EXECUTIVE SUMMARY
While, Lahore & Karachi with its large Gold and Gem studded jewellery making industry are suitable locations, Gems Stone Lapidary is proposed to be located at Peshawar since major trade/export is taking place in this city. Within Peshawar, Namak Mandi area is preferable, as large Gems Clusters exist here. These jewellery markets are the main customers of cut and polished gemstones. The proposed unit will process rough gemstones, initially semi precious gemstones like Aquamarine, Peridot, Tourmaline etc. These gemstones mainly come from mines in Chitral, Mardan and Gilgit Baltistan in addition to gems from Afghanistan and other nearby locations.  Proposed unit will have the capacity to process 3,000 units (Cut & Polished Gemstones, (average 3 carat weight per stone). In the first year of operation, the unit would run on 60% of the total production capacity, which is processing 1,800 pieces.  The total cost of the project is Rs. 2.08 million.
The most critical considerations or factors for success of the project are:
1. Awareness about current market trends i.e. the type of stone & type of cut required by customers, which in this case are jewellers.
2. Availability of skilled labour. 
BRIEF DESCRIPTION OF PROJECT & PRODUCT
• Technology:  This proposed unit with modern processing machines includes faceting, cutting and polishing to produce cut and polished precious and semi- precious gem stones of both calibrated and non-calibrated types.
• Location: The unit will be located in or near gems trading clusters such as Namak Mandi in Peshawar, or Lahore and Karachi also, where access to raw gemstones is easy.
• Product: The unit would initially process semi-precious gem stones like Aquamarine, Tourmaline, Peridot etc. which comes from Chitral and Northern areas.
• Target Market: An enormous export market for Pakistani gemstones exists in Europe, USA, Middle East, Hong Kong, Taiwan, etc. The Government of Pakistan, recognizing the potential for local value addition has waived off import duty on lapidary equipment.
• Employment: The proposed project will provide direct employment to 9 people. 
• Profitability: Financial analysis shows the unit shall be profitable from the very first year of operation. 
CRITICAL FACTORS
The commercial viability of the Gems Stone Lapidary depends, primarily, on regular orders from customers. Following are some other points that have to be ensured to make the business successful:
1. Awareness about current market trends i.e. the type of stone & type of cuts required by customers; which in this case are jewellers.
2. Availability of skilled labour.
3. Timely delivery of orders 
4. Availability of raw material (rough, uncut and unpolished gemstones). 
INSTALLED & OPERATIONAL CAPACITY
The installed capacity shall be 3,000 pieces per year. The project will run with approximately 60% capacity in first year of its operations with annual increase of 3% in production, constraint being skill levels.  
GEOGRAPHICAL POTENTIAL FOR INVESTMENT/SUITABLE LOCATIONS
The most appropriate location for setting up a Gems Stone Lapidary would be Peshawar, since major trade/export takes place in this city. Within Peshawar, Namak Mandi area is preferable as large Gem Clusters exist here. Similarly, Lahore & Karachi, with their large Gold and Gem studded jewellery making industry, are other suitable locations. Chitral and Mingora as well as Gilgit and Skardu are also suitable locations for establishment of Gems Stone Lapidary due to proximity to raw material sources.  
POTENTIAL TARGET MARKETS/CITIES
Initially the products, mainly semi-precious natural gemstones will be processed by focusing on demand of the jewellery manufactures of Karachi, Lahore and Peshawar. After having reasonable domestic customers base, export market can be targeted, provided export standards are met. The main export markets for Pakistani Gemstone are U.A.E, United Kingdom, Thailand, Canada, Italy, China, Netherlands, Saudi Arabia, USA, Hong Kong and Germany.