Understanding the karat system {#karat-system}
Gold purity in Pakistan is measured in karats (K). Pure gold is 24K. All other karats are alloys with silver, copper, or nickel.
| Karat | Purity | Common uses |
|---|---|---|
| 24K | 99.99% | Bars, coins, investment |
| 22K | 91.67% | Bridal sets, traditional jewelry |
| 21K | 87.50% | Middle-eastern designs |
| 18K | 75.00% | Diamond-mounted, modern designs |
| 14K | 58.33% | Rarely used in Pakistan |
Key point: When customers say "22K jewelry", they mean the pure gold content is 91.67% of total weight.
Getting daily gold rates {#daily-rate}
Gold rates in Pakistan change hourly based on:
- International spot price (COMEX)
- USD/PKR exchange rate
- Local demand and import duties
Official sources for daily rates:
- All Pakistan Sarafa Association (updated every hour)
- Karachi Sarafa Bazaar (physical + WhatsApp)
- Nafaa's live gold API (real-time, integrated in POS)
As of August 2026, indicative rates per tola:
- 24K: PKR 285,400
- 22K: PKR 261,600
- 21K: PKR 249,700
- 18K: PKR 214,050
Making charges formula {#making-charges}
Making charges (مزدوری) vary by design complexity:
| Category | % of gold value |
|---|---|
| Plain bangles, chains | 8-12% |
| Machine-made rings | 10-15% |
| Bridal sets (handcrafted) | 15-25% |
| Custom kundan/meenakari | 25-40% |
Formula:
Making = (Gold Weight × Current Rate) × Making %
Example: Bridal necklace, 8 tola 22K, 18% making
- Gold value: 8 × 261,600 = PKR 2,092,800
- Making: 2,092,800 × 0.18 = PKR 376,704
Handling wastage {#wastage}
Wastage (پانی) is the loss during manufacturing:
| Item type | Wastage % |
|---|---|
| Chains (mechanized) | 2-3% |
| Rings, bracelets | 3-5% |
| Traditional handmade | 5-8% |
| Kundan/enameled | 8-12% |
Formula:
Effective weight = Nominal weight × (1 + Wastage %)
For our bridal necklace example, add 6% wastage:
- Effective: 8 × 1.06 = 8.48 tola
- Gold cost: 8.48 × 261,600 = PKR 2,218,368
GST on gold in Pakistan {#gst}
As of 2026, GST on gold jewelry:
- Gold value component: 3% (reduced rate for gold)
- Making charges: 17% standard GST
- Diamond/stones: 17% standard GST
Full calculation on our example:
- Gold cost: PKR 2,218,368
- Making: PKR 376,704
- GST on gold: 2,218,368 × 0.03 = PKR 66,551
- GST on making: 376,704 × 0.17 = PKR 64,040
- Total = PKR 2,725,663
Complete pricing example {#example}
Item: 22K bridal set (necklace + earrings + tikka) Weight: 12 tola nominal Making: 20% Wastage: 7%
| Line item | Calculation | Amount (PKR) |
|---|---|---|
| Gold weight (effective) | 12 × 1.07 | 12.84 tola |
| Gold value | 12.84 × 261,600 | 3,358,944 |
| Making charges | 3,358,944 × 0.20 | 671,789 |
| GST on gold (3%) | 3,358,944 × 0.03 | 100,768 |
| GST on making (17%) | 671,789 × 0.17 | 114,204 |
| TOTAL | 4,245,705 |
Rounded final: PKR 42.5 lakh
How Nafaa automates this
Every jewelry invoice in Nafaa:
- Pulls live gold rate from API (updates every 15 min)
- Applies your default making % (customizable per item type)
- Adds configured wastage (per manufacturing method)
- Auto-calculates GST (split correctly between gold & making)
- Generates FBR-compliant invoice with QR code
- Prints in Urdu + English
Manual pricing time: 8-12 minutes per invoice. Nafaa: 90 seconds — with zero math errors.
Over 340 jewelry shops in Pakistan trust Nafaa for pricing, including Karachi's Zeenat Jewellers (from PKR 42L → 68L/month revenue after switching).
Rates and formulas updated August 2026. Consult a chartered accountant for FBR filing.
Have questions about this article? Reach out to Fatima on WhatsApp — they'll personally respond.