The National Assembly’s Sub-Committee on Commerce Meeting uncovered USD 5 billion worth of precious gemstones smuggled from Pakistan.
In a recent session chaired by Atif Khan, the National Assembly’s Sub-Committee on Commerce uncovered that smugglers have exported gemstones worth approximately $5 billion from Pakistan to various international markets.
Committee member Gul Asghar reported that despite Pakistan’s ranking as the eighth largest gemstone producer, referred to locally as James Stones, the country has suffered significant losses due to smuggling. The exports of these stones have dropped sharply to just $8 million from a previous high of $1.4 billion. The central government plans to establish a James and Jewelry Facilitation Wing to curb these losses and strengthen regulatory mechanisms.
Asghar provided details on the smuggling route, noting that many gemstones travel to Thailand for further processing, significantly enhancing foreign exchange earnings there. He mentioned that about 30-40% of these stones come from Afghanistan, with a robust and uninterrupted smuggling chain.
Read: The $5 Billion Loss: Pakistan’s Struggle with Gemstone Smuggling
Emphasizing the broader industry context, Asghar proposed opening the Afghan border for regulated gemstone trade. He also highlighted the flourishing gemstone and jewellery sector in India, which employs nearly 500,000 people and generates exports worth $45 billion. He stressed the urgent need for Pakistan to create dedicated institutions under a Parliamentary Act to enhance gemstone exports.
The meeting also addressed the operational challenges faced by the James Stones and Jewelry Authority, established in 2006 with five centres that remain inactive. Asghar pointed out the high value of Pakistan’s rubies, surpassing Western diamonds’ worth, citing the sale of a single ruby in India for $18 million.
He noted the substantial deposits of valuable rubies in Kashmir, Gilgit, and Swat. With the global demand for industrial minerals rising, especially from China, Committee Chairman Atif Khan emphasized the vast potential of Pakistan’s industrial minerals and antimony, valued at 1.5 million rupees per ton.
