Caretaker Federal Minister for Industries, Production and Special Initiatives Salman Taseer has said that significant steps will be taken for eliminating the undocumented trade of Gems and Jewellery zero-rated that is causing million of dollars losses to national exchequer annually.
He expressed his views during a meeting with the officials of Pakistan Gems and Jewellery Development Company (PGJDC) held at a local hotel on Tuesday. On the occasion, several officials of the PGJDC were present, who also briefed the minister about the development and activities besides problems of the company and local traders.
Salman assured the officials that his ministry would raise this issue with the Federal Board of Revenue (FBR) to lift taxes from the import and export of gems and jewellery to make this sector more lucrative and competitive.
He stressed the need to expand the sector at the local level to enhance employment opportunities and revenue, as Indian gems and jewellery sector, he observed, was flourishing robustly and also generating employment opportunities for their own people.
To control undocumented trade of gems and jewellery he ensured that all traders would be facilitated at all stages to bring into documentation to stop this misconduct. Briefing the minister Chief Executive Officer of PGJDC Fawad H Khan said that global trade of gems and jewellery stood at $87 billion, whereas the country's export share in the world markets during 2006-2007 was approximately $40 million.
Sales and import taxes on gems and jewellery were making expensive these products in the local and international markets, which had hampered the growth of this sector and made it uncompetitive globally.
The annual global gold consumption is 3,300 tons of which the country's gems sector's purchasing is 170 tons, he said, adding that estimated employment in this sector, both direct and indirect, was about one million. He added efforts were being made to augment gems and jewellery sector under the national strategy that was being formulated.
He said, though, as per proposed national strategy the gems and jewellery sector's productivity would be raised through skill development, technology up-gradation, research development and innovation, policies would also be initiated for the export growth though marketing.
He said the company was formed in June 2006 and Rs 250 million had been allocated for the year 2007-08, adding that the company had arranged several capacity building and training programmes for the upgradation skill.
He pointed out that the major competitors in the world market were China, India and Thailand, however, country's products were perfect in finishing than any of their products.