Despite being blessed as the fifth largest gemstone reserve, Pakistan has not been able to develop an internationally competitive gems industry so far. Being home to world-recognized expensive jewels and its abundant reserves of precious and semi-precious gemstones, Pakistan should have significantly dominated the international market for precious rocks. However, despite the country’s unquestionable potential, we could not earn a place amongst recognizable exporters of precious stones. Last week Prime Minister Imran Khan chaired a high profile meeting to explore the potential of industry where stake holders of concerned industry briefed premier on myriad of problems, gaps, impediments and issues related to governance which was seriously hampering an open opportunity to harvest the available treasures which could support country’s economy. Amongst others, I myself, representing a major stake holder also had opportunity to present the situation to Prime Minister. The forum suggested government to form a national Task Force to capitalize on the stone resource. It is understood that developing this potential will have a significant impact on Pakistan’s economy in terms of increase in employment and entrepreneurship, income generation, export revenues, and above all poverty alleviation. However, Pakistan’s gems sector is well short of becoming an industry. The sector suffers from limited investment in research, product development and training. Low technology and traditional mining techniques, underdeveloped lapidary facilities and lack of skill human resource are not allowing this industry to prosper. Mining technology and processes are rudimentary and unscientific resulting in significant wastage at the extraction stage. High raw material costs, poor international marketing and branding, underdeveloped designing capabilities and limited linkages with domestic and international support infrastructure have resulted in our decreased exports. Limited identification and certification, and lack of hallmarking have been a main reason which has obstructed Pakistan’s desired position amongst important exporters in the world. Due to lack of adequate processing facilities and skills, eighty percent of Pakistan’s exports consist of unworked stones, representing a significant loss in value addition. In Pakistan, the domestic market potential is currently charted at a substantial USD 1.2 billion; however the existing government data reflects exports up to a meager tune of 2.5 million only. As per experts the actual potential of Pakistan in terms of exports ranges between USD 5 to 10 billion. On the other hand, growing international market for gems indicate that there is a lot of capacity for an increase in exports, several times of calculated figures, that could support our fragile economy. Just to look at few statistics, the sector exports for Pakistan from last couple of years, in 2014, gemstone and jewelry sector exports were around $400 million. But since then the exports declined gradually and reached to the worst level of $23.75 million in 2017. On the other hand in 2014-15 the world demand for gems and jewelry was around $600 billion which was gradually on the increase. The subject of mining natural resources has been devolved to federating units, the Task Force must begin with provincial level consultative sessions by the designated working groups to build a consensus among stake holders on a uniform policy Lack of an encouraging policy framework has also imposed significant constraint on the gems sector. Historically, the sector has received very little attention from the government. That is why the environment for trade in this precious natural resource is yet to be simplified and incentivized. Presently, it is a nightmare process and policy regime for traders, exporters and importers who are required to fill out a number of detailed documents and have to run from pillar to post for survival of their trade. Rapidly changing international demand patterns require exporters to be prompt and flexible while lengthy documentation requirements restrict their ability to respond proficiently. Banks, customs, revenue and each of the government department at each tier, has its own obstructive policy which discourages the investors. Pakistan needs a lot to overhaul the existing policy regime related to gem sector. We need to study the models adopted by India and Sri Lanka which have incentivized the industry, simplified the procedures, documentation and approvals. The Government of India has permitted 100% FDI under the automatic route in this sector. Government levies 3 per cent goods and services tax (GST) on precious metals and stones including processed diamonds, while 0.25 per cent GST is levied on rough diamonds. Besides this, an International Jewelry Show is held every year. In 2018, the deals of worth $1billion dollar made during the show only. Reforms are required on similar lines in Pakistan which may encourage faster access to the international market, thereby allowing the industry to become more responsive to changing market trends. Efficient and speedy clearance of imported goods will increase the productivity of the local industry. Automated procedures will also result in greater efficiency in information management and documentation. The Task Force formed by Prime Minister will be headed by Special Advisor to Prime Minister for Mineral Resources Shahzad Syed Qasim. It would be an important and much needed task to prepare a strategy which should help the government as well all stake holders to reposition the gems industry from a cost-based sector to a high value-added, competitive brand in the global market. The sector can be uplifted by strengthening national and provincial level coordination between in public and private sector, up gradation of technology & techniques along the entire value-chain, incentivizing the sector for large scale investments, fix obstructive policy issues related to import, export duties, taxes, customs etc. while encourage R&D (research and development) through establishment of Centers of Excellence at provincial levels. Government must also plan to establish small scale cottage industries for economic empowerment at grass root level. Meanwhile fresh geological surveys should be encouraged to identify new deposits while quantifying the existing ones. Since after the 18th Amendment in Constitution of Pakistan, the subject of mining natural resources has been devolved to federating units, thus the Task Force must begin with provincial level consultative sessions by the designated working groups to build a consensus among stake holders on a uniform policy. Government should welcome and facilitate private investors into the sector. This entire exercise if undertaken seriously and dedicatedly would result into contribution by this undermined sector towards economic stability of our country in years to come. The writer is a versatile analyst and speaker on contemporary issues