National Gemstones Policy: Ministry decides to establish new statutory authority

ISLAMABAD: The Ministry of Industries and Production on Tuesday decided to establish a new Statutory Authority to act as the custodian of the policy, facilitate businesses, and ensure effective inter-agency coordination ahead of finalising a new National Gemstones Policy.

The decision was taken during a meeting chaired by the Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, to discuss and review the pros and cons of the national gemstones sector.

Haroon Akhtar, while receiving the briefing on the gemstone sector, stated that the new National Gemstones Policy is aimed at unlocking the vast untapped potential of Pakistan’s gemstone sector. The meeting was informed that the country’s real gemstones export potential is over USD2 billion per annum. However, currently, there are no confirmed data available on the total exports of gemstones, and they have remained undocumented fora long time.

The meeting further observed that 30–40 percent of precious stones are lost because of non-scientific blasting and drilling methods. It was also emphasized that a significant portion of gemstones is exported in raw form without value addition, reducing Pakistan’s export potential. The participants pointed out that the sector faces some serious challenges due to the lack of international cooperation and investment. Haroon Akhtar Khan stated that the use of modern mining technologies can substantially enhance both gemstone production and exports.

During the meeting, specialized working groups on Import–Export, Banking and Finance, and Return and Refund Policies presented their recommendations for inclusion in the policy framework. Haroon Akhtar stated that, following extensive consultations with experts, the policy and quality standards have been aligned with international benchmarks.

In line with the vision of Prime Minister Muhammad Shehbaz Sharif, the policy focuses on accelerating growth, promoting value addition, and transforming the gemstones industry into a competitive export-oriented sector. He emphasized that there is a strong consensus that Pakistan can emerge as a leader in the global gems and jewellery market.

Highlighting existing challenges, the SAPM noted that the gemstones sector currently suffers from high wastage, limited value addition, and declining exports. Due to unscientific extraction and processing methods, up to 50 percent wastage occurs at various stages. Despite enormous potential, gemstone exports have remained limited to USD5–7 million in recent years.

Haroon Akhtar underscored that, following stakeholder consultations, formalization and documentation of the entire gemstones value chain has been made a top priority of the policy. To stimulate growth, the government will provide targeted financing, streamlined facilitation, and smart incentives for the sector.

The policy also proposed the establishment of a National Warranty Office, along with commercial desks at airports to support gemstone exporters. The National Warranty Office will offer an integrated, transparent, and efficient system for gemstone exports, including packaging and certification services.

Additionally, proposals include the provision of efficient courier services, international digital banking solutions such as Nayapay, and easy online registration mechanisms to further facilitate exporters. Terming the gemstones industry a billion-dollar sector, Haroon Akhtar stated that proper documentation and regulatory reforms would significantly boost Pakistan’s economy.

He concluded by reaffirming that all policy measures are geared toward enhancing exports, formalizing the sector, and providing maximum facilitation to exporters.

Copyright Business Recorder, 2025