On Friday, a parliamentary committee on commerce disclosed that Pakistan had incurred a $5 billion loss due to gemstone smuggling. This loss was highlighted during a meeting led by Atif Khan, the head of the National Assembly’s subcommittee on commerce. The committee uncovered that Pakistan’s gemstone authority and related centres have never been fully functional, prompting the federal government to establish a new Gemstone and Jewelry Facilitation Wing.
Gul Asghar, a committee member, reported that despite being the world’s 8th largest gemstone producer, Pakistan’s exports are alarmingly low, only amounting to $8 million. There was a time when exports had peaked at $1.4 billion. Asghar explained that many gemstones are illicitly transported to Thailand for cutting and polishing, generating substantial revenue for that country. He also noted that a significant portion, between 30-40%, of these gemstones originate from Afghanistan and are smuggled through Pakistan.
In response, Asghar proposed opening the Afghan border to regulate the trade better. He also pointed out that India employs 5 million people in its gemstone and jewellery sector, which boasts exports worth $45 billion, highlighting the contrast with Pakistan’s industry. He emphasized the importance of establishing institutions under an Act of Parliament to enhance Pakistan’s gemstone industry.
Furthermore, officials mentioned that the Gemstone and Jewelry Authority, created in 2006 along with five centres, has failed to become operational. It was noted that Pakistan’s rubies hold more value than Western diamonds, with a single ruby from Pakistan once fetching $18 million in India. Asghar also mentioned that large ruby deposits exist in Swat, Gilgit, and Kashmir.
