The federal government has approved a comprehensive five-year strategy to regulate and expand Pakistan’s precious stones sector, aiming to channel billions of dollars’ worth of gemstones into the formal economy. Pakistan is home to precious stones valued at more than 450 billion dollars, including an estimated 200 million carats of ruby and 70 million carats of emerald, along with significant reserves of other gemstones that remain largely underutilized due to weak regulation and outdated practices.
The proposed plan focuses on improving registration, compliance, and traceability across the gemstone industry while supporting up to 610 exporters over the next five years through access to international exhibitions and global markets. A central regulatory authority is set to be established to oversee business registration, coordinate with provincial governments, and facilitate exporters. This body will include federal and provincial representatives and act as the custodian of the national gemstone policy.
As part of the reforms, a dedicated office will be created to ensure the safe return of unsold export consignments, while electronic payment gateway facilities will be introduced to improve transaction transparency and ease of doing business. To strengthen legal trade and value addition, six specialized working groups have already been formed to address banking and financial reforms, refund mechanisms for unsold goods, modernization of mining practices, and streamlined business registration processes.
Officials estimate that improved registration and traceability could generate more than 60 million dollars in additional value, while all relevant institutions will be required to submit quarterly progress reports under a national action plan. Authorities have also warned that outdated gemstone processing techniques are currently causing losses of up to 70 percent of potential value, highlighting the urgency of reforming the sector to unlock its full economic potential.
