The Gems and Jewellery Strategy Working Group (SWOG) has chalked out a plan for the development of the sector in Pakistan. This is an USAid-funded project managed by J. E. Austins, USA in partnership with Small and Medium Enterprise Development Authority (Smeda).
Shahab Khawaja, Smeda Chief Executive Officer, stated that the government has accepted almost 70 percent of the second-generation reform proposals of the SWOG, which were transmitted through the authority.
For instance, he quoted that the exporters were required to export jewellery made from imported gold within a period of 90 days, which has now been extended up to 180 days. Similarly, proceeds from export of jewellery were required to be remitted within 120 days which has now been enhanced to 240 days. In addition to these facilities, the government had allowed the import of machinery in the gems & jewellery sector with zero-rated duty and sales tax in the 2005-06 Budget.
Shahab Khawaja disclosed that government has agreed to declare this sector an industry so that the sector can have easier access to credit and have advantage in utility rates and taxes.
The Smeda CEO said that a scheme, in consultation with State bank, Pakistan Bankers Associations, commercial banks and jewellery exporters was being developed whereby exporters will import gold by utilising financing from private banks against a collateral arrangement acceptable to commercial banks and jewellery exporters. Non-availability of running finance has been a major problem in the growth of this industry.
Members of the SWOG said that they had developed a strategy based on benchmarking Pakistan's gems and jewellery sector against that of countries having more successful and competitive gems and jewellery sector. They further said that the strategy was covering the entire value chain, from "pit to pocket" or mine-to-market. It has mentioned a series of pilot projects and initiatives intended to close the gaps identified in the benchmarking exercise, they added.
Earlier, SWOG members Assad-ur-Rehman and Shafi Chowksi in their presentation revealed that the main strategic pilot projects and initiatives of the working group cut across the entire value chain including hallmarking/assaying for gold jewellery and gems certification to increase customer confidence and quality; gems lab and exchanges with improved lapidary to upgrade the quality of stone cutting and design; common training and facility centres to upgrade technology, design and sector human resources; a marketing/branding initiative and second generation policy reform recommendations that would contribute to a more competitive sector.
In addition to all such initiatives, Pakistan School of Fashion Design, which is also a member of the SWOG and of its training core group will henceforth, be issuing the Gem & Jewellery degrees recognised by the Higher Education Commission (HEC) of Pakistan.
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