Unexploited reserves: In absence of incentives, gemstone industry losing its shine

If properly utilised, gemstones can earn more foreign exchange than any other products.


Hidayat Khan June 27, 2013
(Left) rare purple-lavender hued topaz found in Katlang, Mardan. (Top right) aquamarine and emerald found in Swat valley. (Bottom right) Quartz, xenotime, and bastnaesite found in Peshawar district. PHOTOS: CREATIVE COMMONS

PESHAWAR:


Reservoirs of precious and semi-precious stones in Khyber-Pakhtunkhwa (K-P) can bring in sufficient foreign exchange for the province, said All Pakistan Commercial Exporters Association (APCEA) Chairman Mushtaq Ahmad.


Traders believe the importance of gemstones in a province like K-P with a feeble economy cannot be over emphasised. Swat, Hazara, Kohistan, Mardan are among the areas rich in gemstone reserves.

Even though residents of these war-affected areas have failed to fully utilise the thriving business, exporters and entrepreneurs never stopped earning.

“We have 3,500 registered exporters of gemstones from K-P and the Federally Administered Tribal Areas (Fata) and we have never seen any one of them incurring a loss,” said Ahmad. He added the workers were all well trained in cutting and carving, but modern training is necessary to meet international standards.



While on one hand the province is affected by war, on the other hand the State Bank has imposed a ban on taking advance payments from international importers which has further increased the financial problems of the industry. There is also a dire need of exploiting new mines as the existing ones are near exhaustion.

“The products which are packed in Peshawar are re-opened and crushed into pieces by customs authorities in Punjab on suspicion of smuggling,” the chairman told The Express Tribune adding entrepreneurs would soon lose trust in the business.

“As foreigners and investors do not visit, we use the same old procedures in excavating,” said a dealer Abdul Salam. The stones are being extracted through blasting mines which not only increases waste, but is also highly dangerous.

Published in The Express Tribune, June 28th, 2013.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