24K bars and coins, which carry much lower making charges, or gold funds with none at all. Our guides on how to invest in gold and gold ETFs vs physical gold compare the options.

Checking Purity: Hallmarks and Karat Testing

Unlike India, which made hallmarking compulsory for jewellery, Pakistan has no nationwide mandatory hallmarking for gold sold in shops. The Pakistan Standards and Quality Control Authority (PSQCA) sets fineness standards, but most retail jewellery is stamped by the jeweller rather than certified by an independent assay office. A "22K" or "916" stamp tells you what the jeweller claims, not what a lab has verified.

That makes testing worth the small cost on any significant purchase:

• Karat testing (XRF). Most Sarafa bazaars have shops with X-ray fluorescence machines that read the gold content in a minute or two without damaging the piece.
• Get it in writing. Ask for the karat, net weight, rate per tola and making charges to be printed on the invoice, along with the jeweller's buy-back terms.
• Agree the kaat in advance. Ask how many ratti per tola the shop deducts when it buys back its own jewellery. Reputable jewellers will tell you upfront.

Before You Buy: A Quick Checklist

1. Check today's APGJSA rate for 24K and 22K before leaving home, so you can spot an inflated board rate.
2. Ask how making charges are calculated: per gram, per tola or as a percentage. Compare at least two shops.
3. Ask for the net gold weight on anything with stones or pearls.
4. Test the karat on an XRF machine for any large purchase.
5. Agree the buy-back kaat before you pay, not when you want to sell.
6. Get a proper invoice showing weight, karat, rate, making charges and any sales tax, and keep it for your wealth statement.

Is Gold Cheaper in Dubai or Saudi Arabia?

Often it is, which is why so many families ask relatives working in the Gulf to buy jewellery there. Gold rates in Dubai follow the world price without Pakistan's local premium, making charges in the Gold Souk are competitive, and tourists can reclaim the UAE's 5% VAT on eligible purchases. Saudi Arabia charges 15% VAT on jewellery, which narrows the gap.

The saving has to survive the journey home, though. Pakistan Customs limits how much gold jewellery passengers can bring in, so check the current allowance before you buy. Compare the gold price in Dubai and the gold price in Saudi Arabia with the Pakistani rate, and read our guides to buying gold in Dubai and buying gold in Saudi Arabia.

Across the border, India adds a 15% import duty and 3% GST to its gold rate, which works very differently. Our guide on how gold price is calculated in India compares the two approaches, and you can track the gold rate in India live.

Frequently Asked Questions

Who decides the gold rate in Pakistan?

The All Pakistan Gems and Jewellers Sarafa Association (APGJSA) announces the daily rate for 24K gold per tola and per 10 grams. Jewellers across Pakistan use it as their benchmark.

How is the gold rate in Pakistan calculated?

The international gold price in US dollars per ounce is converted to rupees at the dollar rate, divided by 31.1035 to get a price per gram and multiplied by 11.664 for a tola. The Sarafa association then adds a local premium or discount that reflects supply and demand in Pakistan.

Why is the gold rate in Pakistan higher than the international price?

Because of the local premium. On 17 October 2026 the Sarafa rate was about Rs 6,400 per tola (1.5%) above the world price converted at the interbank dollar rate. The premium widens when physical gold is scarce or the open-market dollar is expensive, and it can shrink or turn into a discount when demand is weak.

How many grams are in a tola?

One tola is 11.664 grams, the figure APGJSA uses for its daily rates. A tola is also 12 masha or 96 ratti.

How do I calculate the 22K gold rate from the 24K rate?

Multiply the 24K rate by 0.9167, since 22K gold is 22/24 pure. For 21K, multiply by 0.875, and for 18K, by 0.75.

What is kaat in gold?

Kaat is a deduction, usually quoted in ratti per tola. It reflects the non-gold metal in jewellery (8 ratti per tola for 22K) plus, when you sell, extra deductions for solder, wear and refining. Always ask what kaat a jeweller will apply when buying back before you buy.

Is there sales tax on gold jewellery in Pakistan?

Jewellers with shops larger than 300 square feet are Tier-1 retailers and charge 3% sales tax on locally made jewellery, including making charges. Smaller shops fall outside those rules, so the tax depends on where you buy.

Is gold hallmarking mandatory in Pakistan?

No. Pakistan doesn't have a nationwide mandatory hallmarking system for jewellery sold in shops, so purity stamps are usually the jeweller's own. For a large purchase, have the karat tested on an XRF machine in the Sarafa bazaar.

Final Thoughts

Once you know how it's built, the gold rate in Pakistan becomes much easier to read. The world price and the rupee do most of the work, the Sarafa premium adds a smaller local slice, and the rest of your bill comes down to making charges, sales tax and the kaat you'll face when you sell. Of those, making charges and kaat are the two numbers worth negotiating, so ask about both before you pay.

Follow the gold rate in Pakistan live with 24K, 22K, 21K and 18K prices per tola, keep an eye on the rupee against the dollar, and see where prices might head in our gold price forecast for 2026.

For related reading, see What Moves Gold Prices?, Is Gold a Good Inflation Hedge? and How to Invest in Gold.

Disclaimer: This article is for informational purposes only and does not constitute financial, tax, legal or religious advice. Gold rates, exchange rates and tax rules change, and the figures quoted here are examples from October 2026. Always check the current rate and the rules that apply to you before buying or selling gold.