The Bangladesh Jeweller’s Association (Bajus) has sounded the alarm on the soaring smuggling of gold and diamonds into the nation. They disclosed that an average of Tk 250 crore worth of these precious items sneak into Bangladesh each day.
During a press conference held ahead of the budget announcement at Bajus’ office in Dhaka’s Bashundhara City Shopping Complex, officials urged for more robust policy backing and government intervention to tackle this illicit trade. They stressed the urgency for law enforcement to step up efforts to curb smuggling activities.
Md. Ripnul Hasan, vice-president and chairman of Bajus’ standing committee on smuggling and law enforcement, revealed that around Tk 80,300 crore worth of gold and Tk 10,950 crore worth of diamonds are smuggled into Bangladesh annually. This underground trade inflicts significant economic losses, including dwindling remittances and escalating money laundering.
Bajus leaders emphasized the necessity for the government to take resolute action against the yearly smuggling of approximately Tk 91,250 crore, accentuated by the ongoing US dollar crisis.
The association pointed out that gold smuggling primarily occurs through the borders of 30 districts adjacent to India, especially in Meherpur, Kushtia, Chuadanga, Jhenaidah, Jashore, and Satkhira, with much of the contraband routed to India.
To counteract this, Bajus proposed various measures, including intensified operations by law enforcement agencies, the establishment of dedicated government monitoring cells in collaboration with Bajus, amendments to baggage rules to deter gold bar imports, reduction of tax-free allowances for gold ornaments, limiting the number of ornaments passengers can bring, and allowing passengers to avail the baggage rule only once a year.
Despite these recommendations, some industry insiders, speaking anonymously to UNB, cautioned against an abrupt crackdown on gold smuggling, fearing potential destabilization of the gold market. They advocated for a unified and straightforward policy for importing gold and ornaments to mitigate risks.
With over 1.5 crore Bangladeshi migrants abroad, notably in the Middle East, there is substantial demand for high-quality gold imports into the country. Implementing a smart and simple policy could curb smuggling significantly, noted one insider.