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The government is evaluating a proposal to create a dedicated minerals division after the Ministry of Commerce supported establishing a specialised body to reform Pakistan’s gemstone industry.
The Ministry of Commerce has endorsed the idea of forming a new minerals division to improve oversight of the gemstone sector and strengthen coordination between federal and provincial authorities through the Council of Common Interests (CCI). Officials said the model would be similar to the Petroleum Division and allow for targeted policy development.
Pakistan is home to substantial deposits of gemstones including emeralds, rubies, aquamarines, and topaz found across Gilgit-Baltistan, Khyber Pakhtunkhwa, and Balochistan. Despite this natural wealth, the ministry noted that the gemstone industry has not reached its potential due to unregulated mining, low value addition, smuggling, and the export of unprocessed stones.
Earlier, the parliamentary Standing Committee on Commerce had suggested establishing an authority under the Commerce Division to manage gemstone exports. The Ministry of Industries and Production also shared a comparable proposal, while MNA Gul Asghar recently called for a separate minerals-focused structure during a committee meeting.
Govt Eyes Gems Authority to Expand Exports Beyond $7 Million
According to the Commerce Ministry, a dedicated Gems Authority could oversee the entire chain from mining to export. The body would be responsible for environmentally responsible extraction, training in cutting and polishing, certification processes, and access to modern technology. Current gemstone exports stand at only $5 million to $7 million annually, far below estimated potential.
The ministry added that regulating the sector through a specialised organisation would help enforce quality standards similar to those used by the Gemological Institute of America. It could also strengthen global marketing efforts and reduce illicit trade by formalising mining operations.
Officials said the proposal for a minerals division deserves serious consideration because the sector has unique geological and fiscal characteristics. Such a division could work with the Geological Survey of Pakistan to map resources, regulate mining activity, and promote sustainable development practices.
The ministry also advised the Standing Committee to guide the institutional placement of the proposed Gems Development Entity and stated that a well-organised structure could formalise the industry and raise gemstone exports tenfold over the next decade.
