ISLAMABAD: Though the country has hundreds of varieties of gemstones, exports are decreasing due to lack of government support, high taxes and lack of processing facilities, gem dealers said at an exhibition on Monday.

The exhibition of gemstones was organised by the All Pakistan Commercial Exporters Association of Rough and Un-Polished Precious and Semi Precious Stones (APCEA).

About 70 dealers of gems from across the country had established stalls.

Former APCEA president Haji Dost Mohammad told Dawn Pakistani rubies are famous across the world due to their beauty, quality and shine.

“Rubies can cost about $20,000 per carat but there is almost no demand for such expensive gemstones in Pakistan. These gems are exported to a number of countries including France, USA, Germany, Japan and Thailand. Our rough gemstones are mostly sent to Thailand where they are cut, polished and applied finishing to,” he said.

Mr Mohammad added that Pakistan exported gems worth $3.2 million in 2017 and $1.67 million in the first seven months of the current year.

“This shows that our exports are decreasing and there is an immediate need to look into the issue. We should learn from India which has facilitated dealers and also allowed free import of gemstones due to which gemstones from across the world are sent to India for cutting, polishing and finishing because there is no duty on them. We have a 35pc import duty on gems here,” he said.

“We do not get visas for other countries to market our products and have to rely on middlemen who take their cut,” he said.

Mr Mohammad suggested the government formulate policies and take APCEA on board.

A participant of the exhibition, Syed Sajjad, who belongs to Karachi, also talked about the lack of government facilitation for Pakistani gem dealers.

“Everyone says exports should be increased but no one makes export-friendly policies. The government should withdraw the 30pc tax on imports so that the cutting, polishing and finishing industry of gemstones prospers,” he said.

Mohammad Ali, owner of the Galaxy Gemological Institute, which provides educational and laboratory assistance regarding gemstones, said there is no institute in Pakistan which offers quality diplomas on gemstones.

“Though it is said that Pakistan has many gem stone reserves, but no survey has been conducted yet regarding the quality of gemstones. We are still referring to a 40-year-old survey. The Geological Survey of Pakistan is very capable of conducting a survey though,” he said.

“Fake gemstones are made across the world and we are the only institute in Pakistan which can certify if the gem stone is natural or artificial and what its cost should be. I suggest the government lift the duty on importing gemstones because that is how the cutting, polishing and finishing of gemstones can be started here,” he said.

Published in Dawn, August 7th, 2018