950811

Gemstone exports:

full potential not

being realiszed

RECORDER REPORT

KARACHI: Pakistan is not realizing its full export potential in the gemstones sector in the absence of a mineral development policy.

According to the findings of a report, by exploiting the emerold deposits of the Swat mines alone, the country could earn billions of dollars in foreign exchange.

Whereas during 1993-94 50,000 kilos were extracted from the Swat mines, in 1994-95 emerold extraction from these mines fell to nearly 49,000 kilos. The quantity extracted was only a fraction of the huge deposits, the report says.

Earnings from gemstone exports could increase substantially with more coordination between the public and private sectors in exploiting available reserves and exploring new avenues. The exports of gemstones during the period under review fatched hardly $3.8 million.

The principal buyers of Pakistani gemstones an Japan, Thailand, Hong Kong, Saudi Arabia, France, Italy, Germany, Holland, Belgium, UK, the USA are China. But more markets could be captured and varieties extended to include rubies, topazes and saphires.

Exports have remained somewhat stagnant for the last couple of years and in the past few months seen a substantial decline. There are a number of factors responsible for this decline - absence of a minerral policy and lack of infrastructure for developing the minerals sector being the major impediments.

The report also touches the marble industry. In this sector, around 356,034 tonnes marble were extracted which fetched the country $3.6 million. But this sum could also be raised by taking appropriate measures.

The report enumerates lack of infrastructure, absence of competent entrerpreneurs, non-availability of skilled labour and absence of incentives as some of the major factors obstructing the development of the marble sector. Besides, the hostile attitude of the tribal rulers of the areas where deposits are located also frustrates development projects of not only the mining, but other industries also.

The report calls for formulating a five-year mineral development policy envisaging a package of incentives for the mineral sector including provision of soft-term loans and duty-free import of machinery.