Pakistan has suffered a massive $5 billion loss due to rampant gemstone smuggling, a parliamentary committee on commerce revealed on September 13.
The issue came to light during a meeting led by Atif Khan, chair of the National Assembly’s subcommittee on commerce. Officials highlighted that Pakistan’s gemstone authority and related centers have never been fully functional, prompting the federal government to propose establishing a new Gemstone and Jewelry Facilitation Wing.
Low exports despite high potential
Committee member Gul Asghar pointed out that despite being the 8th largest gemstone producer globally, Pakistan’s exports remain shockingly low at just $8 million. In contrast, the country’s export value once reached $1.4 billion.
Asghar explained that many gemstones are smuggled to Thailand, where they are cut and polished, significantly boosting Thailand’s revenue. He suggested that opening the Afghan border could help regulate gemstone trade since 30% to 40% of the gemstones come from Afghanistan before being smuggled onward.
Need for institutional reforms
Asghar also noted that India’s gemstone and jewelry industry employs 5 million people and earns $45 billion annually from exports. He urged institutional reforms, recommending that the sector be developed under an Act of Parliament to enhance Pakistan’s competitiveness.
Commerce officials added that Pakistan’s Gemstone and Jewelry Authority, established in 2006 along with five centers, remains non-operational. Highlighting the country’s untapped potential, they shared that Pakistan’s rubies are more valuable than Western diamonds, with one ruby fetching $18 million in India. Large reserves of rubies are located in Swat, Gilgit, and Kashmir.
Atif Khan also pointed out that Pakistan holds substantial deposits of industrial minerals and antimony, with the latter valued at 1.5 million rupees per ton. The committee emphasized the importance of leveraging Pakistan’s untapped resources, particularly in gemstones and industrial minerals, to strengthen the national economy.