Gems Identification/ Certification Centers. Location: Gilgit, Peshawar, Karachi, Quetta
 
Due to lack of adequate gem identification facilities, there is limited understanding of gemstones and their properties often leading to underselling of precious stones as well as lack of buyer confidence. To improve upon the quality of the industry, introduction of standards in the form certification of gems is essential. Currently, there are four gem identification labs in Pakistan: GGIP located in Peshawar, NWFP, two in Karachi and one in Islamabad. GGIP and the one in Islamabad do not issue certificates. According to industry sources these labs have limited identification capacity.

The strategy calls for setting up gem identification and certification labs to provide international scientific standards of gem testing and identification. The labs will perform the following functions:
 
Identification of new colored gemstones and provide examination reports;
Testing and certification;
Grading reports for diamonds (possibly to be implemented at a later stage as the need is created).
 
The SWOG has also highlighted the need for gems identification and certification labs in Karachi, Peshawar, Quetta, and Northern Areas.

Gem identification and certification labs will stimulate local sales and exports as well as improve profit margins as a greater number of people will have confidence in product quality. Stone studded Pakistani jewelry will get better prices internationally. The industry as a whole will benefit and move to a higher level of efficiency as parties will have access to impartial professional information about the nature and value of their sales transactions. The standards within the trade will improve as more and more gemstones are correctly identified and described. Quality assurance will reduce transaction costs along the value chain and allow manufacturers and retailers to improve their profits by using certification and grading information to develop consumers' perception about color stones as a worthwhile investment. This will upgrade Pakistan's reputation in the international market as a source of quality gems. The establishment of a laboratory will demonstrate national intent to improve quality standards. It will also provide an institutional mechanism for consumer protection as the consumer will be able to independently verify his/her purchases. The gemologists employed in the laboratory will further stimulate gemological awareness within the trade which will help in increasing the knowledge of the entire sector.