ISLAMABAD: The federal government has approved a comprehensive five-yearplan to regulate and expand Pakistan’s precious stones market, estimated at$450 billion in reserves, aiming to channel billions of dollars worth ofgemstones into formal trade channels and significantly boost foreignexchange earnings. This initiative addresses longstanding issues ofsmuggling, under-reporting, and informal operations that have limited thesector’s contribution to the national economy despite abundant naturalresources.
Pakistan possesses vast deposits of high-quality precious and semi-preciousstones, including emeralds from Swat, rubies from Azad Jammu and Kashmir,peridot, topaz, tourmaline, and sapphires. Official estimates place thesereserves at approximately $450 billion, with specific figures highlightingaround 200 million carats of ruby and 70 million carats of emerald amongother varieties. However, the sector remains largely untapped due toinadequate infrastructure and regulatory frameworks.
Current formal exports of precious stones from Pakistan stand at a modestlevel, with figures around $5.8 million to $8 million annually in recentyears, according to various industry and parliamentary reports. Thiscontrasts sharply with the country’s status as one of the world’s topproducers, ranked eighth globally in gemstone output, yet plagued bysmuggling that reportedly drains up to $5 billion worth of rough stoneseach year to countries like Thailand for processing.
The new five-year plan, building on the in-principle approval of the firstNational Gemstones Policy framework granted by Prime Minister ShehbazSharif, focuses on comprehensive reforms. Key measures include geologicalmapping for accurate reserve assessment, establishment of internationallyaccredited testing laboratories, and a certification regime to meet globalstandards and build buyer confidence in Pakistani gems.
A central dedicated authority will be created, incorporating federal andprovincial representatives, to oversee registration, coordination, andfacilitation across the gemstone value chain. This body aims to improvetraceability, ensure compliance, and promote the sector internationally,while curbing informal practices that have hindered growth.
Under the plan, 610 exporters will receive support to participate ininternational exhibitions and access global markets over the next fiveyears. This initiative is expected to enhance visibility and facilitatedirect trade linkages, reducing dependency on intermediaries and increasingvalue addition within Pakistan through local cutting, polishing, andjewelry manufacturing.
The government emphasizes value addition as a core strategy to transformraw stone exports into high-value finished products. Industry experts notethat with modern facilities and skilled craftsmanship, Pakistan couldcapture a larger share of the global gem and jewelry market, valued in thetrillions, where demand for ethically sourced and certified stonescontinues to rise.
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Challenges such as fragmented regulations between federal and provinciallevels, limited domestic processing capacity, and lack of standardizedcertification have historically driven smuggling and under-invoicing. Thepolicy addresses these by proposing a national registry for gemstonebusinesses to improve data integrity and enable better monitoring ofproduction and trade flows.
Prime Minister Sharif has directed swift implementation, including thecompletion of facilities like the Islamabad Gemstone Center. Two Centers ofExcellence are planned to focus on research, development, and training,aiming to elevate technical standards and foster innovation in gemstonehandling and marketing.
The overarching target is to achieve $1 billion in annual gemstone-relatedexports within the five-year timeframe through these sectoral reforms.Success could generate substantial foreign exchange, create employmentopportunities in mining, processing, and export-oriented units, andintegrate the informal economy into mainstream channels.
This strategic push aligns with broader economic recovery efforts,positioning the gemstone sector as a key driver of export-led growth. Byformalizing trade and investing in infrastructure, Pakistan seeks to unlockthe true economic potential of its mineral wealth and establish “BrandPakistan” in the international gem market.
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