Gems, jewellery authority on cards; govt mulling 'gold bank'
The federal government has finalised the rules and regulations of the National Gems and Jewellery Authority which would be announced in the coming days to enable the sector earn its potential $13 billion per annum in exports.
The disclosure was made by the chairman of the Prime Minister Task Force on Gems and Jewellery, Engr Gul Asghar Khan in a meeting with a 15-member delegation of the Gold & Gems Art Promotion Council Pakistan (GGAPCP) and Lahore Division Sarafa & Jewellers Association (LDS&JA).
"Jewellers Towers will be set up in all the major cities of the country where display centres, training centres, jewellers' shop and manufacturing facilities for gems and jewellery businessmen will be available," Khan said.
"These can be constructed under public-private partnership model, exempted of tax for 10 years, and source of investment from the constructor will not be asked." Khan assured the delegation that all the issues being faced by the jewellers' community, including taxes, would be solved in consultation with them.
He expressed his disappointment on SRO 760 and other such laws which hindered development of this industry. "Around 200 tonnes of gold business is done in Pakistan every year, while 100 tonnes gold is recycled," he said, while adding that the government was considering setting up a "gold bank, where people can deposit their ornaments and get profit in return in shape of gold."
GGAPC Pakistan President Muhammad Ahmad, who led the delegation, said the industry should be treated on an equal footing with other sectors. "If given due support, it (gold, gems and jewellery) can prove second export-oriented industry after cotton," he added.
Speaking of the inadequacy of latest technology in the industry, he urged for importing latest mining technologies from abroad for better results to avoid damages to minerals on a largescale. He called for making arrangements for availability of subsidised equipment and to advocate and familiarise our workers with the same.
GGAPC Pakistan leaders also suggested restoring the facilities of provision of necessary fund from the Export Development Fund (EDF). On export of gems, the exporters get paid 57 percent of the total export by banks under the Refinance Scheme.
It was suggested that this amount should be increased to 80 percent of the total export value.
Businessmen dealing in gold and silver through banking transactions should be given over draft facility and bank loan should be extended for branding or setting up refinery. Return of gold confiscated by the authorities should be ensured after payment of fine as in majority of cases such gold was neither stolen nor smuggled, rather it was a common asset of different jewellers and its confiscation damaged their business, they added.
Ahmad presented the 50 years story of struggle and achievement of the GGAPC Pakistan and LDS&JA.
Khan appreciated the efforts of both organisations and said that the government was encouraging people, who made a difference instead of those toeing the status quo.