960427

Country losing $.5 bn

yearly in smuggling

of rough gemstones

HARIS ZAMIR

KARACHI: Nearly half a billion dollars are lost every year by Pakistan because of smuggling of rough gemstones (emeralds and rubies) to India, it is learnt.

According to a gemstone dealer of Zaibunnisa Street, a huge quantity of rough gemstones are smuggled to India, where these are cut, polished and sold in the international market at a very exorbitant prices. Foreign buyers instead of coming to Pakistan are visiting India to purchase these precious stones, he said.

He added that this state of affair has rendered gem cutters in Pakistan jobless. The exchequer has also suffered. "This is an effort on the part of Indians to paralyse the gemstone industry of Pakistan", he observed.

There is need to devise a well-defined and coordinated annual mineral policy, dealers said.

There is a great potential of export of gemstone if revolutionary steps are taken to exploit the mines. Gem exports could fetch billions of dollars, they said.

India has gemstones mines but is also importing rough gemstones from all over the world and is earning billions of dollars from the export of value-added products, similar is the case with Thailand, Korea and Far Eastern countries. Like India, Sri Lanka does not have raw diamonds and imports all its requirement from Belgium. But for the last two years it is earning 77 million dollars per annum through gemstone exports.

According to the Pakistan Gem Manufacturers and Exporters Association (PGMEA) the export of rough emeralds and rubies should not be allowed. If total ban is not considered feasible, then export of these stones below the export price of Rs. 1,000 per cerat may be restricted.

The association contended that there was no diamond industry in the country but diamonds worth about 1.20 billion rupees are smuggled each year out of the country and the volume is continuously increasing. Therefore there is need to establish a diamond cutting industry which will have a great potential of export.

High level research should be carried out for exploration of mining and processing of gemstones to increase production and export of Pakistan gems.

Further PGMEA has suggested that there should be no restriction on import of raw/semi precious and precious stones to be cut and polished in Pakistan. Such facilities should be strengthened in the country with public and private sector funds. It is said that India, Sri Lanka and Thailand have allowed import of rough gemstones duty and tax free.