Commerce ministry backs creation of Minerals Division for coordinated oversight

The Ministry of Commerce has endorsed a proposal to establish a dedicated Minerals Division, modeled after the Petroleum Division, to ensure specialised oversight and improved coordination between the federal and provincial governments through the Council of Common Interests (CCI), Business Recorder reported, citing official documents. 

Pakistan’s gemstone sector has significant potential to contribute to economic growth, foreign exchange earnings, and employment generation. Rich deposits of emeralds, rubies, aquamarines, and topaz are found in Gilgit-Baltistan, Khyber Pakhtunkhwa, and Balochistan.

Despite these resources, the ministry noted that the gemstone industry remains underdeveloped due to unregulated mining, minimal value addition, smuggling, and the export of unprocessed stones. 

The Standing Committee on Commerce had earlier proposed establishing a dedicated authority for gemstone exports under the Commerce Division to address these issues.

The Ministry of Industries and Production has presented a similar plan, while MNA Gul Asghar suggested creating a separate Minerals Division to oversee the sector during a recent parliamentary meeting.

In its brief, the Commerce Ministry supported the idea of a dedicated Gems Authority to manage the entire value chain—from mining to export—ensuring environmentally responsible practices, training in cutting and polishing, certification, and technology access. 

Pakistan’s current gemstone exports stand between $5 million and $7 million annually, a small fraction of their potential, the ministry said.

The ministry suggested that such an organisation could help formalise the sector by enforcing quality standards similar to those of the Gemological Institute of America, promoting international marketing, and curbing illicit trade.

The Commerce Ministry said the idea of a separate Minerals Division “deserves serious consideration,” given the sector’s distinct geological and fiscal characteristics. It stated that such a division could work closely with the Geological Survey of Pakistan to map resources, regulate mining operations, and promote environmentally sustainable practices.

The ministry also recommended that the Standing Committee guide on the institutional placement of the proposed Gems Development Entity, emphasising that the initiative could formalise the gemstone sector and increase exports tenfold within a decade.