Gemstone statutory authority being set up

New policy proposes minimum export price to curb under-invoicing

ISLAMABAD:

The government has finalised a plan to set up a new statutory authority for the gemstone sector and a warranty office under the proposed National Gemstones Policy.

The plan was submitted during a meeting chaired by Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar to review and finalise the gemstone policy, aimed at unlocking the vast untapped potential of Pakistan's gemstone sector.

Minimum export price benchmarking for gemstone shipments has been proposed to curb under-invoicing, a major concern flagged by regulators. An easy, online business registration framework is also part of the reform package.

The proposals include a return and refund mechanism for exports. Officials say the absence of re-routing procedures has hindered export operations. Payment aggregation and a dedicated e-commerce portal are also under consideration to reduce foreign exchange leakages and boost online sales.

The plan further calls for a review of State Bank of Pakistan (SBP) provisions and banking procedures as restrictive foreign exchange regulations have constrained the sector's growth.

During the meeting, specialised working groups on import-export, banking and finance and return & refund policies presented their recommendations for inclusion in the policy framework. Haroon Akhtar stated that, following extensive consultations with experts, the policy and quality standards had been aligned with international benchmarks.

The policy focuses on accelerating growth, promoting value addition and transforming the gemstone industry into a competitive export-oriented sector. He emphasised that there was a strong consensus that Pakistan could emerge as a leader in the global gems and jewellery market.

Highlighting the challenges, the SAPM noted that the gemstone sector was suffering from high wastage, limited value addition and declining exports. Due to unscientific extraction and processing methods, up to 50% wastage occurs at various stages. Despite the enormous potential, gemstone exports have remained restricted to $5-7 million in recent years.

Haroon Akhtar underscored that, following stakeholder consultations, formalisation and documentation of the entire gemstone value chain had been made a top policy priority. To stimulate growth, the government will provide targeted financing, streamlined facilitation and smart incentives for the sector.

Under the National Gemstones Policy, a new statutory authority will be established to act as custodian of the policy, facilitate businesses and ensure effective inter-agency coordination. The policy also proposes the establishment of the National Warranty Office, along with commercial desks at airports, to support gemstone exporters.

The warranty office will offer an integrated, transparent and efficient system for gemstone exports, including packaging and certification services. Additionally, proposals include the provision of efficient courier services, international digital banking solutions such as Nayapay and easy online registration mechanisms to further facilitate exporters.

Terming the gemstone industry a billion-dollar sector, Haroon Akhtar stated that proper documentation and regulatory reforms would significantly boost Pakistan's economy.