Inside Peshawar’s struggling gemstone industry

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A gemstone called tourmaline being sold for Rs150000 per carat in the Peshawar Gemstone Market. (Photo by Shahid Shalmani)
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A worker shows tanzanite stone, that is imported from Tanzania and sold for around 40 US dollars per carat. (Photo by Shahid Shalmani)
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Shahzad, a skilled worker at Peshawar Gemstone Market, shows a rough and refined forms of a stone. (Photo by Shahid Shalmani)
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This photo shows a rough and refined forms of a stone. (Photo by Shahid Shalmani)
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A student faceting a gemstone at Gems and Gemological Institute in Peshawar. (Photo by Shahid Shalmani)
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A view of the Peshawar Gemstone Market. (Photo by Shahid Shalmani)
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Shahzad working at his shop in the Peshawar Gemstone Market. (Photo by Shahid Shalmani)
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A view of the Peshawar Gemstone Market. (Photo by Shahid Shalmani)
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A worker shows tanzanite stone, that is imported from Tanzania and sold for around 40 US dollars per carat. (Photo by Shahid Shalmani)
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The rough and polished forms of Kunzite stone at Rabbani Gems and Minerals. (Photo by Shahid Shalmani)
Updated 03 December 2017
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Inside Peshawar’s struggling gemstone industry

PESHAWAR: To the uninitiated, Peshawar’s famous gemstone market isn’t easy to find amid the bustling stalls and narrow lanes of Namakmandi Bazaar.
And it’s not just for directions that the first-time visitor would be advised to bring a guide along. To get the best deals, one needs someone who knows the market well.
If gemstone traders here feel the buyer is merely browsing, they are unlikely to reveal their best-quality stones.
Rabbani, a 37-year old trader and owner of Rabbani Gems and Minerals, told Arab News that traders are loathe to share details of their gems even with fellow businessmen.
“They will only show you the gems if they are convinced that you are a ‘real buyer’ because they think the stones may lose value if shown to non-buyers,” Rabbani said.
Rabbani deals in Kunzite and Tourmaline stones from Afghanistan, cut, polished and haggled for in Peshawar. “We export the stones to Thailand where traders sell locally or to other countries,” he explained.
A Chinese trader named Ziyambo — who has visited Peshawar frequently over the past 15 years — had come to the gemstone market with a guide “searching for quartz,” he told Arab
Shahzad, a skilled cutter and polisher of gems, was bent over his machine, glasses on and a light close to his forehead. His family have been in the business for over six decades.
“My father was a gemstone expert,” he said. “Me and my brothers used to work with him when we were college students.”
Shahzad had a variety of stones in his shop, including topaz, tourmaline, aquamarine, kunzite, and tapis.
He explained that traders get raw stones from Afghanistan and different parts of Pakistan; his job is to cut and polish them and then export them to countries including the US, UK, and China.
The Pakistani government has set up a Gems and Gemological Institute in Peshawar, where students are trained in three groups, gemology, faceting and carving.
The Institute’s director, Naveed Masood, told Arab News that the institute produces a skilled workforce for the gemstone industry.
“Since the institute was established in 2001, we have trained around 4,000 people,” he said, adding that the institute would like to send its trainers abroad “for advance training.”
Sources at the institute told Arab news that despite its efforts to produce a skilled labor force, “neither the federal nor the provincial government provides (us) with any funds, as the staff meets their expenses by offering trainings courses and other activities.”
The president of the Peshawar Gemstone Market Traders Union, Abdul Jalil, said that the market has more than 700 shops. However, he complained that they do not have the necessary facilities for proper exhibition of the stones.
Jalil, who is also the vice-chairman of the All Pakistan Commercial Exporters Association, said, “The government should build a road leading to the market and also set up a facility for exhibition of our gemstones.”


Pakistan says Panda bond launch to diversify funding, avoid overreliance on dollar

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Pakistan says Panda bond launch to diversify funding, avoid overreliance on dollar

  • Pakistan has said it plans to issue its first-ever yuan-denominated Panda bond in January 2026
  • Pakistan minister identifies agriculture, minerals, AI as key areas to attract Chinese investment

ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb said on Tuesday that launching its first-ever Panda bond would allow Islamabad to diversify its external financing sources away from overreliance on the US dollar, the Finance Division said. 

Pakistan has said it aims to launch the Panda bond— a yuan-denominated bond issued in China’s domestic market— by January next year. This highlights Pakistan’s efforts to find alternatives to dollar-denominated borrowing as global financial conditions tighten and Islamabad looks to escape a prolonged macroeconomic crisis. 

Panda bonds are renminbi-denominated instruments sold to Chinese investors by foreign governments or companies, offering issuers access to China’s deep domestic capital markets while reducing exposure to foreign-exchange volatility.

“He said the [Panda bond] issuance would allow Pakistan to tap into the second-largest and second-deepest capital market in the world, helping diversify funding sources away from overreliance on the US dollar by complementing existing access to euro and sukuk markets,” the Finance Division said. 

Aurangzeb was speaking to the state-owned China Global Television Network (CGTN), the Finance Division said. 

The finance minister acknowledged Pakistan had “previously underutilized” the opportunity to take advantage of the Panda bond, expressing optimism about investor interest in the Chinese market.

He said Pakistan remains hopeful of launching the bond ahead of the Chinese New Year, calling it a “landmark development” in the country’s external financing strategy. 

In response to a question about Pakistan’s economic priorities, Aurangzeb identified agriculture, minerals and mining, artificial intelligence and digital economy as key areas where Islamabad could attract Chinese investment. 

“He emphasized that beyond capital flows, this phase of cooperation places strong emphasis on knowledge transfer and technical support,” the Finance Division said.