PAKISTAN is home to a wealth of gemstones, from aquamarine and emeralds to rubies, tourmaline, and topaz. Despite these rich resources, the gemstone sector remains underdeveloped. Challenges like a lack of value addition, illegal trade, and limited market access hinder its growth. However, with the right strategies, Pakistan has the potential to become a global leader in the gemstone industry.
Emeralds from Swat and Kohistan are renowned for their vibrant green colour, while rubies and sapphires from Gilgit-Baltistan are in high demand due to their exceptional clarity and colour. However, many of these gemstones are exported raw or minimally processed, which limits their market value. Pakistan also produces tourmaline and topaz in a variety of colours, including green, pink, yellow, and blue. These stones are in demand globally but are undervalued due to limited cutting and polishing facilities.
The biggest challenge for Pakistan’s gemstone sector is the lack of local processing. Most gemstones are sold raw, leading to a significant loss of potential value. By investing in cutting, polishing, and certification infrastructure, Pakistan could capture more market value and create local jobs. Smuggling remains a major issue, with gemstones often being smuggled out of the country, depriving the government of tax revenue and economic growth. A key solution is to reactivate the Pakistan Gems & Jewellery Company (PGJC). Originally established to promote the sector, PGJC struggled due to a lack of funding and management. With proper capital and leadership, PGJC can develop the gemstone value chain from mining to cutting and certifying. Partnerships with leading gemstone-producing countries like Brazil would facilitate technology transfer and improve cutting and polishing techniques. Additionally, establishing certification laboratories will help ensure gemstones are priced fairly and reduce illegal exports, ensuring that gemstones are traded transparently and at their true value.
Providing affordable credit to local miners will enable them to invest in better equipment, improve production quality, and expand their operations. This will help miners take advantage of global market opportunities, leading to better returns for their gemstones.
Investing in gemstone exploration technology and modern extraction methods could unlock even more of Pakistan’s untapped reserves. With investments in geological surveys and advanced mining practices, Pakistan could uncover new deposits of rare gemstones, further boosting its role in the global gemstone industry.
With the right investments in sustainable mining practices, Pakistan’s gemstone sector could also play a role in environmental preservation. By adopting eco-friendly extraction techniques and ensuring responsible sourcing, Pakistan can position its gemstones as ethically sourced, attracting more global buyers who prioritize sustainability in their purchasing decisions.
Pakistan’s gemstone sector holds immense potential, but to unlock it, the country must address challenges like smuggling, lack of value addition, and poor infrastructure. Focusing on processing, cutting, certification, and global partnerships will help Pakistan realize the full value of its gemstone wealth. A crucial step would be to revitalize PGJC and support technology transfer to improve quality and global competitiveness. By fostering these changes, Pakistan can capture its share of the global gemstone market and contribute to national economic growth.
—The writer is a former technocrat and a regular contributor on national, economic, and industrial reforms.
