The price of gold declined by Rs10,500 per tola as it hit Rs222,300 in the domestic market of Pakistan on Wednesday.

Similarly, gold 10 grammes declined by Rs9,200 as it reached Rs190,586 in the local market.

The decline in the value of the yellow metal came after the rupee rebounded in the open market. The rupee strengthened by Rs7 against the dollar in the open market.

It also showed slight gains in the interbank foreign exchange market as it increased by 12 paisas against the dollar.

It is pertinent to mention that the recovery in the value of the rupee was recorded after reports claimed that the government has geared up for a crackdown against people hoarding and smuggling foreign currencies.

The matter also came up in Army Chief General Asim Munir’s meeting with traders in Karachi a day earlier, where businessmen complained that the gap between the dollar’s interbank and open market rate and its spiralling value were creating uncertainty for businesses.

The State Bank of Pakistan has also decided to introduce structural reforms in the Exchange Companies’ sector to strengthen governance, internal controls, and compliance culture in the sector.

The SBP wants banks actively engaged in foreign exchange business to establish wholly owned Exchange Companies to cater to the legitimate foreign exchange needs of the general public, a statement by the central bank said.