Pakistan Makes Bold Move to Optimize $450B in Untapped Gemstone Wealth

Pakistan’s mountains have long whispered of hidden treasure — and now the country is making a serious bid to bring that wealth to the global jewelry stage. With an estimated $450 billion in untapped gemstone reserves, the government of Pakistan is launching an ambitious plan to transform its underdeveloped gem sector into a billion-dollar export powerhouse.

The initiative is being spearheaded by Prime Minister Shehbaz Sharif, who earlier this year approved the nation’s first comprehensive policy framework for gems and precious stones. The strategy aims to boost annual exports from just $5.8 million today to $1 billion within five years — a staggering leap that reflects both the country’s potential and its current underperformance.

Pakistan’s gem deposits are world-class. Regions such as Khyber Pakhtunkhwa, Gilgit-Baltistan and Azad Jammu and Kashmir (known as AJK) are renowned among collectors for producing vivid emeralds, richly saturated rubies, sky-blue aquamarine and fine topaz. Yet, despite this abundance, official production has been minimal.

A cornerstone of the new plan is the creation of three “Centers of Excellence” dedicated to gemstone cutting, polishing and jewelry manufacturing. Two sites have already been identified in Gilgit-Baltistan and AJK, with a third planned for Islamabad. These facilities are designed to equip local workers with modern lapidary skills, enabling Pakistan to export finished gemstones rather than lower-value rough.

To further attract international attention, Pakistan will host its first-ever International Gemstone Expo in July 2026, positioning itself as an emerging hub for buyers, investors and designers seeking new sources of high-quality gems.

So why has such a resource-rich sector lagged so far behind? The challenges are deeply rooted. For decades, gemstone mining in Pakistan has relied on outdated, labor-intensive techniques, limiting both yield and quality. Many deposits lie in remote, mountainous regions with limited roads and infrastructure, making extraction and transport difficult.

Equally significant is the lack of formalization. A large portion of gemstones are sold informally or exported as rough, uncut material — often without certification or branding — resulting in dramatically lower prices. Add to that regulatory inconsistencies, limited access to modern equipment and security concerns in certain regions, and it’s easy to see why international investment has been slow to materialize.

The government’s new approach seeks to change that narrative by modernizing mining practices, standardizing quality and building a skilled workforce. For gemstone aficionados, the payoff could be profound: a new pipeline of responsibly sourced, expertly cut gemstones that bring Pakistan’s extraordinary natural beauty to life in fine jewelry around the world.

Credit: Conceptual image by The Jeweler Blog using aichatapp.ai.