How Jewellery Shops Price Gold in Pakistan
Karat and purity, the daily rate, making charges and wastage: how a jewellery bill is built, and how to show each part clearly to the customer.
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Gold jewellery in Pakistan is priced from three parts: the gold itself, the making charge (mazdoori) and the wastage allowance. Tax is added on top where it applies. Getting each part right, and showing it clearly on the bill, is what keeps a customer coming back.
Karat and purity
Purity is measured in karats. Pure gold is 24 karat; lower karats are alloys with other metals.
| Karat | Gold content |
|---|---|
| 24K | 99.9% |
| 22K | 91.67% |
| 21K | 87.5% |
| 18K | 75% |
When a customer asks for 22K jewellery, 22 parts in 24 of its weight are gold.
The daily rate
The gold rate moves with the international price and the rupee. Jewellers set the day's rate per tola (11.66 grams) or per 10 grams for each karat and price every sale from it.
Making charges
Making charges pay for the work. They are set either as a percentage of the gold value or as a fixed amount per tola or per gram, and handmade or detailed pieces cost more to make than machine-made ones.
Wastage
Wastage covers the gold lost while making a piece. It is usually added as a percentage of the weight, so the customer pays for slightly more gold than the finished weight.
Putting it together
- Gold value = weight × today's rate for that karat.
- Wastage = gold value × wastage percentage (or extra weight × rate).
- Making = a percentage of the gold value, or a rate per tola or gram.
- Add tax where it applies, then total.
In Nafaa a jeweller sets today's gold and silver rate once, and each piece carries its metal, weight and stones, so the counter prices from the current rate.