Ayesha Saba

The federal government has announced plans to promote mechanized and model gemstone mining operations under the National Policy to Realize Pakistan’s Gemstone Potential 2026–30, with the objective of reducing high wastage, improving safety standards and modernizing mining practices across key gemstone-producing regions.

According to the policy document prepared by the Ministry of Industries and Production, gemstone mining in Pakistan is predominantly carried out through small-scale, artisanal and foxhole mining methods, characterized by rudimentary tools, irregular tunnels and heavy reliance on manual labor. These practices are common in mountainous regions of Khyber Pakhtunkhwa, Gilgit-Baltistan, Azad Jammu and Kashmir and parts of Balochistan.

The policy notes that such mining methods result in substantial resource wastage, estimated at 40 to 50% at the extraction stage, largely due to indiscriminate blasting, lack of geological planning and absence of modern mining techniques. In addition to economic losses, these practices pose serious safety risks to miners and contribute to environmental degradation.

Under the new policy framework, the government will develop at least 25 model mechanized gemstone mines over the policy period. These mines are intended to demonstrate modern, safe and sustainable mining practices, including improved tunneling techniques, controlled blasting, better ventilation and systematic extraction methods. The policy describes these demonstration mines as learning platforms to encourage the adoption of improved practices across the sector.

The document highlights that mining regulation in Pakistan is constitutionally a provincial subject, which has resulted in variations in lease systems, oversight mechanisms and compliance standards across regions. While provinces such as Khyber Pakhtunkhwa and Azad Jammu and Kashmir maintain documented mine leases, many gemstone mines in Gilgit-Baltistan operate under community or artisanal arrangements, often without formal legal recognition.

The policy states that the absence of harmonized mining policies and consolidated national mine registries has weakened traceability and discouraged investment. To address this, the federal government will play a coordinating role to align mining laws and standards with national objectives related to formalization, safety and value retention, while respecting provincial jurisdiction.

A key aspect of the mining reform agenda is the controlled supply and safe use of explosives. The document notes that while unrestricted use of explosives contributes to excessive breakage and wastage, complete denial of explosives disrupts mining operations. The policy proposes the development of a framework to ensure controlled and transparent access to explosives, balancing security considerations with operational needs.

According to the policy, training programs will be introduced to improve miners’ skills in the safe and precise use of explosives, as well as in alternative extraction techniques that reduce reliance on blasting. These initiatives are expected to reduce wastage, improve recovery rates, and enhance overall efficiency in gemstone extraction.

The policy also emphasizes the need for improved geological mapping and resource assessment to support mechanized mining. Inadequate reserve estimation has been identified as a major barrier to investment, as investors lack reliable data on resource quantity and quality. Enhanced geological surveys are proposed to support informed mine planning and sustainable extraction.

The document states that mechanized mining reforms will be complemented by efforts to improve environmental and social compliance, including better mine rehabilitation practices and attention to community impacts. These measures are intended to align Pakistan’s gemstone mining sector with international standards for ethical and sustainable sourcing.

According to the policy, the promotion of mechanized mining is a critical step toward reducing value leakage, preserving national gemstone resources and improving export potential. Progress on mining reforms will be reviewed under the policy’s implementation framework, with coordination between federal and provincial authorities and engagement with industry stakeholders.

Credit: INP-WealthPk