must7, they have foreign consulting firms and chambers advising them. Mr. Shaukat Aziz had mentioned about developing the gems and jewelry sector. There is alot to learn from Thailand and India. I think Thailand gems industry exports about $15 bn (more than the total exports of Pakistan).
There is going to be a jewelry fair here in Thailand in a week, and Shaukat Aziz had stressed private sector participation. A welcome step!
Pakistan can learn alot from India in this sector as well.
First step is to get investors setup stone cutting factories. There is no point exporting raw materials (most of it ends up in India sadly). Get people to teach them the art of cutting stones, and setup more factories. Once we export finished material its value already increases by atleast 10x.
There is more to corruption in gemstone industry in NWFP and Northern Areas. The place where gemstones are extracted are owned by tribals. And you know the tribals. How would they let the government or any external investor extract stones from their area. They do have a point. Solution is simple. If there are decent factories, these tribals will be compelled to sell to them. They wouldnt have to export it. Not to mention the gross under-invoicing that takes place.
There were some companies who have bought rights to extract gemstones from a particular area, but some of them are fraud. They wouldnt pay the lease for the area. I know some people personally who are doing that kind of crap. Once the bribed officials are forced to resign things would improve.
On a side note, most of the places from where stones are extracted, are inaccessible for 9 months in a year, due to lack of infrastructure. With better equipment and GIS tech, the government could help the tribals yield better stones with less wastage (they use dynamites as of now).
My company's site.
http://www.fmgems.com