Government Approves National Gemstone Policy to Unlock Pakistan’s $450 Billion Potential
Pakistan’s federal government has given the green light to the National Gemstone Policy 2026–2030, a sweeping reform effort aimed at finally unlocking the country’s vast, largely untapped gemstone wealth. According to sources who spoke to Business Recorder, initial federal funding will be required to establish a new statutory authority and roll out the policy’s key initiatives.
A Massive Resource, Barely Tapped
The scale of the opportunity here is genuinely striking. The Ministry of Industries and Production briefed the Economic Coordination Committee that Pakistan holds some of the richest deposits of precious and semi-precious gemstones anywhere in the world, with estimated reserves exceeding $450 billion. Yet despite sitting on that kind of natural wealth, official gemstone exports have remained stuck at just $5–7 million annually, a mere 0.3 percent of global trade in the sector.
That gap between potential and performance is about as stark as it gets in Pakistan’s natural resource landscape, and it points to a sector that has, for decades, operated almost entirely outside the formal economy.
Why the Sector Has Struggled
The scale of informality is hard to overstate: more than 95 percent of Pakistan’s gemstone trade is estimated to happen through informal channels. Layered on top of that informality are a host of structural problems: fragmented governance, an absence of credible certification and valuation systems, high wastage rates in artisanal mining operations, limited access to financing and international markets, and significant foreign exchange leakage as gems move through unofficial trade routes rather than the formal banking and export system.
Together, these issues have effectively prevented Pakistan from capturing anywhere near the true economic value of its gemstone resources, leaving a genuinely world-class natural asset chronically underdeveloped.
A Reform Effort Years in the Making
To tackle these challenges, the prime minister formed a high-level committee back in September 2025 tasked with recommending concrete reforms. The policy that’s now been approved emerged from extensive consultations spanning federal and provincial governments, regulators, financial institutions, trade bodies, industry stakeholders, and international experts, and it draws on lessons from countries like India, Thailand, Sri Lanka, and Myanmar, all of which have successfully grown their gemstone exports through formalisation, certification, and value-added processing.
The Policy’s Three Pillars
According to the Ministry of Industries and Production, the policy is built around establishing a transparent, credible ecosystem that formalises the entire gemstone value chain, encourages domestic value addition, and positions Pakistan as a trustworthy global source of ethically mined, properly certified gemstones. The strategy rests on three core pillars: formalisation through registration, traceability, and certification; growth and value addition through modernised mining practices and improved access to financing; and global competitiveness through alignment with international trade and quality standards.
A New Regulatory Authority Takes Shape
At the heart of the policy is the creation of a statutory National Gemstone Authority, formed by merging the existing Pakistan Gems and Jewellery Development Company, along with its staff and assets, into the new body. This authority will regulate and coordinate the sector, maintain a national business registry, implement certification and traceability systems, facilitate trade, and serve as the overall custodian of the policy going forward.
To further strengthen export credibility, the policy also proposes setting up a National Warranty Office, responsible for standardised inspection, valuation, certification, and sealing of export consignments. This office will work in coordination with Pakistan Customs, the Pakistan Single Window platform, banks, and courier services, aiming to reduce trade disputes, secure logistics, and support a smoother transition toward formal export channels.
Tackling Under-Invoicing and Building Traceability
To address longstanding problems with under-invoicing and unreliable trade data, the policy introduces minimum export price benchmarks along with Pakistan-specific HS codes for gemstones. A National Gemstone Business Registry will assign each registered trader a unique identifier linked directly to customs, banking, and certification systems, creating a much clearer paper trail than currently exists.
On the trade facilitation side, the policy outlines frameworks for temporary exports, returns and refunds, incorporating gemstones into Pakistan’s B2C e-commerce export regime, and enabling digital payment systems in coordination with the State Bank of Pakistan, all changes aimed at making formal, documented trade genuinely more convenient than the informal alternative.
Investing in Mining and Value Addition
Beyond trade facilitation, the policy also emphasises boosting mining productivity and domestic value addition. Planned measures include machinery rental pools, demonstration mines, controlled access to explosives for mining operations, expanded cutting and polishing facilities, skills development programmes, and easier imports of rough stones and modern mining equipment. Collectively, these steps aim to reduce the high wastage rates that have historically plagued artisanal mining and improve overall recovery of valuable material.
Building a Global “Pakistani Gemstone” Brand
For longer-term competitiveness, the policy places real emphasis on branding and global positioning, working toward internationally recognised certification systems and developing a unified “Pakistani Gemstone” brand, supported by dedicated marketing campaigns and participation in major international exhibitions.
How It Will Be Implemented
Implementation will be guided by a National Action Plan and overseen by a Steering Committee led by the Minister for Industries and Production, with the new authority acting as the central coordinating body on the ground. While initial federal funding will be needed to get things off the ground, the Ministry noted that the authority is expected to become largely self-sustaining over time through service charges and fees. Rolling the policy out will require enabling legislation along with amendments to relevant rules, SROs, and State Bank regulations.
Ambitious Targets by 2030
The policy sets a clear numerical target: growing gemstone exports to around $500 million annually by 2030, a massive leap from current levels. Beyond the export figure itself, the government is hoping the reforms will meaningfully reduce informal and illicit trade, boost foreign exchange earnings, create skilled employment opportunities, and support regional development, particularly in Gilgit-Baltistan, Khyber Pakhtunkhwa, and Azad Jammu and Kashmir, regions where much of Pakistan’s gemstone wealth is actually located.
A Broad Consensus Behind the Reform
The policy received in-principle approval from the prime minister back on January 9, 2026, subject to further stakeholder consultation. Since then, multiple rounds of meetings have been held to build consensus, incorporating feedback from the Ministries of Commerce and Energy, the State Bank of Pakistan, the Federal Board of Revenue, Pakistan Post, the Pakistan Mineral Development Corporation, and various industry representatives. According to officials, all stakeholders involved have expressed support for the policy in principle, suggesting a genuinely broad coalition behind this attempt to finally bring Pakistan’s gemstone sector into the formal economy.
