ISLAMABAD: Pakistan has lost an estimated $5 billion worth of gemstones due to rampant smuggling, as disclosed by a parliamentary subcommittee on commerce during a session on Friday. The meeting, chaired by Atif Khan, head of the National Assembly’s subcommittee on commerce, shed light on the dire state of the gemstone sector.
Officials revealed that Pakistan’s Gemstone and Jewelry Authority, established in 2006, and its five centers have remained non-operational. In response, the federal government plans to launch a new Gemstone and Jewelry Facilitation Wing to regulate the sector and curb losses.
Committee member Gul Asghar noted that despite being the world’s 8th largest gemstone producer, Pakistan’s gemstone exports are shockingly low, standing at just $8 million annually. This is a far cry from the industry’s previous peak export value of $1.4 billion. Asghar emphasized that most gemstones are smuggled to Thailand, where they are cut, polished, and sold at much higher prices, generating significant revenue for Thailand’s economy.
Atif Khan inquired about the source of these smuggled gemstones. Asghar explained that 30-40% originate from Afghanistan but are funneled through Pakistan before being smuggled abroad. He suggested opening the Afghan border to better regulate this trade and reduce illegal activity.
The committee also discussed the success of India’s gemstone industry, where 5 million people are employed, and annual exports reach $45 billion. Asghar urged the establishment of a legal framework under Parliament to grow Pakistan’s gemstone industry.
Commerce officials highlighted Pakistan’s wealth in valuable gemstones like rubies, which are found in abundance in regions like Swat, Gilgit, and Kashmir. They pointed out that a single Pakistani ruby was sold in India for $18 million, underlining the immense potential of the sector.
Chairman Atif Khan also drew attention to Pakistan’s untapped industrial minerals, such as antimony, valued at 1.5 million rupees per ton, and urged for a strategic approach to harness these resources to benefit the country’s economy.
