Pakistan has lost an estimated $5 billion in gemstones due to rampant gemstones smuggling, as revealed by a parliamentary committee on commerce during a meeting chaired by Atif Khan, head of the National Assembly’s subcommittee on commerce.
This startling revelation came during the meeting, where officials disclosed that the country’s gemstone authority and centers have never been fully operational. In response, the federal government has decided to establish a new Gemstone and Jewelry Facilitation Wing to combat the issue.
Committee member Gul Asghar informed attendees that, despite being the world’s 8th largest gemstone producer, Pakistan has a dismal export record of only $8 million. This figure starkly contrasts with a peak export value of $1.4 billion in the past.
Gul Asghar pointed out that gemstones are often smuggled to Thailand, where they are cut and polished, generating billions in revenue for that country. Notably, 30-40% of these gemstones originate from Afghanistan, passing through Pakistan before being smuggled onward. He suggested that opening the Afghan border could better regulate the trade.
Moreover, Gul Asghar highlighted that India employs around 5 million people in the gemstone and jewelry sector, which boasts an impressive export value of $45 billion. He emphasized the urgent need to establish institutions under an Act of Parliament to stimulate Pakistan’s gemstone industry.
Commerce officials further revealed that the Gemstone and Jewelry Authority was established in 2006, along with five centers, none of which have yet become operational. Interestingly, they noted that Pakistan’s rubies are considered more valuable than Western diamonds, with one Pakistani ruby once sold in India for $18 million. Large quantities of rubies can be found in Swat, Gilgit, and Kashmir.
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Additionally, committee chairman Atif Khan noted that Pakistan has abundant industrial minerals, including antimony, which is valued at 1.5 million rupees per ton. The committee stressed the significant potential to tap into Pakistan’s vast resources, particularly in gemstones and industrial minerals, to bolster the country’s economy.
