KARACHI – Pakistan’s first proposed ‘Dazzle Park’ for Gems and Jewellery, which was to be constructed in Karachi to improve exports of precious stones of the country, remains in limbo due to a land rent dispute. The important project, which is aimed at boosting the export of jewelry to the level of $1.0 billion per annum from its existing level of around $290 million, was placed in cold storage for the last two years after a dispute was erupted between Civil Aviation Authority (CAA) and Trade Development Authority of Pakistan (TDAP) over the issue of land rent, sources said.
Despite paying occupancy value of the land to the Civil Aviation Authority (CAA), work on the important project was not begun due to, what sources asserted were ‘unacceptable’ rent conditions set by CAA in the draft agreement. It is worth mentioning here that the proposed Dazzle Park, which was approved by Export Development Fund Board in its 54th meeting held on March 20, 2009, was planed to be constructed on a land of CAA in Karachi.
Though TDAP, sources said, had requested the CAA several times to resolve the issue earlier to ensure the timely establishment of the park during the last two years, the latter was reluctant to comply. Resultantly, no development, sources said, has so far been completed by the TDAP, on the proposed land which was given to it on lease for 60 years, because of the unsuitable terms and conditions of rent.
According to sources, TDAP, which has already paid over Rs .206 billion in June 2007 as occupancy value of the 16 acre land to CAA, the owner of the land, was reluctant to accept the terms of the former, whereby TDAP has to pay over Rs 20.6 million per month which would be doubled after every decade. Though foreign investors and other stakeholders have already evinced interest in the project, bilateral disputes between the authorities have continued to plague the project.
Both authorities are government institutions with TDAP demanding the CAA offer better terms on the rent issue and not to treat it as a franchise or private company.
It is also noteworthy that the technical expertise, joint venture partnerships, foreign investment and academic collaboration from relevant industry sectors in the UK were also invited by the authority to aid in the development of the park.
As a one window special economic zone, the park is aimed to creating skilled manpower along with the infrastructure facilities and services for the gems and jewellery sector. Besides increasing the export of gems and jewellery, gemstone export was expected to rise to the level of $30 million per annum from its current level of $7.5 million.
The TDAP has initially selected core mineral products such as gems, jewelry, marble and granite as emerging mineral products tapped for export. Pakistan has exported marble and granite of $34 million in 2008-2009 compared to the average export in the last three years of $22 million, a significant increase of $12 million.
According to the project, the park will comprise of in house facilities for certification of colored stones and diamonds by a top of the line international gemstone certification authority. It will also provide hallmarking of jewelry and assaying of precious metals by an internationally accepted hallmarking and assaying authority.
Despite the lack of facility like training centers, Pakistan Gems and Jewellery Development Company (PGJDC) has recently claimed that demand for Pakistani gemstones, mineral specimen and traditional Pakistani stone studded jewellery continued to grow in the world market and it hoped that gem and jewellery export will expand to $1.5 billion by 2017.
