Gemstones exports from Pakistan

 

Pakistan has exported a variety of precious and semi precious Gemstones US$. 3.93 million worth during the last two years, official sources said.

Answering a question, the sources informed that different varieties of minerals like Ruby, Sapphire, Emerald, Peridot, Aquamarine, Morganite, Ghoshnite, Topaz in different colors of colorless, pink, golden and champagne, Ruby, Emerald, apatite,  rare-earth minerals bastnasite , Xenotime, Sphene, Tourmaline, Different verity of Quartz and different type of metals for example Gold, Silver, Copper, hematite, antimony lead Zink, Iron, and many type of ores are make the country prominent in the mineral world.

The northern and northwestern parts of the country are shrouded by the three world-famous mountain ranges called Hindukush, Himalaya, and Karakorum, from where nearly all the minerals, which Pakistan is currently offering to the world market, have been found so far.

The sources said out of 25 precious and semi precious stones and mineral specimens, seven were intermittently exploited and marketed all over the world.

United States, China, United Arab Emirates, Germany, Hong Kong, United Kingdom, Canada, France, Thailand and Saudi Arabia are the top ten countries where precious stones have been exported during the three-year period.

They said the government was making efforts to promote the gemstone industry so that the country's vast potential of glittering gemstones could be exploited in a professional manner.

Pakistan, based on its potential in mineral wealth, can become a great hub of the gemstone industry, on a scale comparable to that of Brazil, provided it takes a few essential steps to enhance the exploration of resources and growth of gemstone business.

 

Gems and Jewellery sector has global importance in the world. This sector is divided into two categories Gold, non-monetary (excluding gold ores and concentrates) and Jewellery, goldsmiths' and silversmiths' wares, and other articles of precious or semiprecious materials, n.e.s. The top five exporters of Gold, non-monetary (excluding gold ores and concentrates), the largest exporter of Gold, non-monetary (excluding gold ores and concentrates) was United States of America which export about $ 5,543 million, followed by Australia ( $4,442 million), Canada ($3,701 million), Peru ($ 3,072 million) and China ($ 2,803 million) in 2005. While the world's largest exporter of Jewellery, goldsmiths' and silversmiths' wares, and other articles of precious or semiprecious materials, n.e.s was Italy which export of worth $ 5,039 million, followed by United States of America ($ 4,359 million), Hong Kong Special Administrative Region of China ($ 4,275 million), India ($ 3,821 million and China ($ 2,826 million) in 2005.

OVERVIEW OF PAKISTAN'S GEMS AND JEWELLERY SECTOR:

Pakistan is a country with a rich tradition of craftsmanship in jewellry manufacturing. Skilled/semi-skilled labour force is available at relatively lower rates, which offers a comparative advantage to the country. Their skill enhancement through training would lead to greater competitiveness. Pakistan has been gifted with abundant resources of several precious and semi-precious gemstones, at present mostly found in Northern Areas and NWFP, but with a huge future potential in Balochistan. Most important of the currently found stones are emeralds of Mingora (Swat), pink and golden topaz of Katlang (Mardan) and aquamarine of Chitral and Neelam Valley. At present, there is no final survey available to identify the geological resources of gemstones in the country. Furthermore, due to lack of realization of its importance as an industry, those who are engaged in the mining, cutting/polishing and trading of gemstones in Pakistan have not been able to exploit the full potential of this sector.

The first gemstone mine in Pakistan was discovered in 1951, in the Haramosh Range in Gilgit. But it took no less than 27 years for the establishment of Gemstones Corporation of Pakistan (GEMCP), under the administrative control of Ministry of Petroleum & Natural Resources, in 1978. GEMCP was responsible for exploring, mining, auctioning and exports of gemstones. Within 15 years of its establishment, GEMCP was disbanded in 1993-94 and private sector was encouraged to invest in the sector. The impact of privatization proved to be positive, as exports of gemstones have risen since then, albeit slightly. In 2003, the total value of gemstones export was worth US$4 million. Factors including lack of appropriate skills, vested interest, regulatory bottlenecks, technological limitation and so forth, have been responsible for hindering the efforts of new investors to make any significant progress in this regard.

Likewise, the Free Trade regime in addition of removal of international barriers is posing a great threat to the highly fragmented market of Pakistan gem a jewelry sector, being denied of gold loans by banks, is operating with the lack of training facilities besides the lack of standardization and quality assurance.

The industry experts said that the country had not been given its jewelry sector any kind of financial help from any of the banks or financial institutions. The experts termed the delay in establishment for jewelry exports an expensive mistake.

