Pakistan losing billions as outdated mining cripples gemstone sector

The federal government has raised fresh concerns about the state of Pakistan’s gemstone industry, warning that the country is missing out on billions in revenue because of old mining methods and undocumented exports.

These concerns were highlighted during a meeting of the Prime Minister’s Committee on Gemstone Policy. The session was chaired by Special Assistant to the Prime Minister Haroon Akhtar Khan, while Minister of State for Finance and Railways Bilal Azhar Kayani and Adviser to the Prime Minister Rana Ihsan Afzaal were also present.

A press statement issued after the meeting said Pakistan’s gemstone exports are still mostly undocumented, although formal registration is expected to begin soon. Officials noted that nearly half of the country’s gemstone output is wasted during extraction, mainly because miners rely on outdated tools and poorly controlled blasting and drilling. They added that an estimated 30 to 40 percent of precious stones are damaged in the process.

Lost opportunities

Committee members observed that the bulk of Pakistan’s gemstones are sent abroad in raw form with little to no value addition. This practice limits earnings even before the stones reach international buyers.

They also identified weak global partnerships and a shortage of foreign investment as major barriers holding the sector back.

Haroon Akhtar Khan said the use of modern mining equipment could raise production and help Pakistan tap into markets more effectively. He explained that proper value addition could multiply export earnings, since the country’s undocumented gemstone potential is believed to be around 2 billion dollars, compared with only 7 million dollars recorded formally.

He also voiced concern over undocumented nephrite exports and directed stakeholders to prepare a five year export analysis to guide future policy decisions.