Pakistan has lost $5 billion worth of gemstones due to smuggling, a parliamentary committee on commerce disclosed on Friday.
The revelation came during a meeting chaired by Atif Khan, head of the National Assembly’s subcommittee on commerce.
Officials revealed that Pakistan’s gemstone authority and centers have never been fully operational, prompting the federal government to establish a new Gemstone and Jewelry Facilitation Wing.
Committee member Gul Asghar informed the committee that Pakistan, the world’s 8th largest gemstone producer, has a dismal export record of only $8 million.
At one point, the export value had reached $1.4 billion.
Asghar added that gemstones are smuggled to Thailand, where they are cut and polished, generating billions in revenue for the country.
Atif Khan inquired about the origin of gemstones, noting that 30-40% come from Afghanistan. Asghar responded that these gemstones often pass through Pakistan and are smuggled onward.
He suggested opening the Afghan border to better regulate the trade.
Asghar further pointed out that 5 million people in India are employed in the gemstone and jewelry sector, which boasts exports worth $45 billion.
He emphasized the need for establishing institutions under an Act of Parliament to boost Pakistan’s gemstone industry.
Commerce officials revealed that the Gemstone and Jewelry Authority was established in 2006, along with five centers, none of which have become operational.
Pakistan’s rubies, they noted, are more valuable than Western diamonds.
Asghar highlighted that a single Pakistani ruby was once sold in India for $18 million. Large quantities of rubies are found in Swat, Gilgit, and Kashmir.
China, he added, is seeking industrial minerals globally. Committee Chairman Atif Khan noted that industrial minerals and antimony are abundant in Pakistan, with antimony valued at 1.5 million rupees per ton.
The committee stressed the potential for tapping into Pakistan’s vast resources, particularly in gemstones and industrial minerals, to bolster the country’s economy.