Billions in Seized Gold and Silver Never Reached SBP 2026. Billions in seized gold and silver never reached SBP despite clear legal rules. Instead of boosting Pakistan’s foreign exchange reserves, these precious metals stayed locked in customs offices for years. Here is what went wrong, who is responsible, and why it matters in 2026.
How Billions in Seized Gold and Silver Never Reached SBP
Gold and silver confiscated by customs authorities across Pakistan were not deposited with the State Bank of Pakistan as required by law.
Official sources revealed that seized precious metals remained stored in lockers at different customs collectorates. This delay prevented these assets from being reflected in the country’s official reserves.
Under existing customs laws, authorities must:
- Take custody of seized gold and silver.
- Conduct laboratory testing.
- Deposit the assets with SBP immediately.
However, this legal process was not followed in many cases.
Role of FBR and Customs Authorities
The Federal Board of Revenue (FBR) recently issued fresh directives to customs enforcement formations. These include airport collectorates and field offices.
The instructions demand:
- Complete details of seized gold and silver.
- Updated inventory records.
- Immediate reporting of locker-held assets.
- Compliance with central bank deposit rules.
This move came after concerns that billions in seized gold and silver never reached SBP and were missing from national financial records.
Why This Issue Is Serious for Pakistan’s Economy
When gold is deposited with SBP, it becomes part of official foreign exchange reserves.
Foreign exchange reserves help:
- Stabilize the Pakistani Rupee.
- Pay for imports.
- Build international investor confidence.
- Strengthen the country’s financial image.
If seized gold stays in lockers, it does not contribute to:
- National reserves.
- Government revenue (national exchequer).
- Official financial reporting.
This creates transparency and governance concerns.
Risk of Tampering and Replacement
Officials disclosed another worrying detail. Some customs formations allegedly showed signs of:
- Tampering with stored gold.
- Possible replacement of original metals.
- Poor inventory tracking systems.
Precious metals stored in lockers for years increase risk. Gold and silver are high-value, easily tradable assets. Without strict oversight, accountability weakens.
Acting on instructions from Syed Shakeel Shah, field formations began consolidating records.
Case Study: Peshawar Collectorate Action
The Customs Enforcement Collectorate Peshawar deposited gold worth approximately Rs. 1.5 billion with SBP.
This step shows:
- Legal compliance is possible.
- Delayed assets can still be regularized.
- Immediate deposit improves reserve reporting.
It also raises a question: How much gold nationwide is still sitting in lockers?
Legal Framework for Seized Gold in Pakistan
Under customs regulations, seized gold and silver must follow a structured process:
| Step | Legal Requirement | Responsible Authority |
|---|---|---|
| 1 | Confiscation after smuggling case | Customs |
| 2 | Laboratory testing and valuation | Authorized Lab |
| 3 | Immediate deposit with SBP | Customs |
| 4 | Reflection in national reserves | SBP |
| 5 | Accounting in national exchequer | Government |
Failure at Step 3 caused the entire breakdown.
Impact on Foreign Exchange Reserves
Pakistan’s foreign exchange reserves fluctuate due to:
- Import payments.
- Debt servicing.
- IMF program requirements.
- Trade deficit pressures.
If billions in seized gold and silver never reached SBP, then official reserves were lower than they could have been.
This affects:
- Credit rating perception.
- International financial negotiations.
- Investor confidence.
Gold is globally recognized as a stable reserve asset. Every kilogram matters.
Governance and Transparency Questions
This issue highlights deeper concerns:
1. Weak Monitoring Systems
Manual record-keeping increases errors.
2. Lack of Real-Time Reporting
No centralized digital tracking system.
3. Poor Internal Audits
Delayed verification allows risks to grow.
4. Accountability Gaps
Responsibility between customs and SBP unclear.
Strengthening digital compliance systems can reduce such incidents.
How FBR’s New Directives May Change Things
The new enforcement drive includes:
- Nationwide inventory audits.
- Mandatory reporting formats.
- Consolidated database submission.
- Direct coordination with SBP.
If implemented properly, this can:
- Increase foreign exchange reserves.
- Improve financial transparency.
- Reduce corruption risks.
- Restore institutional trust.
However, enforcement consistency will determine success.
FAQs
Why were seized gold and silver not deposited with SBP?
Due to administrative negligence and failure to follow legal deposit procedures, many customs offices stored gold in lockers instead of transferring it to SBP.
How much gold has been deposited so far?
The Peshawar collectorate deposited gold worth around Rs. 1.5 billion, but nationwide totals are still under review.
Does seized gold affect Pakistan’s foreign exchange reserves?
Yes. Once deposited with SBP, seized gold becomes part of official reserves and strengthens financial reporting.
What is FBR doing about this issue?
FBR has ordered all customs formations to submit complete records of seized precious metals and ensure compliance with deposit laws.
Can this impact Pakistan’s economy?
Yes. Proper deposit improves reserves, investor trust, and fiscal transparency.
Conclusion
Billions in seized gold and silver never reached SBP, creating serious concerns about transparency, compliance, and economic management. While recent FBR directives show corrective action, the real test lies in enforcement.