EXPORT OF GEMS AND JEWELLERY IN MILLION US $:

Pakistan export two categories of Gems sector which are Precious & Semi Precious Gemstones major export share of Gems sector was gone to rough stone as minerals specimens. Export from Pakistan of Precious & Semi Precious Gemstones was US$ 3.93 million recorded in the fiscal years 2015 to 2016  Although, the volume of exports of Gemstone from Pakistan is of no great significance in the total global trade of US$84.4 billion but the growth potential of exports in the sector is huge.

REASONS DUE TO WHICH THIS INDUSTRY IS NOT FLOURISHED:

* One of the main hindrances in the development of this is the lack of it being recognized as an industry due to which none of the banks and financial institutions support.

*There was a dearth of skilled, semi-skilled and relatively cheap labour available in Pakistan. The Gems Cutting & Polishing  trade in Pakistan involves a large turnover of Gemstone  worth in millions of dollars, but the drawback is that the Gems industry still relies on traditional designs which can only satisfy the local demand of consumers in Pakistan.

*A major handicap to the development of Gems cutting & Polished  products for exports from Pakistan is the lack of facilities for training of manpower in capacity building, quality assurance, standardization and marketing management. The Pakistani manufacturing industry if continues to stagnate will eventually decline as it will fail to compete with Asian countries (Thailand, Hong Kong and India) and European countries in its domestic market when trade barriers are removed.

 

 

SUGGESTIONS AND RECOMMENDATIONS OF GEMOLOGICAL ASSOCIATION  OF PAKISTAN (GAP):

1,  Gemstone industry should be given a boost by introducing Pakistani stones in the      international markets through meaningful participation in international gem shows. The exhibitors should be encouraged to bring out the best gems and put them on display keeping in view the expectations of the consumers. The stones in the exhibitors should show the richness of the area.

2,  The Gemstone industry should be announced at zero rated industry, as it is export- based   industry.

3,  Incentives for Exploration, Mining, Cutting and Polishing of Gemstones for Export on Scientific lines are required to be rationalized at par with the Neighboring Gems producing countries.

4,  The Gems industry should be given loans to the nominal mark up.

5,  Gemstone industry should be given a boost by introducing Pakistani stones in the international markets through meaningful participation in international gem shows. The exhibitors should be encouraged to bring out the best gems and put them on display keeping in view the expectations of the consumers. The stones in the exhibitors should show the richness of the area.

6,  Holding special displays in major markets like USA, UK, Switzerland, Thailand, Sri Lanka and India can be an important source not only of introducing but also establishing the credibility of Pakistani stones in international markets.

7, To be competitive in the global market, soft loans and ready financing were essential, making a tremendous difference to the industry if Gems Cutter fabrication was recognized as a priority sector by banks.

ROLE OF GOVERNMENT:

*Government is focusing on the development of gems and jewelry sector and plans to enhance its exports from $21 million to $500 million through skill development, market access and tapping its rich potentials in the country.

*Pakistan offers a lot of potential of foreign investment in Gems and Precious Stones Sector which can be exploited by Thai investors. Pakistan government was giving equal treatment to foreign and local companies. Government was not only upgrading the mine sector but also focusing on the training for cutting, polishing of the precious stones in order to develop this sector.

*Government was committed to untapped the natural resources especially gems of the country and in this regard it had taken numerous steps and established  Gems & Gemological institute of Peshawar Pakistan (GGIP) Under supervision of TDAP Ministry of Commerce with the aim to develop this sector. Pakistan has a market of 160 million people with rich natural resources including gems and Jewelry and urged the investors to take benefit from it. This sector requires proper training, management and marketing for the development of Gems and Jewelry sector.

*Initiatives taken by the government to upgrade this sector and Government has also established training institutes for the development of the Gems sector and invited master trainers from Thailand to share its knowledge and experience with Pakistan for the mutual benefit of the two countries. Pakistan has rich natural resources especially gems and assured that TGJMA would extend its all possible support and technical assistance to Pakistan for the development of this sector. Thai experts could train Pakistanis for proper cutting, polishing and marketing of the Gems and Jewelry sector of Pakistan and its exports to international markets.

PACKAGE FOR GEMS AND JEWELLERY SECTOR:

By considering that Gems sector have considerable export potential. Therefore it is decided to announce the following package to facilitate this sector.

ii. Presently a Valuation Committee is functioning for the clearance of Gems and jewelry before export. The procedures involved were retarding the growth of exports of this sector. It has therefore been decided to abolish the Valuation Committee.

iii. A scheme, in consultation with State bank, Pakistan Bankers Associations, commercial banks and jewelry exporters is being developed whereby exporters will import gold by utilizing financing from private banks under a collateral arrangement acceptable to commercial banks and jewelry exporters. Non availability of running finance has been a major problem in the growth of this industry.

iv. It has been decided to declare this sector as an industry so that they have easy access to credit and have advantage in utility rates and taxes.