India's Successful CAD Control Causes spurt on Gold Smuggling in Neighbouring Countries
THE Shanghai Metals Market yesterday reported that while India acquired success in trimming down the current account deficit (CAD) to controllable levels, India's neighbours are concerned over the rise in gold smuggling that has en-routed extensively to their countries now. The senior officials of Bangladesh, Pakistan and Sri Lanka have expressed their alarm on the rising gold smuggling in their countries over the year. The restrictions on gold import to India seems to have triggered the smugglers as they are looking out for new ways to sneak gold through India's neighbours.
It seems these neighbouring countries want guidance from India to curb the issues of both CAD and gold smuggling.
Restrictions in sneaking gold to India had forced the smugglers to invent techniques in routing gold through Pakistan, Sri Lanka and Bangladesh. Smugglers were found to take advantage of importing gold to these countries where the import duty is less than 10 %. Distressed with the surge of gold import, the Sri Lankan Govt. has hiked their import duty to 10 % for the first time. Pakistan has also put a ban on gold import for the second time over the year. Pakistan Govt. in an effort to axe gold smuggling has announced a ban gold import for 30 days. However, there will be no restriction on Gold export from Pakistan.