Policies hurting jewellery industry’s business: LCCI

LAHORE: Pakistan’s gold and jewellery industry has been severely affected by the lack of regularization, tax hurdles, GST on raw materials, and strict monitoring, due to which Pakistan is unable to join the global competition.

LCCI President, Faheem Ur Rehman Saigol, said that the jewelry industry has immense potential, but existing policies have almost crippled the business. He said that India is exporting around 28 billion dollars’ worth of jewelry, while Pakistan has not even entered the race. He emphasized that sales tax on raw material should be removed immediately because it has destroyed the business. He added that jewelry makers and traders should be provided industrial-level facilities, a secure business environment, and ease in taxation.

He expressed these views during the visit of a delegation from Anjuman Tahaffuz-e-Zargaran to the Lahore Chamber. The delegation was led by Chairman Hammad Maqsood Gill. Senior Vice President Tanveer Ahmed Sheikh, Executive Committee Member Shouban Akhtar, TEVTA Vice Chairman, and former EC Member Naeem Hanif were also present. Other members of the delegation included Muhammad Zahid, Sikandar Butt, Ameer Ali, Mateen Javed, Muhammad Asif, Ateeq Ahmed, Sheikh Abdul Basit, Sheikh Ameen, Mukhtar Ahmed, Haji Basharat, Ahsan Gul, and others.

Chairman Hammad Maqsood Gill said that there is no clear policy for the jewelry sector. He said Pakistan has even more export potential than India, but lack of government attention is the biggest obstacle. He demanded that a friendly policy should be introduced, raids on shops must stop, traders should not be harassed, and policies should be made according to ground realities.

The delegation shared that there is a large market for stones, artificial jewelry, precious jewelry, and gold work in the country, with nearly two thousand shops and more than ten thousand workers. Although the government has given the sector the status of an industry, electricity is still provided at commercial rates. Unnecessary questioning by customs officers during intercity transport of raw materials further complicates business. They said that when movement of raw material within the country is itself difficult, how export can grow.

The President of the Lahore Chamber assured that all issues of the jewelry sector will be strongly raised with the concerned authorities and the Chamber will fully support policy reforms for the industry.