Jewelry Industry

Gems & jewelry industry 

Presented By Ayesha Afzal Anum Tanveer

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Instructor Sir Afaq Ali Khan

Outline         

History. Introduction. GDP Contribution. Raw material. Pakistan’s scenario. Government. World scenario. Problems. Conclusion.

History 

The art & craft of fine quality jewellery manufacturing are deeply rooted in the traditional heritage and history of Pakistan.

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It was however in the Mughal period that the artisan class of goldsmiths arose to attain a distinct status in the subcontinent.

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The most famous among the various jewellery types that emerged during the times of the Mughals include, Minakari, Kundan, Polki, and Nauratan, etc.

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Presently, metropolitan cities of Lahore and Karachi are the major hubs of jewellery manufacturing.

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There are more than thirty major cities and nearly three hundred smaller cities/mandi towns where jewellery manufacturing and trading clusters cater to domestic demand. In addition, there are at least 45,000 villages where jewellers operate as single-shop, manufacturing and selling units to meet the demand of rural population

Introduction 

Pakistan’s gems and jewelry sector is often described as a cottage industry

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Gems and jewelry have always held a magical appeal. They have been the sign of power, prestige and wealth.

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Women of this sub-continent have always been the biggest buyers

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the export of gems and jewelry has also gone up substantially.

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Entry of Pakistani exporters in some of the developed markets has also encouraged the local jewelers to introduce their branded jewelry.

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Pakistan's main export markets are USA, the Gulf region and the UK.

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Pakistan mostly exports ethnic designs and hand-made jewelry. Lately export of machine made jewelry has also increased.

Introduction Pakistan’s gems and jewelry sector is often described as a cottage industry, a small and medium enterprise, with four- to five-person workshops crafting pieces by hand or with outdated machinery. Most manufacturers cannot cater to international markets, which prefer 14 to 18 karat gold, not the 22 or 24 karats popular domestically. Three-quarters of the $28 million in industry exports in 2004 were rough stones: despite the country’s abundant mineral reserves, processors lack the expertise to cut stones to global standards. Manufacturers usually attended global trade fairs as individuals, failing to garner much buyer attention. Unleashing the industry’s tremendous potential would increase export revenues, entrepreneurship and employment, and reduce the level of poverty.

GDP Contribution Jewelry industry contributes 4% of our GDP

Raw material being imported a)

Gold

b)

Jewellery casting powder

c)

Molding rubbers

d)

Injection wax

e)

Rhodium plating solution concentrates

f)

Bright & Chrome

g)

Laquering solutions

World scenario 

Global trade for gems and jewelry has shown a positive trend showing increasing demand for these valuable fashion articles in international market. for jewelry the total trade expended form US$ 15.9 billion to US$ 43.5 billion in 2002

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Pakistan’s pink topaz and Kashmir ruby are unique items all over the world

Top ten world jeweler importing countries (source: international trade center)in us Country

2000

USA

million

2001

2002

6553

6359

7221

United kingdom

1627

1988

2321

Switzerland

1183

1174

1393

Hong Kong Japan Germany France UAE Singapore

1262

1236

1435

1177

1373

1328

861

792

844

848

948

950

1195

1441

-

582

552

539

Pakistan’s scenario 

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• • • • • • • • •

Pakistan has emerged as the 5th largest country for the occurrence of gemstones on the world map, but it has been unable to penetrate the international market, as its average market share is only .31% of total world wide exports. Major buyers of Pakistani gemstones are: USA 33% Hong Kong 25% Germany 20% Uk 5% France 4% UAE 4% India 3% Thailand 2% Others 4%

Pakistan’s scenario 

The global trade of gemstones is around $40.7 billion per anum, Pakistan's export market share declined from $7.7 million in 198990 to $5.8 million in 1997-98.the export further declined to $3.7 million in 2003-04.

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The export of gemstone from Pakistan is insignificant as compared to large potential that exists in the country therefore there is a need to increase not only the quality of gemstones exported but also the quality .this cam be achieved buy setting a cutting n polishing industry in Pakistan, by adding value to rough stones

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Pakistan has low cost labor as compared to other countries

Government to encourage jewelry sector 

The govt is encouraging the gems and jewelry industry, as it had a huge potential of providing employment and increasing growth. the USAID and Smeda are working together to help this industry to find its true potential. Pakistan is fortune enough to be strategically located close to some of major markets such as Thailand & Srilanka.besides it has one of the largest deposits of gemstones variety including high priced stone like Emerald and ruby.

Pakistan’s export of gems & jewelry Year

Precious stones

Jewellery million)

1989-90

2.2550

15.059

2000-01

2.170

23.930

2001-02

1.501

26.980

2002-03

2.170

22.601

2003-04

3.690

24.489

2004-05(julmar)

n/a

17.682

(in $

Problem Faced By The Industry • Lack of infrastructure support • Lack of political support: (no recognition at policy level) • Resource mobilization was the major issue to get short-term wins • Lack of ownership & commitment of Development agencies involved 

Lack of technology

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Unavailability of raw material

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Branding of products locally and internationally

conclusion 

Gems and jewellry is an emerging sector of Pakistan with immense export potential. The current level of trade, including the vast informal sector that is exceptive to be more than $50 million annually in future if appropriate measures are taken.