Gems and Stones

            Gems and Stones

Overview

Pakistan is endowed with vast mineral resources and holds significant reserves of 18 varieties of gemstones, which are crucial for the ornament industry. Notable reserves include 70 million carats of emerald in Swat, 9 million carats of pink topaz in Mardan, 10 million carats of peridot in Kohistan, and approximately 200 million carats of ruby in the Pakistani Kashmir region. These gemstones are globally recognized for their high quality, particularly the pink to red crystals of ruby found in Hunza. Currently, Pakistan ranks 79th in the world in jewelry exports and is the 8th largest consumer of gems and jewelry.

The major export markets for Pakistani gems are Thailand, Sri Lanka, Western Europe, the USA, and East Asia. If the industry were to develop fully by adopting modern lapidary equipment and value-added processing practices, it could generate substantial revenue and markedly enhance Pakistan's economic landscape. Peshawar, recognized as a 'gems city', attracts buyers globally and underscores the region's potential as a hub for the gem trade. With the global Gems & Jewelry industry valued at US$255 billion and growing at an annual rate of 5.2%, there is significant room for Pakistan to expand its market share and elevate its position in the international arena. Pakistan is highly skilled in manufacturing and refinement of gems and jewelry and presently metropolitan cities of Lahore and Karachi are the major hubs of jewelry manufacturing. There are more than thirty major cities and nearly three hundred smaller cities / towns where jewelry manufacturing and trading occurs. In addition, there are at least 45,000 villages where jewelers operate as single-shop, manufacturing and selling units

 

Table 1: Gems and Jewelry Sector: An Economic Outlook(2022 ~ 23)

Indicator

Performance

Contribution to GDP

0.07 %

Number of Manufacturing Units

5,000 (operational mines)

>50,000 (establishments)

Employment Generation

300,000 (direct employment)

Total Export Value

$ 24.84 Million

Contribution to Pakistan’s Exports

0.1%

Share in Global Gemstone Trade

0.31%

Pakistan’s Ranking in World’s Exports

79th (Jewelry Exports)

Compound Annual Growth Rate (2018-2022)

14%

Quantity Exported

5466 KG (Gems)

Current Production

5466 kg

Annual Production

65.82 million metric tons

 Gems Manufacturing Cluster - Gilgit-Baltistan and KPK

Geographic Concentration:

  • The gemstone sector is primarily concentrated in Gilgit-Baltistan and the Khyber Pakhtunkhwa (KPK) province, particularly around Peshawar, which is rich in gemstone reserves.

Key Advantages:

  • Resource Availability: The region boasts an abundance of raw gemstones, providing a robust base for gem mining and preliminary processing.
  • Established Craftsmanship: The area is known for its skilled craftsmen, albeit utilizing outdated technologies.
  • Cultural Heritage: Long-standing traditions of gemstone cutting and jewelry making contribute to the sector's depth of knowledge and craftsmanship.

 

Jewelry Manufacturing Cluster - Karachi and Lahore

 

Geographic Concentration:

  • Jewelry manufacturing and retail operations are predominantly clustered in Karachi and Lahore, which are economic hubs close to large consumer markets.

Key Advantages:

  • Proximity to Markets: Located near large urban centers, these clusters have direct access to a vast consumer base for retail distribution.
  • More Organized Sector: Compared to the gems sector, jewelry manufacturing and retail are more structured, especially in these metropolitan areas.
  • Skilled Labor Pool: Access to a skilled workforce, capable of high-quality jewelry design and manufacturing.

 

Value Proposition for Investors in Jewelry:

  • Market Access and Branding: Investment in high-quality jewelry manufacturing can leverage Pakistan's natural gem resources to build a globally recognized brand.
  • Technological Advancement: Modern manufacturing techniques can improve efficiency and product quality, positioning the jewelry at a premium in international markets.
  • Skilled Workforce: Investing in training for artisans can elevate craftsmanship, differentiating Pakistani jewelry on craftsmanship and quality, appealing to luxury markets.

 

Product Diversification and Investment Prospects

Pakistan's gems and jewelry sector offers an extensive range of products including jewelry of precious metals, articles of semi-precious stones, rubies, sapphires, emeralds, and imitation jewelry etc. This assortment underlines the industry's commitment to diversification and highlights substantial opportunities for investment.

The gemstones and jewelry sector in Pakistan is positioned for significant growth, with a vast reservoir of precious and semi-precious gemstones that are globally recognized for their quality and beauty. The total export potential of the industry is around $33 million, yet there remains an untapped export potential of approximately $18.8 million, highlighting substantial opportunities for investment and development (refer to table 3 and figure 6 below).

