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KARACHI: Pakistani gem and jewelry exporters and traders on Thursday urged the government to adopt modern technological methods and remove restrictions to improve the South Asian country's exports.

Last month, Pakistani Prime Minister Shehbaz Sharif urged authorities to upgrade the country's gem and gemstone sector to the status of an industry. According to a report by Pakistan's Ministry of Commerce, the country's pearl and gemstone exports to China saw a 47% increase in 2023, demonstrating the growing demand for Pakistani gemstones in China. Pakistan has huge reserves of emerald, ruby, sapphire, topaz, aquamarine and tourmaline gemstones.

Syed MinHajjuddin Shah, president of the All-Pakistan Association of Commercial Exporters of Raw and Unpolished Precious and Semi-Precious Stones, told Arab News that other countries were benefiting from precious stone exports by adopting modern technological methods where the Pakistan was losing.

“China is an important market for Pakistani gemstones, but other countries, including Sri Lanka, are benefiting,” Shah said. “Due to the lack of modern mining technology, our products are wasted during the mining process.”

The total import and export value of China's jewelry industry reached a record high of $145.334 billion in 2023, an increase of 8.62% year-on-year. Pakistani exports of gems and precious stones to China saw a 47% increase in 2023, indicating growing recognition of the quality of Pakistani gemstones among Chinese buyers, according to a Chinese media report.

Since 2023, the demand for colored gemstones in China has continued to grow, complementing the traditional asset of gold. According to a market study by the fund management company of China Gems and Jade Association (Beijing), the average price increase of colored gemstones across all categories in China in the first half of 2023 ranged between 30 % and 50%. Prices for larger or relatively rare gemstones have jumped 100 to 150 percent.

Shah said the conventional blasting methods used in Pakistan to extract gemstones result in fractures and cracks that reduce the quality and value of gemstones. This, in turn, makes them less desirable for use in jewelry and other applications.

“Adopting modern technologies for mining can save a huge amount of precious stones, which will ultimately lead to higher value addition and foreign exchange earnings,” he said. Pakistan can also increase its exports to Gulf countries.

Adnan Qadri, chairman of a standing committee on producers, manufacturers and exporters of gems and jewelry of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), told Arab News that last year, Pakistan's gemstone exports have experienced significant challenges and fluctuations.

He explained that this was due to Pakistan's decision to impose restrictions on the export of precious stones and jewelry in order to comply with Financial Action Task Force (FATF) conditions aimed at combating money laundering. money and the financing of terrorism.

“This led to a dramatic drop in exports, from $30 million to less than $10 million,” Qadri said. He said FPCCI has proposed measures to the government on how it can boost the country's gem exports.

According to official data, exports of precious stones declined by 82 percent and 10 percent in terms of quantity and value during the current fiscal year. Pakistan exported 966 kilograms of precious stones worth $5.6 million during the July-April period of the current fiscal year, compared to 5,436 kilograms worth $6.3 million exported during the same period last year.

FPCCI, the representative body of Pakistani traders and industrialists, has pointed out that restrictions on the export of precious stones and gold jewelry through courier services in Pakistan have led exporters to wrongly declare precious items like artificial jewelry, leading to the suppression of exports in the sector. .

“Pakistan's export policy hampers the growth potential of the gems and jewelry industry, which constitutes only a tiny fraction of the country's total exports (0.04 to 0.05 percent of exports total)”, noted the FPCCI in a budget proposal for the next financial year budget. , EF25.

Muhammad Zubair Motiwala, director general of the Trade Development Authority of Pakistan (TDAP), could not be reached for comments on the export strategy.