PRECIOUS and semi-precious stones used in jewellry increase the value of ornaments. Pakistan has huge deposits of the world’s best and rare varieties of gemstones. The finest quality emeralds and rubies, which are usually classed as second and third most precious gems after diamonds, are found in Pakistan.

The commercial deposits of rare pink topaz, amethyst, aquamarine, lapis lazuli, as well as non-commercial deposits of sapphire and traces of diamonds are found in Balochistan and Tharparkar mines.

Columbia, Brazil and Zambia are the world’s major emerald-producing countries. These three countries met about 90 per cent of the world emerald demand while the rest of the demand is fulfilled by Afghanistan, Pakistan, Zimbabwe and Russia.

Other famous Pakistani gemstones include deep green to bluish green emeralds of Swat, rare variety of pink topaz of Mardan and Gilgit, pink ruby crystals of Hunza and Azad Kashmir, bi-colour tourmalines and sky-blue aquamarines of Gilgit, peridots of Kohistan, sapphires and amethysts of Azad Kashmir.

Precious stones are processed in Pakistan but the present status of the industry is far behind the international standard. Therefore, the sector, which initially had attracted world attention, has been rendered unproductive and its inadequate infrastructure in the mining areas, suffers from high rate of pilferage and leakage.

Presently, out of the 14 sites, only one at Mingora, is in operation on regular basis and the Shimozai mine is working under a private entrepreneur. Most of the mines, located in tribal areas, include Gando, Nawa Killi and Khamori in Mahmond Agency, Maimda and Mar Darra in Bajur Agency, Khaltaro in Gilgit, Alai in Indus Kohistan.No authentic data are available about any of them.

However, emerald production at Mingora has increased more than ten-fold from 5.6 to 60 kg per year. Charbagh, Makhad and Gujjar Killi mines, which were producing 0.63 kg, 0.2 kg and 5.7 kg emerald annually, lie idle at present.

Peridot stone is found in Kohistan area near Dassu at a place called Sput. It is not as expensive as emerald but Pakistan has a substantial world market share. Though, Madagascar and Burma also produce peridot but Pakistan controls the international market, primarily due to finer quality and the abundance of the material.

In Pakistan the mining of gem-bearing marble is still carried out in a primitive fashion—rocks are broken with hammers, handpciks, pneumatic drills or dynamite. Labourers who are unskilled, damage gems embodied in rocks. The traditional method of exploration like dynamiting results in huge wastage, particularly for emerald which is sensitive, not only to blast but even to its noise. Emerald and peridot, which have a ratio of 35 and 20 per cent respectively, could hardly afford such old techniques.

Moreover, numbers of craftsmen are declining, and younger generation, seeing no future prospects has opted for other professions. This has resulted in low productivity and inferior designs, which are not acceptable to the quality-conscious world market. Due to the prevailing atmosphere, a huge quantity of high-priced gems are smuggled and the biggest beneficiary is India whose jewellry exports has gone up to about $5 billion per annum.

The biggest hindrance in the jewellry export are middlemen who could afford to pay the cash for import duty and value-added tax at foreign airports, which many exporters of modest means could not afford. If the gems industry and trade are given the status that they deserve and the induction of modern exploration, processing and cutting techniques are introduced the size of gems and jewellry export could increase many-fold in a short time.

The other obstacle to export is that the local gems merchants and jewellers are not allowed to have concessional financing, like India, where they can get financing from the gold reserves at one per cent service charge.

Hong Kong, Thailand, India and China are the major importers of Pakistani rough stones. They cut and polish these gems and then export to the jewellers all over the world at much higher prices.

For the last many years smuggled jewellry in Pakistani markets is flooded with brand names of jewellry of higher cartage (24 karat) and much high value-added products. These items are produced on mass scale in the international markets and this jewellry over-runs the local jewellry trade as there is hardly any local jeweller who can claim to manufacture 24 karat jewellry and none on mass scale.

After setting the cutting and finishing facilities in the country the export of precious and semi-precious stones be discouraged in raw form and a local venue for the trading of the same be established so that local jewellers can have easy and less expensive access to these stones. The present practice is that stones from Pakistan are smuggled in raw form and imported into the country in cut and polished form at much higher price. As far as diamond is concerned no cutting industry exists in Pakistan. Although there is a sizable demand for the same through export orders from the local jewellers. It is demanded that the import of cut diamond be allowed freely against payment of customs duty and taxes at the import stage.

In spite of many odds, the total export of gems and jewellry from Pakistan increased from $10.3 million in 1991-92 to $26.10 million in 2000-01, thus showing an increase of approximately 255 per cent.

Surprisingly the export figures of precious and semi- precious stones from Pakistan indicate a decline of 9 per cent per annum, decreased from $3.76 million in 1991-92 to $2.17 million in 2000-01. This may be due to smuggling of gems.

The exports of gold jewellry increased from $6.55 million in 1991-92 to $23.93 million in 2000-01, showing an increase of approximately 370 per cent in 10 years. The main buyers of Pakistani gems and jewellry have been the Gulf States, Saudi Arabia, Hong Kong, Thailand, Singapore, Japan, China, Sri Lanka, Australia, Holland, France, Germany, Italy Switzerland, Canada, USA and UK. Recently some jewellry exports were also directed to African countries.

Export of gems and jewellry from Pakistan.