Farooq Awan

The federal government has proposed allowing the import of gemstones for local processing and re-export under the National Policy to Realize Pakistan’s Gemstone Potential 2026–30, removing regulatory constraints that have limited domestic beneficiation capacity.

According to the policy document prepared by the Ministry of Industries and Production, Pakistan’s gemstone processing sector faces inconsistent supply of suitable rough material due to seasonal mining output, informal trade and restrictions under existing foreign-exchange regulations.

The policy identifies Clause 16 of Chapter 18 of the Foreign Exchange Manual as a key constraint, as it restricts import of gemstones to parity with export value. This requirement has discouraged formal import of rough gemstones for processing.

Under the new policy, the Ministry of Industries and Production, in consultation with the State Bank of Pakistan, will introduce changes to facilitate the formal import of gemstones for value addition. In addition, gemstone processing businesses will be facilitated under the Export Facilitation Scheme (SRO 957(I)/2021).

The policy notes that countries such as India and Thailand have successfully built major export industries by processing imported gemstones. Allowing similar arrangements in Pakistan is intended to ensure a reliable supply of raw material for domestic processors.

According to the document, eligibility for importing gemstones under the revised framework will be limited to businesses registered with the proposed statutory authority, reinforcing formalization and compliance objectives.

The policy states that easing imports for processing will support domestic cutting and polishing units, improve capacity utilization and strengthen Pakistan’s position in regional value chains.

Credit: INP-WealthPk