Every morning, jewellers in Karachi, Lahore and Islamabad update one number that millions of Pakistanis check: the gold rate per tola. It can look random, rising Rs 3,000 one day and dropping Rs 2,000 the next. In reality the price follows a simple formula. Once you understand it, you can estimate tomorrow’s rate yourself and spot when a jeweller is quoting too high.
The Four Ingredients of the Gold Rate
1. International spot price (USD per troy ounce)
Gold is traded worldwide in US dollars per troy ounce (31.1035 grams). This spot price is set by trading in London, New York and Asian markets around the clock. When you hear “gold hit a record high,” this is the number being discussed. Pakistan imports nearly all of its gold, so this global price is the foundation of the local rate.
2. The dollar rate (USD to PKR)
Because gold is priced in dollars, the rupee’s value matters as much as gold itself. If gold stays flat internationally but the rupee weakens by 1%, the local gold rate rises by roughly 1%. Jewellers usually look at the open-market dollar rate rather than the interbank rate, because that is closer to what importers actually pay.
3. Unit conversion (ounce to tola)
Pakistan sells gold by the tola, which equals 11.6638 grams. One tola is 0.375 of a troy ounce (11.6638 ÷ 31.1035). Use our tola to gram converter for any other weight.
4. Local premium (sarafa margin)
The All Pakistan Gems and Jewellers Sarafa Association publishes the reference rate each day. It usually sits slightly above or below the pure converted price, reflecting import costs, local demand, supply shortages and wedding-season buying. This gap is called the premium (or discount when local prices are lower).
The Formula
24K rate per tola = Spot price (USD/oz) × USD/PKR × 0.375 + premium
24K rate per gram = Spot price (USD/oz) × USD/PKR ÷ 31.1035 + premium per gram
24K rate per 10 grams = rate per gram × 10
Worked Example
The figures below are illustrative, chosen to be close to recent market levels, to show how the maths works.
| Step | Calculation | Result |
|---|---|---|
| Spot gold | Given | $4,150 / oz |
| Dollar rate | Given | Rs 282 |
| Price per ounce in PKR | 4,150 × 282 | Rs 1,170,300 |
| Price per tola | 1,170,300 × 0.375 | Rs 438,863 |
| Add premium | + Rs 2,000 | Rs 440,863 |
That lands within a few hundred rupees of the actual sarafa rate. Check today’s real figure on our live gold rate page.
How 22K, 21K and 18K Rates Are Worked Out
Lower-karat gold contains other metals (usually copper and silver) for strength. Its price is the 24K rate multiplied by its gold content:
| Karat | Gold purity | Multiply 24K rate by | Example (24K = Rs 440,000) |
|---|---|---|---|
| 24K | 99.9% | 1.000 | Rs 440,000 |
| 22K | 91.67% | 0.9167 | Rs 403,348 |
| 21K | 87.5% | 0.875 | Rs 385,000 |
| 18K | 75% | 0.750 | Rs 330,000 |
See the full breakdown in our gold karat difference guide, or the dedicated pages for 22K, 21K and 18K rates.
Why the Jeweller’s Price Is Higher Than the Rate
The published rate is for raw gold. When you buy jewellery, the bill also includes:
- Making charges (mazdoori): labour cost, charged per tola or as a percentage. See our making charges guide.
- Wastage or polish: some shops add a small weight for gold lost during crafting.
- Stones and kundan: these should be priced separately, never at the gold rate.
Our gold price calculator lets you add making charges to see the real final price.
Why Rates Can Differ Between Cities
Karachi’s sarafa rate is the national reference, but smaller markets sometimes add a few hundred rupees for transport and lower volume. Check your city: Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, Multan, Peshawar and Quetta.
Frequently Asked Questions
Who decides the gold rate in Pakistan?
The All Pakistan Gems and Jewellers Sarafa Association announces a daily reference rate based on international prices and the dollar rate. Jewellers across the country follow it.
Why did gold rise in Pakistan when the world price fell?
Usually because the rupee weakened against the dollar on the same day, or local supply was tight, raising the premium.
Is the tola rate for 24K or 22K?
The headline rate is normally for 24K. Most jewellery in Pakistan is 21K or 22K, so it is priced lower per tola before making charges.
How many grams are in one tola?
One tola is 11.6638 grams. Ten grams is about 0.857 tola.
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