Pakistan loses $5 billion due to smuggling of precious gemstones

A parliamentary committee on commerce revealed on Friday that precious gemstones were smuggled out of Pakistan, causing a $5 billion loss to the country.

The meeting of the National Assembly's subcommittee on commerce was held under the chairmanship of Atif Khan.

During the meeting, it was disclosed that a gemstone authority or centre never existed in Pakistan until the federal government established the Gemstone and Jewelry Facilitation Wing in 2006.

The authority has five centres in the country, however, none of them are operational.

Despite being the eighth largest producer of gemstones in the world, Pakistan has a poor track record of generating revenue through the export of precious stones.

Pakistan has earned only $8 million, whereas the export value had once reached $1.4 billion, committee member Gul Asghar noted.

Thailand is the primary beneficiary of gemstone smuggling, receiving the majority of smuggled stones and generating billions of dollars in profit.

When asked about the origin of these gemstones, Gul Asghar responded that 30-40% come from Afghanistan and are then smuggled abroad through Pakistan.

According to Asghar, the gemstone and jewellery sector in India provides jobs for 5 million people and generates $45 billion in foreign currency through exports.

He called for the establishment of relevant authorities and the opening of the Afghan border to enhance trade.

The committee also learned that rubies from Swat, Gilgit, and Kashmir regions are considered more precious than Western diamonds.

Gul Asghar mentioned that a Pakistani ruby was once sold in India for $18 million.

He suggested that Pakistan could increase its exports to China by sporting industrial minerals and antimony which are valued at Rs1.5 million per ton.