How far the sarafa rate sits above the world metal
The table above shows the Karachi sarafa rate for one tola of 24 karat gold, the world price of the same gold converted at today's rupee, and the gap between them. The gap is the amount by which the Karachi rate exceeds the world metal, and it is set in Karachi, not in London. It exists because gold is imported into Pakistan, and the import cost is borne locally.
The sarafa against the world metal
One tola and other weights in Karachi, against the world price of the gold they contain.
| Weight, 24K | Sarafa rate | World metal | Sarafa above the world |
|---|---|---|---|
| 1 gram | Rs 35,151 | Rs 34,491 | Rs +661 |
| 10 grams | Rs 351,515 | Rs 344,905 | Rs +6,610 |
| 1 tola | Rs 410,000 | Rs 402,291 | Rs +7,709 |
| 1 troy ounce | Rs 1,093,333 | Rs 1,072,775 | Rs +20,558 |
Close of: 31.10.2026
What the columns show
The first column is the Karachi sarafa rate for one tola of 24 karat gold. The second column is the world price of gold in US dollars per troy ounce, converted to rupees per tola using today's rupee. The third column is the gap between the two, expressed in rupees per tola. The world figure comes from one source for the gold price and another for the rupee, and they are multiplied.
A positive gap means the Karachi rate is above the world metal. That is the normal state, because gold is imported and the import cost is added. A negative gap is rare and means the rupee or the world price moved faster than the sarafa re-fixed.
What sits inside the gap
The gap contains import duties and restrictions, the open-market dollar, and dealer margin. Import duties are set by the government and are a fixed cost per tola. The open-market dollar is the rate at which importers actually buy dollars, which is usually weaker than the interbank rate. Dealer margin is the profit the importer and the sarafa add on top.
These costs are local, not global. The world price of gold is the same everywhere, but the cost of getting it into Pakistan and selling it in Karachi is not. That is why the Karachi rate is above the world metal, and why the gap moves when the rupee or the duties change.
Why the gap can turn negative
The gap can turn negative when the rupee appreciates sharply or the world price drops suddenly. The sarafa re-fixes once a day, and if the world price falls between fixes, the Karachi rate may be above the new world price for a few hours. A negative gap means the Karachi rate is below the world metal, which is an arbitrage opportunity for an importer who can buy at the world price and sell at the Karachi rate.
A negative gap is usually temporary, because the association adjusts at the next fix. But it shows that the gap is not a fixed premium; it is a moving spread that depends on the timing of the fixes and the speed of the rupee and the world price.
What the gap cannot tell you
The gap cannot tell you whether gold is cheap or expensive in Pakistan. A wide gap may mean high import duties, a weak rupee, or a large dealer margin, but it does not tell you which. A buyer who wants to know the cause of a wide gap must look at the government's duty schedule, the open-market dollar, and the sarafa's own margin.
The gap also cannot tell you the retail price. A jeweller adds making charges, wastage and margin on top of the sarafa rate, and those are not part of the gap. The gap is a wholesale spread, not a retail markup.
What a buyer should do with the gap
A buyer who sees a wide gap should ask the jeweller to itemise the metal price per tola, the making charge, and the wastage separately. The metal price should be close to the sarafa rate, and the gap is already inside that rate. If the jeweller quotes a metal price far above the sarafa rate, the buyer is paying a double margin.
The gap is a benchmark for the wholesale market, not a retail price. A buyer who wants to know if a piece is fairly priced should compare the jeweller's metal price to the sarafa rate, and then judge the making charge separately.
Why the gap is set in Karachi
The gap is set in Karachi because that is where the sarafa fixes its rate and where the importers operate. The world price is set in London, but the cost of getting gold to Karachi is local. The gap is the difference between the two, and it is a measure of Pakistan's local costs.
A reader who wants to understand the gap should not compare the Karachi rate to the London fix directly, because the two are in different currencies and different units. This site converts the world price to rupees per tola using today's rupee, so the comparison is on the same basis.
At a glance
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Questions about today's rate
What is the gap above the world metal?
The gap is the difference between the Karachi sarafa rate for one tola of 24 karat gold and the world price of the same gold converted at today's rupee. It exists because gold is imported into Pakistan, and the import cost is borne locally.
Why is the gap positive most of the time?
The gap is positive because import duties, the open-market dollar, and dealer margin are added to the world price. These costs are local to Pakistan, so the Karachi rate is normally above the world metal.
What does a negative gap mean?
A negative gap means the Karachi rate is below the world metal. It can happen when the rupee appreciates or the world price drops faster than the sarafa re-fixes. It is usually temporary.
Where does the world price come from?
The world price is read in US dollars per troy ounce from one source, and the rupee from another. The two are multiplied to give a world price in rupees per tola. Neither is taken from the page that carries the sarafa rate.
Can I use the gap to decide when to buy gold?
The gap is a wholesale spread, not a retail price. A buyer should compare the jeweller's metal price to the sarafa rate, and then judge the making charge separately. The gap itself does not tell you if gold is cheap or expensive.
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