Pakistan has been gifted with abundant resources of several precious and semi-precious gemstones, at present mostly found in Northern Areas and NWFP, but with a huge future potential in Balochistan. Most important of the currently found stones are emeralds of Mingora (Swat), pink and golden topaz of Katlang (Mardan) and aquamarine of Chitral and Neelam Valley. At present, there is no formal survey available to identify the geological resources of gemstones in the country. Furthermore, due to lack of realization of its importance as an industry, those who are engaged in the mining, cutting/polishing and trading of gemstones in Pakistan have not been able to exploit the full potential of this sector.
The first gemstone mine in Pakistan was discovered in 1951, in the Haramosh Range in Gilgit. But it took no less than 27 years for the establishment of Gemstones Corporation of Pakistan (GEMCP), under the administrative control of Ministry of Petroleum & Natural Resources, in 1978. GEMCP was responsible for exploring, mining, auctioning and exports of gemstones. Within 15 years of its establishment, GEMCP was disbanded in 1993-94 and private sector was encouraged to invest in the sector. The impact of privatization proved to be positive, as exports of gemstones have risen since then, albeit slightly. In 2003, the total value of gemstones export was worth US$4 million. Factors including lack of appropriate skills, vested interest, regulatory bottlenecks, technological limitation and so forth, have been responsible for hindering the efforts of new investors to make any significant progress in this regard.