Pakistan’s Bold Move: ‘Gem City’ in Islamabad to bring Investment

Pakistan is making headlines with an ambitious and groundbreaking plan to transform its capital into a global hub for precious stones. The government has announced the establishment of a specialized "Gem and Jewelry City" in Islamabad to capitalize on the nation's untapped gemstone wealth and attract substantial foreign investment. This monumental decision has the potential to reshape Pakistan's economic landscape and elevate the country's profile in the global gemstone market.

The Untapped Treasure Trove

Pakistan's northern and northwestern regions are home to an astonishing array of gemstones, including peridot, aquamarine, topaz, ruby, and emerald, recognized globally for their exceptional quality. Despite this natural wealth, the country has struggled to fully capitalize on its resources. Approximately 80% of gemstone exports are shipped in raw form, forfeiting significant revenue that could be generated through value addition.

With reserves encompassing 18 types of gemstones and 178 major mining licenses issued, Pakistan is sitting on a goldmine—quite literally. Yet, inefficiencies in mining, processing, and marketing have long stifled the sector's potential.

The Vision Behind ‘Gem City’

Industries and Production Minister Rana Tanveer Hussain recently chaired a high-level meeting of the Prime Minister’s Committee on Precious Stones to finalize plans for the Gem and Jewelry City. The initiative aims to modernize the sector by introducing an integrated system that includes gemstone mining, processing, and export facilities.

“This Gem City will serve as a beacon of innovation and excellence,” stated Minister Hussain. “It will not only boost foreign investment but also position Pakistan as a leader in the global gemstone industry.”

The proposed Gem City will include:

• A Gemstone Export Processing Center: Streamlining the export process to enhance efficiency and profitability.
• An Authority for Precious Stones: Overseeing and regulating mining activities for sustainable resource utilization.
• Jewelry and Gemstone Centers at Airports: Offering high-quality gemstone products to international travelers, further expanding market reach.

International Appeal: A Global Strategy

This initiative isn’t just about local development; it’s a calculated move to attract foreign investors and industry leaders. Prime Minister Shehbaz Sharif has already hinted at granting the gemstone sector “industry status,” a game-changing decision that could incentivize international partnerships.

In 2023, Pakistan witnessed a staggering 47% increase in gemstone exports to China, underscoring the immense potential of this sector. The Gem City initiative aims to build on this momentum by leveraging Pakistan’s competitive edge: high-quality gemstones at relatively low costs.

Challenges and the Way Forward

Despite its promise, the gemstone sector faces significant hurdles, including outdated mining practices, insufficient infrastructure, and lack of skilled labor. In August, PM Sharif directed authorities to develop a comprehensive strategy for gemstone mining in the Gilgit-Baltistan region, emphasizing the need to minimize wastage and maximize export revenue.

The establishment of the Gem City signals a clear commitment to addressing these challenges. With modern technology and training programs, the government aims to revolutionize mining techniques and equip local workers with the skills needed to compete in the global market.

Why Gem City Matters

The establishment of the Gem and Jewelry City is more than an economic initiative; it’s a statement of intent. Pakistan is stepping up to claim its rightful place in the global gemstone market, a space traditionally dominated by countries like Thailand and Sri Lanka.

This initiative also aligns with broader goals of economic diversification. With dwindling revenues from traditional sectors, Pakistan must explore alternative avenues to boost its economy. The gemstone sector, with its enormous untapped potential, presents a lucrative opportunity.

A Future-Ready Pakistan

The government’s proactive approach—ranging from creating export-friendly policies to establishing gemstone centers at international airports—reflects a forward-thinking vision. This is Pakistan positioning itself as a global player in an industry valued at billions of dollars annually.

The success of Gem City could serve as a blueprint for other industries, showcasing how strategic investments and targeted initiatives can transform sectors plagued by inefficiencies.

Website Source For more information on Pakistan’s groundbreaking Gem City initiative, visit Arab News.