ISLAMABAD, April 16: The federal government has declared lapidary as a cottage industry with a target to increase gemstone and precious stone annual export from $12 million to $1 billion by the year 2007.
A comprehensive strategy on mining, cutting, polishing and marketing of gemstones has also been approved and sent to the NWFP, Azad Kashmir and Northern Areas to promote the gemstone industry.
The federal government is also providing Rs100 million to these areas for creation of infrastructure, impart training to the people and develop the industry, director general mineral resources Rashid Hussain Malik told Dawn on Wednesday.
In a letter, the provincial governments have been asked to implement the guidelines given in the strategy for extending facilitation for developing smallscale mining in gem bearing areas and joining hands with private sector in developing lapidary as a cottage industry.
The federal ministries and relevant organizations have also been directed to assist the provinces in developing human resources in various gemstone related trades, acquisition of latest gemstone mining, cutting machinery and technologies.
The ministry of science and technology has also been directed to arrange lapidary experts from Thailand and Sri Lanka to provide resource information and impart training in gem trade centres being established by the private sector with the assistance of Export Promotion Bureau (EPB).
The EPB has separately been asked to intensify promotional activities on Pakistani gems and develop international marketing strategy. Khushhali Bank and other development financial institutions would extend financial assistance to the gemstone industry.
Rashid Hussain said that Rs100 million would be utilized by the provincial governments to train local people involved in the gemstone mining and give them latest machinery for mining, cutting and polishing on a rental basis.
He said the people would be issued licences without any charge for the mining and sale of precious stones and would be provided with an officially organized auction at the end of the field season to provide them reasonable prices.
On the larger scale, Hunza Rubi, Swat emerald and Mardan pink topaz would be given to the multinational companies. He said that major emphasis was on selling cut stone which had a price ratio of 100:1 against uncut stone.
Gemstone cutting and polishing centres would be set up in Lahore, Karachi and Peshawar and later in Muzaffarabad and Gilgit while export processing zones in collaboration with the private sector would finance construction of trade centres.
Rashid said that precision cutting and good polishing of gemstone increase their price by almost 10 to 50 times but it was done on very limited scale in Pakistan and that too with the obsolete machinery.
Around 30,000 people scattered throughout Pakistan were involved in the gemstone trade including cutting and polishing. About 500 cutting and polishing units are currently in operation at Lahore, Karachi and Peshawar but the standard was very low by international standards which resulted into wastage of precious natural wealth.
