Stakeholders blame bad representation for decline in gemstone industry

Say govt officials not doing their job, wasting money.

ISLAMABAD:

The gemstones industry has been on a constant decline due to a spate of violent terrorist activities in the heartland of the industry. However, stakeholders also blame “pitiable performance” on the part of the Pakistan Gems and Jewellery Development Company (PGJDC), which they say has “destroyed” the sector.

Leading businesspersons from the industry allege that lavish spending by PGJDC officials on salaries and maintenance of offices in different parts of the country, coupled with ill-planned decision-making, has caused colossal losses to the country.

PGJDC is a subsidiary of the Pakistan Industrial Development Corporation, which comes under the Ministry of Production. It is assigned the charter to enhance the value chain and productivity of the gems and jewellery industry. “It has been functioning since 2006 without any significant achievements,” complains Shafee Muhammad, a leading exporter of semi-precious stones based in Peshawar. “It is a useless company, which has failed miserably in achieving any notable success so far,” he went on, adding that: “Millions of rupees provided by the federal government have been wasted by the people at its helm.”



“Despite its rich treasury of valuable and semi-precious gemstones and its history of high standard jewellery manufacturing, the country has not been able to develop an internationally competitive industry,” a businessman complained.

Most businesspersons blame Senator Samina Siddiqui, the PGJDC chairwoman, and CEO Bakhtiar Khan, of the company’s lack of a visionary approach in policy-making. “Samina is basically a politician and knows nothing about gemstones and mining,” one of them alleged. She was also criticised for her dictatorial attitude, rejecting recommendations made by the company’s board.

Bakhtiar Khan, while rejecting the allegations levelled by accusers, says that the export of gemstones and jewellery is actually increasing rapidly. He claims that about one billion dollars worth of exports of gemstones and jewellery was recorded during the year. However, he admitted that a lower quantity of gemstones was exported as compared to jewellery.

However, Atif Rashid Khawaja, a former chairman of the All Pakistan Commercial Exporters Association, says that terrorism alone is the key factor responsible for the near breakdown of the mining industry in Khyber-Pakhtunkhwa and Balochistan.

Khawaja, a well-known figure in Peshawar’s business community, is of the view that the Ministry of Production must take all stakeholders into confidence for its policy-making activities. Appreciating the US Agency for International Development’s contribution towards the development of PGJDC, he says the sector can play a significant role provided the company plays its due role. However, he adds that since mining has been suspended in almost all regions in Khyber-Pakhtunkhwa and Balochistan, the company cannot do much in the present scenario.

Assadur Rehman, a prominent jeweller based in Lahore and a former director in the PGJDC board, admits that the company could not fulfil expectations attached to it. However, he laid the blame on the incumbent government, accusing it of interfering in the functioning of the company and replacing board members with political appointees. Speaking from experience, he said that the Ministry of Commerce should have no role in the gemstone industry, as he believes that the Ministry of Production can handle business affairs on its own.

Published in The Express Tribune, February 9^th, 2013.

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