A Brief History of the Mining and Business of Gemstones in Pakistan

Pakistan came into existence in 1947 after partition of the subcontinent. A review of its history before the British rule reveals that its people and kings cherished gemstones highly. The relics of the Gandhara and Indus civilisations are a testimony to this fact. After its founding, Pakistan has given little, if not negligent, attention to this sector.

Gemstones Corporation of Pakistan was established in 1979 to effectively explore Pakistan’s own share of wealth in minerals and to facilitate gemstone mining and business in Pakistan. It had some valuable influence but ultimately was liquidated in 1997 and hence abandoned. There are two bodies now working for the welfare and growth of this industry in Pakistan: Trade Development Authority of Pakistan (formerly Export Promotion Bureau) and All Pakistan Commercial Exporters Association of Rough & Un-Polished Precious & Semi Precious Stones (APCEA). Since 1994, the annual Pakistan Gems and Mineral Show has been held in Peshawar with their joint collaboration, during four days in October. It has not as yet, however, attracted any potential buyers from abroad. Its few stalls on display cannot fulfill any of the requisite needs of experienced buyers from abroad, especially the USA and Europe.

The northern and northwestern parts of Pakistan are shrouded by the three world-famous ranges called Hindukush, Himalaya, and Karakorum. In these mountains have been found nearly all the minerals Pakistan currently offers to the world market, including aquamarine, topaz, peridot, ruby, emerald, amethyst, morganite, zoisite, spinel, sphene, and tourmaline.

The question arises as to how these were explored: by the very people living in and beside the hills and not as a result of any government involvement or support, a fact that the government of Pakistan cannot refute. In the industrial minerals sector, of course, the government-owned mining corporation is effective and has been of great help to local investors. Pakistan, through its one body, the Ministry of Petroleum and Natural Resources, has always recruited foreign investment in mining precious and semi-precious stones in Pakistan. But the rhetoric of the ministry is so inadequate and ineffective that no influential mining venture by any foreign institutes or individuals has taken place. One significant reason is the reputation for unreliability in the survey/analysis reports conducted by any government-sponsored institute in Pakistan.