Gold prices in Pakistan explained: tola, karat, making charges and buy-back
How the Sarafa gold rate is set, tola vs 10 grams, 24K/22K/21K purity maths, why jewellers quote differently, making charges and buy-back.
Work it out with the Gold calculator →
You read “gold Rs 431,536 per tola” in the paper, walk into a jeweller’s and get a different price, and when you sell, you are offered less again. None of this is a trick. It comes down to four sums: the unit (tola or gram), the purity (karat), making charges and the buy-back deduction. This guide takes them one at a time with worked examples at today’s rate. You can check any piece of your own in the gold calculator.
Who sets the daily rate
The rate in the news is announced by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). It is the rate for 24-karat (pure) gold, per tola and per 10 grams, without making charges. On 22 October 2026 it was Rs 431,536 per tola and Rs 369,972 per 10 grams, with silver at Rs 6,086 per tola.
The rate changes every working day. Over the past four weeks it went from Rs 449,336 to Rs 431,536, a fall of 4%. It is not a government price but a traders’ benchmark, and each shop sets its own rate around it.
From the world price to the Sarafa rate
Gold trades worldwide in US dollars per troy ounce (31.1035 grams), so the Pakistani rate follows two things: the world price and the dollar rate. Take 14 October 2026:
- World price: US$4,153 an ounce; SBP interbank dollar: Rs 276.95.
- World value of one tola in rupees = 4,153 × 276.95 × 11.6638 ÷ 31.1035 = Rs 431,322.
- The Sarafa rate that day was Rs 437,836, about Rs 6,514 (1.5%) higher.
That gap is the local premium, and it changes from day to day; we have not seen an official breakdown of what drives it. The principle is clear, though: when the world price falls or the rupee strengthens, the local rate usually falls, and the other way round. That is why moves of several thousand rupees in a day are normal.
Tola, 10 grams, gram and masha
A tola is 180 grains, or 11.6638 grams. The weight was fixed in 1833 and is still the basic unit of the sarafa market. One tola is 12 masha, and one masha is 8 ratti. The 10-gram rate is not a separate price, just the tola rate in another unit: Rs 431,536 ÷ 11.6638 × 10 = Rs 369,979, against the association’s Rs 369,972; the few rupees’ difference is rounding.
When you deal with a jeweller, ask whether the rate is per tola or per 10 grams, and which unit the scale shows. Many shops weigh in grams on a digital scale but quote the rate per tola; the conversion should be done in front of you.
Karat: the purity maths
Karat tells you how many parts out of 24 are gold. Pure gold is very soft, so jewellery is alloyed down to 22, 21 or 18 karat, while bars and coins are usually 24K. The price is a straight proportion: 24K rate × karat ÷ 24. At today’s rate:
| Karat | Purity | Per tola | Per 10 grams | Per gram |
|---|---|---|---|---|
| 24K | 100% | Rs 431,536 | Rs 369,979 | Rs 36,998 |
| 22K | 91.7% | Rs 395,575 | Rs 339,147 | Rs 33,915 |
| 21K | 87.5% | Rs 377,594 | Rs 323,731 | Rs 32,373 |
| 18K | 75% | Rs 323,652 | Rs 277,484 | Rs 27,748 |
So one tola of 21K jewellery holds about 10.21 grams of pure gold. This is the proportional value; a jeweller may set his own rate for lower karats, so ask which karat rate he is applying and have the karat written on the receipt.
Why the jeweller’s rate differs from the Sarafa rate
- Benchmark versus shop: the association rate is a reference for pure metal. A shop quotes from its own buying cost, the local city association’s rate and the time of day.
- Two rates, buying and selling: the jeweller sells higher than he buys back, just like a money changer.
- Karat: the newspaper rate is for 24K; your jewellery is usually 21K or 22K.
- Making charges and tax: the shop price can include making charges and, at a registered jeweller, 3% sales tax.
How making charges work
Making charges pay for design and labour. Jewellers charge them either as a fixed amount per tola or as a percentage of the gold value; light, plain pieces cost less to make than fine, detailed work. There is no official rate, so get the making charge written down separately before you buy.
