ISLAMABAD: Pakistan has lost $5 billion worth of gemstones to smuggling, a parliamentary committee on commerce revealed during a meeting on Friday.
The session, chaired by Atif Khan, head of the National Assembly’s subcommittee on commerce, brought attention to significant issues affecting the country’s gemstone sector.
Officials reported that Pakistan’s gemstone authority and associated centers have never been fully operational, a gap that has prompted the federal government to establish a new Gemstone and Jewelry Facilitation Wing.
The committee expressed concern over Pakistan’s poor gemstone export performance, despite being the world’s 8th largest gemstone producer, with exports only reaching $8 million.
Committee member Gul Asghar remarked that the country once saw exports valued as high as $1.4 billion. He pointed out that many of Pakistan’s gemstones are smuggled to Thailand, where they are cut, polished, and sold, generating substantial revenue for that country.
During the meeting, Atif Khan inquired about the origin of the gemstones. Asghar responded that around 30-40% of these stones originate from Afghanistan, but they pass through Pakistan before being smuggled out. He suggested that the Afghan border be opened to regulate the trade better.
Asghar further highlighted the comparative scale of India’s gemstone and jewelry sector, which employs 5 million people and has exports valued at $45 billion. He emphasized the need for Pakistan to establish institutions under an Act of Parliament to support and grow its gemstone industry.
Commerce officials disclosed that the Gemstone and Jewelry Authority, formed in 2006 along with five centers, has yet to become operational.
They also mentioned that Pakistan’s rubies, found in Swat, Gilgit, and Kashmir, are considered more valuable than Western diamonds. Asghar recounted a case where a single Pakistani ruby was sold in India for $18 million.
Additionally, China’s growing interest in industrial minerals worldwide was noted, with Atif Khan highlighting that antimony, abundant in Pakistan, holds a value of 1.5 million rupees per ton.
The committee stressed the untapped potential of Pakistan’s gemstone and industrial minerals sector and the significant opportunity it represents for economic growth.
