Govt moves to formalise gold sector under revised policy

The government has moved to transform Bangladesh's gold sector into a legal, recognised and accountable industry through a revised national policy.

Stakeholders and relevant government agencies have been asked to submit their written opinions on the draft Gold Policy 2018 (Revised) 2026 by Sunday, according to a press release.

Commerce Minister Khandakar Abdul Muktadir issued the directive at a meeting on the draft policy held at the Ministry of Commerce in the Secretariat today (6 August).

The meeting, chaired by Commerce Secretary Md Ataur Rahman Khan, was attended by Bangladesh Jewellers' Association (BAJUS) President Enamul Huq Khan, Export Promotion Bureau (EPB) Vice-Chairman Mohammad Hasan Arif, and representatives of the National Board of Revenue (NBR) and Bangladesh Bank.

The commerce minister said the gold sector has long contributed to the economy but has yet to become fully institutionalised due to the lack of an effective policy and regulatory framework.

He said regulators, not just businesses, should share responsibility for the sector's longstanding informal nature.

"We want to bring the sector under a legal and institutional framework," he said, adding that the government aims to regulate it like other industries.

He said formalising the sector would create jobs, increase legal imports, boost government revenue and improve transparency in gold inventories and transactions.

He said businesses would have to pay duties and taxes in line with regulations, while the government would ensure a business-friendly regulatory environment.

He said every stage of the purchase, sale and storage of legally imported gold should be documented to enable regulators to track inventories, sales and sources.

Highlighting gold's economic importance, Muktadir said it is an internationally recognised store of value and noted that many central banks hold gold alongside foreign currency reserves.

He said retaining legally imported gold in Bangladesh instead of allowing it to be smuggled abroad would help preserve value within the domestic economy.

The commerce minister also stressed the need to keep domestic gold prices aligned with international rates to discourage smuggling.

He said duties and taxes should be set with reference to international prices, particularly those in Dubai and other major trading hubs.

Focus on local jewellery production and exports

The draft policy also aims to boost value addition through local jewellery manufacturing and exports.

Muktadir said reasonable duty rates on raw material imports would help local jewellers produce internationally competitive products.

He said the government would examine whether gold could be imported at international prices, processed locally and exported, while taking into account the strong domestic demand for gold jewellery, particularly for weddings and social occasions.

The minister said rising gold prices were putting pressure on consumers and that a rational policy and improved supply system could boost competition and ensure fairer prices.

Before finalising the policy, the government will review the regulatory frameworks of three to four gold jewellery-exporting countries, including India.

The review will examine import procedures, tariffs, inventory management, export incentives and regulatory oversight and compare them with Bangladesh's proposed framework.

The commerce minister also asked the NBR, Bangladesh Bank and other relevant agencies to submit written recommendations on potential risks, implementation challenges and policy issues.

He said the government aims to develop a legal, transparent and sustainable framework for the sector without creating new difficulties.

Officials said the revised policy would be finalised as quickly as possible after reviewing stakeholder feedback.