The country’s first jewellery park, which was facing delay for the last four years, has received a green signal as Trade Development Authority of Pakistan (TDAP) and Civil Aviation Authority (CAA) have reached an accord to establish the “Dazzle Park” after resolving the land issue.
In a recently held meeting between the heads of both authorities, the land rent dispute of the planned park was almost resolved thus giving approval to the much waited project, Pakistan Today learnt. Earlier, the legal departments of the two authorities had held series of meetings to resolve the issue that took four years to get resolved. The country’s first proposed dazzle park of gems and jewellery, a project of TDAP was facing a complete halt due to the land rent issue since the project was approved by the ministry of commerce in 2007. Despite paying the occupancy value of the land to the Civil Aviation Authority (CAA) work on the important project could not be started as the rent condition set by the authority in the draft agreement was not acceptable to TDAP, sources said.
TDAP, which paid over Rs206 million to CAA in June 2007 as the occupancy value of the 16 acre land could not take over the property as the owner, was reluctant to accept the terms of the former, according to which TDAP had to pay over Rs20.6 million, per month. This amount would be increased by 100 per cent after every decade, sources added. No development work, the sources said, has so far been undertaken, on the proposed land which was given to it on lease for 60 years, because of the unfavourable terms and conditions of rent. Being a government institution, TDAP was demanding the CAA for relaxation regarding the rent issue and not to treat the former as a franchise and private company, they added. However, sources in TDAP claimed that negotiations were going on with CAA to amend the rental conditions. Foreign investors and other stakeholders had shown their interest to invest in the project and the concerned authorities would try to approach these parties for an early start of work on the project.
For export promotion of gems and jewellery, government had initiated setting up of a gems and jewellery Park in Karachi on 16 acres land earmarked by the CAA at Karachi Airport for the proposed Dazzle Park. The technical expertise, joint venture partnerships, inward investment and academic collaboration from relevant industry sectors in the UK, were also invited by the authority for development of the Park. Pakistan exported jewellery worth $638.026 million during financial year 2009-2010 as compared to the export of $285.684 million during fiscal year 2009, with an increase of 123.33 per cent. After completion of the jewellery project gemstone export is also expected to reach $30 million from existing $7.5 million per annum.
As a special economic zone, the park was aimed to produce skilled manpower along with infrastructure facilities and services for the gems and jewelry sector. Besides, after the completion of the project, the export of jewelry was targeted to achieve $1 billion per annum from the existing level of around $638.026 million. TDAP has initially selected core mineral products i.e. gems, jewelry, marble and granite as emerging mineral products for export. Pakistan has exported marble and granite worth $34 million in fiscal year 2008-2009 compared to last three years exports of $22 million, with a significant increase of $12 million. According to the project, the park will comprise in house facilities for certification of coloured 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. The project has also been approved by Export Development Fund Board in its 54th meeting held on March 20, 2009.