For international investors, Pakistan offers a competitive edge with strategic advantages in cost and quality. The government has recognized the economic significance of this sector and is actively supporting its development through the establishment of institutions like the Gems and Gemological Institute of Pakistan, which aims to train individuals in gemstone processing. Further plans include the creation of a Gemstones City in Peshawar, which will centralize facilities for training, certification, polishing, cutting, and marketing under one roof, adhering to international standards. Potential investment opportunities lie in the following areas.

a.            Precious stones and semi-precious stones.

b.            Articles of jewelry made up of precious metals.

c.             Imitation Jewelry.

d.            Synthetic and reconstructed precious and Semi-Precious stone.

 Unearth Pakistan's Gemstone Treasure: Invest in a Sparkling Future!

A Land of Enchantment: Discover Pakistan's Gems & Jewelry Industry!

Pakistan, a land steeped in history and natural wonders, holds a hidden treasure trove waiting to be unearthed - its vibrant gems and jewelry industry. Blessed with a wealth of precious and semi-precious stones, coupled with a rich cultural heritage in craftsmanship, Pakistan offers a captivating opportunity for investors seeking a glittering future.

·         From Mine to Market: Invest in Pakistan's Gemstone & Jewelry Journey!

·         Where Beauty Meets Value: Discover Pakistan's Gems & Jewelry!

·         Unleash Your Sparkle: Invest in Pakistan's Thriving Gems & Jewelry Industry!

A Gemstone Trove Awaits

·         Unearthed Riches: Pakistan boasts significant reserves of emeralds, rubies, pink topaz, peridot, and more, renowned for their exceptional quality and beauty.

·         Global Recognition: Pakistani gemstones are sought after worldwide, particularly the stunning red crystals of Hunza rubies.

·         Skilled Artisanship: A long tradition of craftsmanship ensures intricate designs and meticulous attention to detail in Pakistani jewelry.

Invest in a Dazzling Future

·         Untapped Potential: Despite its impressive exports, Pakistan's gems and jewelry industry holds vast untapped potential, offering lucrative avenues for investment.

·         Favorable Investment Climate: The government actively supports the industry through initiatives like training programs and infrastructure development.

·         Competitive Advantage: Benefit from competitive labor costs and a readily available supply of raw materials.

A World of Diverse Opportunities

·         Precious and Semi-Precious Stones: Invest in mining, processing, and trading of high-quality gemstones.

·         Jewelry Manufacturing: Establish facilities to produce exquisite jewelry for domestic and international markets.

·         Imitation Jewelry: Capitalize on the demand for affordable, fashionable jewelry pieces.

·         Synthetic and Reconstructed Stones: Invest in the production of high-quality synthetic and reconstructed gemstones.

Twin Gems: The Power of Clusters

Pakistan's gems and jewelry industry thrives in two distinct clusters:

·         Gems Manufacturing Cluster (Gilgit-Baltistan & Khyber Pakhtunkhwa):

·         Abundant raw materials for gem mining and preliminary processing.

·         Renowned for skilled craftsmen, despite the use of traditional techniques.

·         A rich cultural heritage in gemstone cutting and jewelry making.

·         Jewelry Manufacturing Cluster (Karachi & Lahore):

·         Proximity to major consumer markets for retail distribution.

·         A more organized sector with skilled labor capable of high-quality production.

·         Access to a vast pool of skilled designers and artisans.

Unleash the Potential

·         Market Access & Branding: Leverage Pakistan's natural gem resources to build a globally recognized brand for high-quality jewelry.

·         Technological Advancement: Modernize manufacturing techniques to create premium jewelry that shines in international markets.

·         Skilled Workforce Investment: Invest in training programs to elevate craftsmanship and differentiate Pakistani jewelry through unparalleled quality.

Invest in a Gemstone Future

Pakistan's gems and jewelry industry offers a compelling proposition for investors:

·         Product Diversification: A wide range of products, from precious metal jewelry to imitation pieces, catering to diverse consumer preferences.

·         Investment Opportunities: Significant potential for growth across the entire value chain, from mining to finished products.

·         Government Support: Active government initiatives to promote the industry's development and create a thriving investment environment.

Become Part of Our Story

Join us in transforming Pakistan's gems and jewelry industry into a global powerhouse. Invest in a dazzling future and unearth the true potential of Pakistan's precious treasures!

Contact Us Today!

For further details, please visit the website of the Engineering Development Board: https://engineeringpakistan.com/.