Gold in Pakistan is simultaneously a cultural cornerstone, a savings vehicle, a Zakat obligation, and an increasingly important investment asset. Every significant life event — weddings, births, inheritances — involves gold transactions requiring accurate valuation. This 2026 guide explains the tola-to-gram conversion, karat purity system, making charges, and how to correctly value gold for Zakat, buying, selling, and insurance purposes. ## The Tola — Pakistan's Gold Measurement Standard One tola equals exactly 11.6638 grams — the universal standard for gold measurement across Pakistan and South Asia. When Saraf Associations of Karachi, Lahore, Peshawar, and all major cities announce daily gold rates, the announcement is in Pakistani rupees per tola for 24K pure gold. Converting to per-gram rate: divide the tola rate by 11.6638. If 24K gold is Rs. 280,000 per tola, the 24K rate per gram = Rs. 280,000 / 11.6638 = approximately Rs. 24,004 per gram. This per-gram rate is the foundation for all other calculations — for different karat purities, partial weights, and Zakat valuation. ## Karat Purity — Understanding 24K, 22K, 21K, 18K 24K gold (99.9% pure): Too soft for everyday jewellery — used for investment coins, bullion bars, and electronics. 22K gold (91.67% pure, marked 916): The standard for virtually all Pakistani and Indian gold jewellery. The 8.33% alloy — typically copper and silver — provides hardness for durable jewellery while maintaining rich gold color. 21K (87.5%) and 18K (75%): Less common, found in some imported or white/rose gold pieces. Value calculation by karat: 22K value per gram = 24K rate per gram x (22/24) = 24K rate x 0.9167. For a 20-gram 22K gold bangle when 24K is Rs. 24,000/gram: Metal value = 20g x Rs. 24,000 x 0.9167 = Rs. 4,40,016. ## Making Charges — The Hidden Cost of Gold Jewellery Making charges (ujrat) compensate craftspeople for transforming raw gold into finished pieces. Plain bangles and simple chains: 8-15% of metal value. Filigree and hand-engraved pieces: 25-40%. Designer branded pieces: even higher. Making charges are not recoverable when selling back — the jewellery you bought for Rs. 200,000 (Rs. 170,000 metal + Rs. 30,000 making) will sell back for approximately Rs. 165,000 (97% of metal value only). For pure gold investment where maximum recovery at resale is desired: buy 24K coins or bars from authorized dealers — making charges are 1-3% and resale is much closer to market price than jewellery. ## Gold for Zakat — Annual Valuation at Today's Market Rate For Zakat, gold must be valued at today's market price on your Zakat anniversary date — not at purchase price, not at last year's rate. The process: weigh all gold items in grams; get today's Saraf Association 24K rate; apply the karat purity factor for each piece; calculate total gold value; add to all other zakatable assets; check against silver nisab; pay 2.5% on total if above nisab. Under the Hanafi school (dominant in Pakistan), all gold including daily-worn jewellery is zakatable. Do not omit pieces because they are worn regularly. ## Buying and Selling Gold — Practical Guide When buying: always get an itemized receipt showing weight in grams (verified on certified scale while you watch), karat marking, per-gram price, making charges listed separately, and total price. For purchases above 10 grams, requesting XRF spectrometry testing of purity is reasonable and reputable jewellers will accommodate it. When selling: expect 2-8% below the day's Saraf market rate. For plain 22K gold with no special making, expect approximately 92-97% of metal value. Get quotes from multiple jewellers before selling significant amounts. Daily gold rates: goldrateinpakistan.com, Saraf Association Karachi and Lahore social media pages (announced after morning prayers), and major news portals (Geo, ARY, Dawn). Our calculator uses the rate you enter — always use today's actual Saraf Association rate.