The government launched an initiative to transform Bangladesh’s gold sector from an informal trade into a legal, recognised and accountable industry. As part of the process, stakeholders and relevant government agencies have been asked to submit their written opinions on the draft Gold Policy 2018 (Amended) 2026 by Sunday.

Commerce Minister Khandaker Abdul Muktadir issued the directive at a meeting on the draft policy held on Thursday in the conference room of the commerce ministry at the Secretariat.

Addressing the meeting, the commerce minister said that despite the gold sector long playing an important role in the country’s economy, it has failed to become fully institutionalised due to the absence of an appropriate policy and regulatory framework. He said the responsibility for this situation should not be placed solely on businesses, adding that weaknesses among regulatory authorities must also be taken into account.

“We need to change our mindset,” he said. “It’s not appropriate for a recognised business sector to remain outside the formal framework for such a long time. This situation has arisen because the necessary initiatives weren’t taken in time. We now want to bring the sector under a legal and institutional framework.”

The minister said the government’s objective is to enable the gold industry to operate like any other formal industrial and commercial sector in the country. Formalising the industry, he noted, would help create employment, facilitate legal imports, increase government revenue and improve transparency in gold reserves and transactions.

He said businesses would be required to pay duties and taxes in accordance with the law, while the government would ensure a business-friendly regulatory environment. Every stage of the purchase, sale and storage of legally imported gold, he added, must be properly documented. Regulatory authorities should be able to regularly monitor the quantity of gold held by businesses, the volume of sales and the sources from which the gold has been procured.

The commerce minister also highlighted the economic significance of gold, noting that one of the primary functions of money is to serve as a store of value. Gold, he said, is similarly recognised worldwide as a reliable store of value. But he stressed the importance of preventing an abnormal gap between domestic and international gold prices, warning that such disparities create economic incentives for smuggling.

“If the local price of any commodity is significantly lower than that in neighbouring or nearby countries, it creates a strong incentive for illegal cross-border trafficking,” he said.

The minister added that the proposed policy is not limited to regulating gold imports but also seeks to promote value addition through the manufacture and export of gold jewellery. He said that allowing the import of raw materials at reasonable and minimal duty rates would enable local artisans and entrepreneurs to produce competitive products for international markets.

“We must first determine whether gold can be imported at international market prices, processed through value addition in Bangladesh and then exported,” he said. “Secondly, there’s substantial domestic demand for gold in Bangladesh. Given its widespread use, particularly during weddings and other social occasions, the purchasing capacity of ordinary consumers should also be taken into consideration in the policy.”

The commerce minister noted that the steadily rising gold price has placed an increasing financial burden on consumers. He said that establishing a rational policy framework and an efficient supply system would enhance market competition and enable consumers to purchase gold at more reasonable prices.

He also said that, before finalising the draft policy, the government would review the policy and regulatory frameworks of three to four major gold jewellery-exporting countries, including India. A comparative assessment will be conducted of those countries’ import procedures, tariff structures, inventory management systems, export incentives and regulatory oversight against Bangladesh’s proposed policy framework.

The minister called on the National Board of Revenue (NBR), Bangladesh Bank and other relevant agencies to submit written opinions identifying potential challenges, risks and implementation issues related to the proposed policy.

He stressed that the government’s objective is not to create new difficulties for the sector by introducing the policy. “All the stakeholders involved are experienced and well aware of the industry’s realities,” he said. “We must work together, placing the country’s interests above all else, to develop a framework that transforms the gold sector into a legal, transparent and sustainable industry.”

The meeting was informed that, after compiling feedback from stakeholders, another consultation may be held if necessary. The government will then move forward with finalising the revised Gold Policy at the earliest opportunity.