Example: a 1.5 tola, 21K necklace with making charges of 8% of the gold value (an illustrative rate):
- Gold value = 1.5 × 431,536 × 21/24 = Rs 566,391
- Making charges = 566,391 × 8% = Rs 45,311
- Price before tax = Rs 611,702
What you get back when you sell
On buy-back, the jeweller deducts from the gold value for estimated impurity and wear, and weighs out stones and solder. Making charges are not refunded. If the necklace above is sold back at the same rate with a 5% deduction (illustrative):
- Amount received = 566,391 × (100% − 5%) = Rs 538,071
- Loss from buying and selling straight away = Rs 611,702 − Rs 538,071 = Rs 73,631, about 12% of the price.
That is why, if you are buying gold as savings, a bar or coin with low making charges costs less than jewellery. Some jewellers deduct less when you exchange old jewellery for new; that is each shop’s own policy.
Checklist before you buy
- Have the piece weighed in front of you, and for jewellery with stones, get the gold weight written separately.
- Get the weight, karat, the day’s rate, making charges and tax shown separately on the receipt.
- Ask what the buy-back or exchange deduction will be, and get it in writing when you buy.
- Compare the rate with that day’s Sarafa rate, and check the price in the gold calculator.
Gold and zakat
Jewellery or bars, gold is zakatable wealth, valued at today’s metal price and not at the making charges. At today’s rates the gold nisab (7.5 tola) is Rs 3,236,520 and the silver nisab (52.5 tola) is Rs 319,515. Which nisab to use and how to add up the rest of your wealth is explained in our zakat guide.
Frequently asked questions
Is the gold rate per tola the same as per 10 grams?
No. A tola is 11.6638 grams, so 10 grams is about 0.857 of a tola. On 22 October 2026 the Sarafa association quoted Rs 431,536 per tola and Rs 369,972 per 10 grams for 24-karat gold: the same price in two units.
Why is 22K gold cheaper than 24K?
Because it contains less gold. 22K is 22 parts gold out of 24, about 91.7%, so at a 24K rate of Rs 431,536 a tola of 22K is worth about Rs 395,575. The rest of the metal is usually copper or silver, which adds strength but almost nothing to the price.
Do I get making charges back when I sell jewellery?
No. Making charges pay for the jeweller’s labour and design, and no jeweller refunds them on buy-back. That is why jewellery is an expensive way to save in gold: you lose the making charges plus the buy-back deduction on every round trip.
Is there sales tax on gold jewellery?
Yes, at a reduced rate. Serial 78 of the Eighth Schedule to the Sales Tax Act 1990 sets sales tax of 3% on supply of locally manufactured jewellery (tariff heading 71.13), with no input tax adjustment. It applies when the jeweller is registered for sales tax and issues a tax invoice; ask for one.
Which gold rate should I use for zakat?
Use the value of the gold itself at today’s rate for its karat, not what you paid and not the making charges. Our zakat guide explains the nisab and the rest of the sum, and the zakat calculator does it for you.
Calculators for this guide
- Gold calculatorConvert gold between tola, gram, masha and ratti and work out its value at today’s rate for 24, 22, 21 or 18 karat.
- Zakat calculatorCalculate zakat on gold, silver, cash, bank savings and business stock, with nisab checked against today's silver or gold price.
Sources
- All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) rates for 22 October 2026 (24K per tola and per 10 grams, silver per tola) and the international price of US$4,153 per ounce, as reported by Business Recorder
- State Bank of Pakistan: exchange rates for mark-to-market revaluation, 14 October 2026 (USD interbank reference)
- NIST Special Publication 811, Appendix B.9: grain = 64.79891 mg and troy ounce = 31.1034768 g (exact)
- Tola: 180 grains, fixed by Regulation VII of 1833; 1 tola = 12 masha (Wikipedia, citing Prinsep 1840)
- Sales Tax Act 1990 updated to 30 June 2026 (FBR): Eighth Schedule serial 78, locally manufactured jewellery, 3%, no input tax adjustment
- Making-charge rate (8%) and buy-back deduction (5%) in the worked example are illustrations, not quoted market rates
This guide explains the rules for general information. It is not official, legal or tax advice. Rules change, so check the official source or a qualified professional before acting. See how we check our information.