In the bustling heart of Namak Mandi, Peshawar, Faraz Ahmad, a 30-year-old gemstone exporter, is more than just a businessman; he’s a symbol of resilience and ambition. His workshop, filled with the rhythmic hum of polishing and cutting machines, is a microcosm of the region’s gemstone trade. Here, gemstones are abundant and precious, yet often undervalued due to outdated mining methods and a lack of modern technology. Faraz’s story is not just about personal success; it’s a testament to the untapped potential of Pakistan’s gemstone industry.
The demand for KP’s gemstones, including rare varieties like Ruby, Emerald, Sapphire, Topaz, and Aquamarine, has surged both locally and internationally. These gems, found across KP, Gilgit-Baltistan, Azad Kashmir, and parts of Balochistan, have the potential to become a significant revenue source for the region and the country. However, the industry is held back by significant hurdles, including a lack of modern technology, laboratories, and professional training.
Faraz inherited his business from his father a decade ago and is now part of an industry poised for growth. “A person with technical know-how can easily earn Rs15,000 per carat from Emerald and Sapphire and up to Rs 100,000 profit from Ruby after making about Rs 0.6 million investment,” Faraz says. The gemstone trade supports over 300,000 people, but its full economic potential remains untapped due to outdated mining methods and a lack of infrastructure.
Mamoor Khan, the patron-in-chief of All Pakistan Commercial Exporters Association (APCEA), believes that the sector’s future lies in its development on modern lines. “Pakistan is home to diverse and rare varieties of gemstones and the potential to export millions of carats of rubies, emeralds and peridots remains untapped,” Mamoor Khan said. “This sector has the potential to become a major contributor to country’s economy, if fully tapped.”
Dr. Muhammad Naeem, former Chairman of Economics Department at University of Peshawar, echoed similar sentiments, criticizing past governments for neglecting the gemstones sector. “With proper support of the government, the gemstones sector could increase exports to billions of dollars.” He emphasized the need for significant investment in infrastructure, modern gemological laboratories, and subsidized technical training for miners.
The government seems to be taking notice. The Gemstones and Jewelry Authority is set to be established, and gemstones have been included in the list of priority sectors in the strategic trade policy framework (2020-25). The Gemstones City in Peshawar, equipped with modern facilities for training, certification, polishing, and cutting of gemstones, is also in the works. Additionally, the China-Pakistan Economic Corridor (CPEC) could bring technology transfers, positively impacting the country’s exports.
However, the path forward is not without challenges. The industry needs a comprehensive policy that addresses safe extraction techniques, curbs smuggling, and provides modern technical hardware to miners at subsidized rates. The establishment of modern gems labs in major cities is also imperative to avoid waste and improve quality to compete internationally.
As the gemstone trade continues to flourish in KP, experts agree that unlocking the full potential of the province’s gemstone resources is essential for long-term economic growth. With the right policies, technology transfer, investments, and loans on easy terms, KP’s gemstones industry could become a pillar of Pakistan’s economy, generating substantial revenue and creating thousands of jobs for youth.
This news could reshape the development of the sector by catalyzing a shift towards modern, mechanized mining methods. It could also spur investment in infrastructure and technology, creating a more competitive and profitable industry. Moreover, it could lead to the creation of thousands of jobs, providing economic opportunities for the youth and contributing significantly to the country’s economy. The establishment of the Gemstones and Jewelry Authority and the Gemstones City in Peshawar could further bolster the industry, providing a platform for training, certification, and international linkages. However, the success of these initiatives will depend on the government’s commitment to implementing and enforcing these policies.
