The Hidden Risk of Buying Ancient Coins from Pakistan: What Every Collector Should Know

The Hidden Risk of Buying Ancient Coins from Pakistan: What Every Collector Should Know

Every coin collector knows the thrill of spotting something special — a piece of history that seems to bridge millennia. Recently, I came across a group of striking “Greek-style” silver drachms: beautifully struck, showing a bearded ruler in profile and, on the reverse, a seated deity holding a sceptre. At first glance, they appeared to be Greek, but in reality, they were Indo-Greek or Indo-Parthian drachms, minted between 100 BC and 100 AD in what is now Pakistan and Afghanistan.

These coins are remarkable survivors of history. They were born from the cultural fusion that followed Alexander the Great’s eastern campaigns, when Hellenistic art blended with local traditions. Many bear Greek inscriptions on one side and Kharosthi or Aramaic script on the other — a symbol of two worlds meeting through trade, conquest, and belief.

But as fascinating as these coins are, they also sit at the intersection of a very modern problem: the legality of international coin trading.

Pakistan’s strict export laws on coins

Few collectors realise that Pakistan prohibits the export and import of coins — old or new — without explicit authorisation.
Under the State Bank of Pakistan’s Foreign Exchange Manual (Chapter XVIII):

“The export or import of Pakistani or foreign coins and currency, by post or otherwise, is prohibited and liable to confiscation.”

And under Section 238 of the Pakistan Penal Code (Act XLV of 1860):

“Whoever imports into or exports from Pakistan any coin in contravention of law shall be punished with imprisonment up to ten years.”

While the wording targets currency smuggling and financial crime, it’s broad enough to include ancient coins, meaning even historical artefacts can fall under these restrictions. As a result, UK and EU auction houses and numismatic dealers refuse to handle coins known to have originated from Pakistan unless clear, dated export documentation is provided.

International law and the UN/UNESCO framework

This national law is reinforced internationally by the 1970 UNESCO Convention on the Prohibition of Illicit Import, Export and Transfer of Cultural Property, ratified by both Pakistan and the United Kingdom. The Convention obliges member states to prevent and return cultural objects exported without permission.

Additionally, UN General Assembly Resolution 76/16 (2021) classifies the trafficking of cultural property as part of transnational organised crime. That means customs agencies, museums, and auction houses are legally bound to act if an item is suspected to have left its country of origin illegally.

Even if a coin appears openly for sale online, that doesn’t guarantee its legality — the burden of proof lies with the buyer.

When a deal feels off — payment red flags

When I contacted the seller of these coins, they offered to complete the transaction through Western Union — another major red flag. Wire transfers like Western Union provide no buyer protection and are frequently used in grey-market or fraudulent transactions.

If you’re ever considering a cross-border purchase:

  • Never send full payment upfront via wire transfer.

  • Use PayPal Goods & Services (which provides buyer protection).

  • Alternatively, use a trusted escrow service, where funds are held until export papers and delivery are confirmed.

  • At most, pay a small deposit before any shipment is made.

UK auction houses and a real-world media example

UK auction houses are acutely aware of the risks surrounding provenance and export licences. In 2023, British media reported the arrest of the director of a London-based numismatic firm in New York, charged in connection with the sale of ancient coins believed to have been exported illegally from the Middle East. The case prompted several UK firms to tighten their acceptance policies, refusing consignments from countries such as Pakistan, Afghanistan, and Iraq unless full provenance and export licences could be verified.

Today, major houses such as Noonans, Spink, and London Coins all follow strict cultural-property compliance. Without clear legal paperwork, they simply won’t list the item — understanding that reputational risk and potential seizure far outweigh short-term profit.

Dubai’s role as a middle-market hub

One of the more complex elements in this trade is the emergence of Dubai as a global middle-market hub for ancient coins and antiquities. Because the United Arab Emirates has historically operated more relaxed import regulations, many items from South Asia and the Middle East first pass through Dubai dealers or middlemen before appearing on Western marketplaces or online auctions.

While not all such activity is illegal, the lack of transparent provenance and export documentation often obscures the original source — meaning a coin that appears to be offered from Dubai may, in fact, have been exported illicitly from Pakistan or Afghanistan. UK and EU authorities are increasingly alert to this practice, and coins traced through such channels can still be subject to seizure under the UNESCO 1970 Convention.

Can you buy them legally with a licence?

In theory, yes. Pakistan’s Department of Archaeology and Museums and the State Bank of Pakistan can issue export or ownership licences for coins that are not considered part of the national heritage collection. In practice, however, such licences are rarely granted — and only for officially recorded artefacts leaving through recognised institutions.

To purchase legally, you would need:

  1. An official export permit from Pakistan’s authorities confirming the coins are not protected cultural property.

  2. A declaration from the seller showing legal ownership and provenance.

  3. Import clearance under UK customs referencing UNESCO 1970 compliance.

Without these documents, even genuine ancient coins may be seized or returned if challenged.

The takeaway for collectors

Indo-Greek and Indo-Parthian coins are breathtaking relics of ancient history — but they also sit at the crossroads of some of the world’s most stringent cultural-property laws. What looks like a routine online purchase could violate both Pakistani national law and United Nations conventions.

The lesson is clear: always verify provenance, demand export paperwork, and only use secure payment methods. Collecting history is a privilege — but one that must be exercised responsibly, legally, and transparently.

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