Is gold a good investment in Pakistan? Gold against savings, PSX and dollars

Gold investment in Pakistan has beaten inflation over 10 years, but the one-year result depends on when you start counting. 24k gold went from Rs51,500 per tola on 11 Jul 2016 to Rs437,836 on 14 Oct 2026, about 8.5 times, while consumer prices roughly tripled. Over one year the answer depends on the start date: gold on 14 Oct 2026 was 4.2% lower than on 17 Oct 2025, while inflation to September 2026 was 10.3%.

Is gold a good investment in Pakistan?

We don’t give a yes or no. The table shows what gold did against the main alternatives, each measured between the dates given. Past returns don’t predict future ones: gold, shares and the dollar can all fall from here.

These are which.pk’s calculations from the sourced figures. The start and end dates don’t line up exactly, because each series is published differently, and October 2026 CPI wasn’t out yet. The dollar start points are SBP’s mark-to-market rates; SBP’s archive has no files after June 2026, so the 14 Oct 2026 end point is the interbank close of Rs276.95 reported by Bloom Pakistan. PBS doesn’t print the August 2016 CPI level, so we worked it back from its published August-on-August changes. The KSE-100 figures use index levels only; we couldn’t confirm whether they include reinvested dividends.

After inflation, gold was worth about 2.87 times as much over the 10-year window and 1.87 to 1.89 times over the 5-year one. Over the latest year it lost about 13% in real terms, measured from 17 Oct 2025.

Gold vs PSX: which did better?

Over the 10-year window above, gold rose about 8.5 times and the KSE-100 index about 4.4 times, from 37,783.54 at end-June 2016 to 164,776.44 on 13 Oct 2026. Over 5 years they were close: gold +271% to +274%, the KSE-100 +257%. Over the last year both were roughly flat.

For a fixed return instead, National Savings rates from 1 Oct 2026 are 11.31% on 12-month Short Term Savings Certificates, 11.80% on 10-year Defence Savings Certificates and 10.00% on the Savings Account. Money market mutual funds returned 9.27% to 11.05% a year (annualised) over the 365 days to 31 Aug 2026. These are current rates, not 5 or 10-year histories; we didn’t compile those. See National Savings certificates and how to invest in PSX.

What is the gold rate history in Pakistan per tola?

These are 24k rates per tola as reported in news coverage of the jewellers’ associations on each date.

International gold hit a record $5,594.82 an ounce on 29 Jan 2026 and had fallen about 25% by 23 Mar 2026. On 14 Oct 2026 the local rate was 14.9% below the Rs514,662 reported on 24 Jan 2026.

The local price follows two things: the world gold price and the rupee. APSGJA sets its rates using interbank exchange rates, and Dawn cited the rupee’s fall against the dollar as pushing local gold up in 2021.

What are the gold investment options in Pakistan?

Meezan Gold Fund is the only open-end gold mutual fund on MUFAP’s August 2026 ranking, where it is classed as a Shariah-compliant commodities fund. Its yearly returns, as published by Al Meezan, were -0.65% in FY21, 24.83% in FY22, 52.45% in FY23, 5.38% in FY24 and 42.72% in FY25. Assets in the category rose from Rs10,264 million in July 2026 to Rs10,997 million in August. MUFAP’s category returns are net of the fund’s expense ratio but not of sales loads.

We couldn’t confirm the fund’s minimum investment or whether it is taking fresh money now; ask Al Meezan before you plan around it. For how mutual funds and voluntary pension schemes work, see mutual funds in Pakistan.

PMEX (Pakistan Mercantile Exchange) trades a 1 tola gold futures contract and a Milli Tola contract of 0.001 tola. Under its 2024 specifications:

• The gold is at least 995.0 fine, in 10 tola bars, and prices are quoted per tola ex-Karachi, including taxes and duties.
• Buyers pay at least 25% of the value as cash margin and keep a 15% maintenance margin. Sellers must hold the gold with PMEX, and short selling isn’t allowed.
• Prices can move at most 5% a day from the previous settlement price. Trading runs Monday to Friday, 5 am to 2 am PST.

We read these from archived 2024 copies, because pmex.com.pk blocks automated access; check current terms with your broker. Dawn’s Prism notes that buying through PMEX is more expensive because of regulation and tax, without giving figures.

How to invest in gold in Pakistan with little money?

The smallest unit we could confirm is PMEX’s Milli Tola contract, one thousandth of a tola. On 14 Oct 2026, a thousandth of the APSGJA rate was about Rs438, before the margin rules and any other costs. A mutual fund is the other route, but we couldn’t confirm Meezan Gold Fund’s minimum investment from the fund’s own documents.

Do you lose money when you sell gold jewellery?

Usually some. Making charges and wastage are part of what you pay for jewellery, and you lose them when you sell, Dawn’s Prism reported. Neutral sources didn’t give a typical percentage for making charges or for the jeweller’s deduction on buy-back, so we don’t quote one. Ask the jeweller for both in writing before you buy.

What is the gold tax rate in Pakistan?

Under the Income Tax Ordinance, as amended up to 30 June 2026:

• Jewellery and gold coins: a gain on selling them is a capital gain under section 37, worked out as sale price minus cost. Most personal-use belongings are not capital assets, but jewellery, coins and medallions are listed exceptions.
• No loss relief: section 38(5) says a loss on selling jewellery or a coin isn’t recognised.
• No discount for holding long: the old rule that taxed only three quarters of the gain on assets held over a year was removed by the Finance Act, 2022.
• PMEX futures: these count as derivative products under section 37A, the securities capital gains section, whether or not they settle with physical gold.
• Wealth statement: every resident individual who files a return must file a wealth statement with it, covering all assets, including those of a dependent spouse, minor children and other dependents.

We didn’t confirm the rate that applies to a jewellery gain, or any sales tax jewellers charge, so check with a tax adviser. Compare gold with the other choices in investment options in Pakistan.

More guides: investment options compared, mutual funds, how to invest in PSX, National Savings certificates, Money.