The government has decided to grant the Gem and jewellery sector a status of the industry. This was disclosed by the Gems and Jewellery Strategy Working Group (SWOG) to be managed by the Small and Medium Enterprise Development Authority (Smeda) in partnership with JE Austin, USA at a recent meeting held with Shahab Khawaja, Chief Executive Officer of Smeda.
The SWOG claimed that 70 percent of the second-generation reform proposals developed by it and transmitted to the government through the Smeda had been made part of the recent trade policy.
For instance, the exporters were required to export Jewellery made from imported gold within a period of 90-day, which has now been extended up to 180 days.
Similarly, proceeds from export of Jewellery were required to be remitted within 120-day, which has now been enhanced to 240-day. In addition to these facilities, the government had allowed the import of machinery in the Gems and Jewellery sector with zero-rated duty of Customs and sales tax in the recent national budget.
Shahab Khawaja is optimistic that the Gem and Jewellery sector would be able to have an easier access to credit as well as other advantages in utility rates and taxes, after getting the status of industry.
He revealed that a scheme, in consultation with State Bank, Pakistan Bankers Association, commercial banks and Jewellery exporters was being developed, whereby exporters would import gold by utilising financing from private banks against a collateral arrangement acceptable to commercial banks and Jewellery exporters.
Members of the SWOG have expressed satisfaction over the comprehensive strategy recently developed by itself through a wider consultation with the stakeholders throughout the country. They said that the Strategy was covering the entire value chain, from "pit to pocket" or mine-to-market. It has identified a series of pilot projects and initiatives intended to close the gaps identified in the benchmarking exercise, they added.
Assadur-ur-Rehman and Shafi Chowksi, Members of the SWOG, in their presentation revealed that the main strategic pilot projects and initiatives of the Gem and Jewellery SWOG cut across the entire value chain, including hall marking/assaying for gold jeweller and gems certification.
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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