Pakistan’s Gemstone Industry: A Billion-Dollar Opportunity Waiting To Shine – OpEd
Nestled in the heart of Peshawar, Namak Mandi is a treasure trove of Pakistan’s untapped gemstone wealth, pulsating with the energy of traders, artisans, and buyers who have kept the ancient tradition of gemstone trade alive for generations. Despite its immense potential, the industry has largely remained informal, functioning within a $300 million shadow economy. However, a transformation is on the horizon, one that could elevate Pakistan to a global leader in the gemstone trade.
Pakistan is home to the world’s fifth-largest high-quality gemstone reserves, with deposits spread across Khyber Pakhtunkhwa and Gilgit-Baltistan. The country boasts an impressive array of precious stones, including Swat’s emerald, Mardan’s topaz, Mohmand’s nephrite, and Azad Jammu and Kashmir’s ruby. These natural riches, if harnessed properly, have the potential to make Pakistan a formidable force in the international gemstone market. Experts estimate that the country can annually export 800,000 carats of ruby, 87,000 carats of emerald, and five million carats of peridot, translating into millions of dollars in foreign exchange earnings.
At the heart of this industry lies Namak Mandi, a historic market that handles approximately 70 percent of Pakistan’s undocumented gemstone trade. The market is a bustling hub where traders from across the country and beyond converge to buy and sell precious stones. It serves as a critical link between Afghanistan’s vast gemstone reserves and the global luxury markets, with Afghan traders controlling a significant portion of the business. While this cross-border connectivity has added to Namak Mandi’s strategic importance, it has also led to significant revenue losses for Pakistan due to the unregulated nature of the trade. Smuggling alone costs the country nearly $90 million annually, underscoring the urgent need for formalization and regulatory oversight.
The industry’s reliance on traditional methods has kept it from achieving its true potential. Nearly 15,000 gemstone artisans, whose craftsmanship brings these stones to life, remain unrecognized due to the absence of an official industry status. The lack of certification and modern infrastructure further restricts Pakistan’s access to high-end international markets. Many artisans still rely on manual polishing techniques, which, while showcasing their exceptional skills, limit the competitiveness of the final product in the global market. Without proper regulation, Pakistan’s gemstone sector is estimated to be losing a staggering $2 billion annually, according to the United Nations Development Programme.
Despite these challenges, positive strides are being made to formalize and modernize the sector. The federal cabinet has approved a draft act for the establishment of a dedicated Gems & Jewelry Authority, a move that is expected to bring much-needed regulation, certification, and industry recognition. Over the years, the Gems & Gemological Institute of Pakistan has trained more than 4,500 miners and students, equipping them with the skills necessary to enhance the value of Pakistan’s gemstones. The China-Pakistan Economic Corridor (CPEC) is also unlocking new opportunities, providing a platform for the gemstone industry to expand its footprint on the global stage.
One of the most promising developments is the establishment of Peshawar Gemstone City, an initiative that aims to revolutionize Namak Mandi’s trade landscape. The project envisions a state-of-the-art facility that will provide training, certification, cutting, polishing, and marketing support to traders and artisans. By introducing modern machinery and techniques, it will ensure that Pakistan’s gemstones meet international standards, thereby increasing their value and appeal. The formalization of Namak Mandi’s trade could transform Pakistan’s gemstone sector into a multi-billion-dollar industry, attracting foreign investors and opening up new markets.
Beyond the economic benefits, the formalization of the gemstone trade holds profound social implications. Over 200,000 people in Khyber Pakhtunkhwa, including nearly 50,000 in Peshawar, depend on the industry for their livelihoods. Ensuring fair wages, better working conditions, and access to international markets would significantly improve their quality of life. Recognizing gemstone artisans and traders as legitimate stakeholders in the economy would empower them, preserving and promoting their centuries-old craftsmanship.
Pakistan’s gem exports have the potential to rival those of Colombia’s emeralds if the right measures are put in place. A dedicated Gem Export Center could unlock half a billion dollars in annual revenue by streamlining trade, enhancing transparency, and eliminating middlemen. With formal recognition, proper regulation, and strategic investment, Pakistan can emerge as a key player in the global gemstone market, competing with the world’s best while preserving its rich heritage.
The story of Namak Mandi is not just about trade; it is about resilience, craftsmanship, and the promise of a brighter future. For too long, this hidden treasure has remained in the shadows, but with the right vision and commitment, it can illuminate the world stage. The transformation of Pakistan’s gemstone industry is more than just an economic imperative; it is an opportunity to showcase the country’s rich natural wealth and human talent to the world. With the right policies and sustained efforts, Pakistan can turn its untapped gemstone reserves into a powerful engine for growth, prosperity, and international recognition.