Restoring some lustre

The gemstone and jewelry sector is arguably one of the country’s most untapped sources of revenue. On the strength of its reserves alone, Pakistan should be up there along with the powerhouses of the alluring, exclusive world of gemstone producers. Yet the figures do not support those claims. In fact, the sector has been under a prolonged period of haze marked by low exports and uncertainty fuelled by security conditions. It is perhaps hard to believe that until five years ago Pakistan was earning virtually a billion dollars from the sector. But since then revenue has been steadily falling – plummeting to $5.8 million in the fiscal year 2016-17.

The All Pakistani Gems Merchants and Jewellers Association is pinning all its hopes on the multibillion dollar China-Pakistan Economic Corridor (CPEC) to revive the fortunes of the gemstones sector. A panel has been formed to study and devise a thorough plan for boosting exports and channeling assistance from China. Projections made by industry experts indicate that the country could increase exports within three years to the magical figure of $5 billion. With Chinese technology and greater market access via CPEC routes, Pakistan could soon see the turnaround it is aspiring for. Domestically, there are sufficient outlets numbering close to 22,000 and 18,000 workshops serving the gemstone trade in the country and nearby Afghanistan. Certain measures will be of enormous value to the country such as setting up gems and jewellery industrial zones, opening up training centres as well as display centres especially along the CPEC route. Closer collaboration is needed between the government and the private sector.

Sadly, our abundant reserves of precious and semi-precious gemstones have not yet been able to penetrate the international market – at least not in the manner our traders had hoped for. Some key factors holding us back include rudimentary processes and technology used in the mining and extraction of gemstones. The bulk of our exports still consist of un-worked stones. Outdated cutting methods and lack of international certification labs have already done severe damage to our industry.  Our craftsmen need state-of-the-art training in cutting, polishing and treating  gemstones.

Published in The Express Tribune, October 23^rd, 2017.

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