The caretaker government has constituted a task force consisting of law enforcement and intelligence agencies for decisive action against the “gold mafia” and smuggling of precious metals, state-run Radio Pakistan reported on Friday.

A major crackdown has already been initiated against elements involved in illegal activities in the bullion market, it said.

According to details, the task force has prepared lists of those involved in gold smuggling.

Apart from this, the government has also started work on an emergency basis to bring the gold dealers into the tax net and to computerise buying and selling of the yellow metal.

As reports emerged that law-enforcement personnel were conducting a crackdown against some sections of the market, traders have refrained from issuing bullion rates in the last three days.

The price of 24-carat gold had closed at Rs215,000 per tola on Tuesday, September 12, according to rates shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA) back then.

The development comes as the caretaker government initiated a large-scale crackdown against illegal economic activities such as smuggling and hoarding. It resorted to take action against all those involved in speculations in different markets, which resulted in some positive outcomes.

“We will make an example of all those, even it’s a big fish, involved in any kind of smuggling and hoarding.

“We will work together for the betterment of the country,” Caretaker Interior Minister Sarfraz Bugti had said on Sunday.

Gold prices in Pakistan closely follow trajectory of the US dollar and international rates of the commodity as the country remains a net importer of the precious metal.

The crackdown by the government has resulted into Pakistani rupee’s appreciation, which was followed by gold prices as the per tola price of the yellow metal witnessed a steep decline of over Rs30,000 during the last week.

“Investors move toward gold amid rupee’s freefall, but there has been speculation in gold rates as well,” a local trader told Business Recorder. “An artificial increase in demand of gold was also being created to give a push to its rates amid rupee’s depreciation.”