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The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

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The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

Pakistan’s largest and most important gemstone and mineral market is deeply intertwined with the region’s borders, conflict, and undocumented economies.

The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

Namak Mandi is one of the most famous markets in Peshawar – the provincial capital of Khyber Pakhtunkhwa. The gemstone market was one long street bustling and filled entirely with men, where the sound of deals and discussions over gemstones captured my attention before the shops decorated with stones did. Despite gemstones being stereotypically associated with women, the market revealed a stark absence of women as buyers or sellers, with their presence limited to beggars on the fringes – another layer of the market’s unseen realities.

Credit: Rehman Dawar
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

The main road of the gemstone market had shops mostly displaying semi-precious stones, prominently featuring Afghanistan’s iconic blue lapis lazuli, especially from Badakhshan. The main street led to an alleyway which opened up a world beyond – traders of precious gemstones sat tucked away in a market that seemed to expand endlessly. Inside the alleyway, hidden plazas housed tightly packed shops stacked atop one another, revealing a scale and complexity invisible from the outside. It was a testament to the market’s deceptive facade.

Credit: Faryal Khan
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

Most of the shops displayed a mix of gemstones, except for some dedicated to lapis lazuli. Discussions with shop owners revealed that dealers are renowned for sourcing precious stones from specific regions – for instance, emeralds from Afghanistan’s Panjshir Valley or sapphires from Sri Lanka. This knowledge, however, is not openly shared. Some dealers proudly talked about pricey deals they had struck in Kabul and how they had been smuggling gemstones across the border for decades using the systematic corruption on both sides to their advantage.

Credit: Faryal Khan
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

In Namak Mandi, artisans meticulously cut and polish a variety of imported decorative stones, including marble, onyx, and granite, into uniform shapes, showcasing their craftsmanship. These cut stones adorn every shop, creating a cohesive aesthetic that shows the diverse origins and types of the stones. The cutting and polishing of stones is largely handled directly by the dealers, many of whom have honed their skills over decades in the trade. This practice highlights the market’s role in adding value through local labor and craftmanship.

Credit: Faryal Khan
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

Despite the artisans’ expertise, the tools used to cut and polish gems in Namak Mandi are rustic and outdated, appearing ill-suited for the delicate task. This contrast reflected both the resilience of tradition and the challenges of modernization. The dealers realize that Pakistan lags behind in the processes of value addition. They see the use of outdated mining and lapidary technology, lack of skill development, and a dearth of modern branding and marketing as major hurdles to Pakistan becoming a major player in the global gemstone trade.

Credit: Rehman Dawar
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

There are some lapidaries – shops entirely dedicated to cutting and polishing of stones – which are situated beyond the gemstone shops of Namak Mandi. These lapidaries were dedicated to semiprecious stones, decorative pieces, and crystals. Situated deliberately on the main market’s outskirts, these rough-looking workshops were filled with unspecialized, rustic tools, reflecting a stark contrast to the precision required for working with precious stones. The work seemed coarse yet vital, sustaining the market’s broader trade ecosystem.

Credit: Faryal Khan
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

The apparent lack of activity in Namak Mandi belies its worth, with trade reported in the billions of dollars. Some shopkeepers sat idly in their cramped spaces, waiting for the occasional buyer. The key is e-commerce: Currently, even the smallest shops maintain an online presence, where the majority of their sales are made. Some of the young entrepreneurs shared that they earned around $2,000 to $5,000 per month. This quiet duality highlights the market’s modern evolution, blending a global digital reach with its unassuming local setting.

Credit: Rehman Dawar
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

Some shops existed solely as online warehouses, storing cut and polished stones for other shopkeepers and digital clients. Such warehouses were literally hidden away within basements, where buyers would not venture until accompanied by the sellers or shop owners. The tightly knit community of traders in the gemstone market, constantly buzzing between shops, felt more like an extended family navigating a shared space. This interconnected network underpins the market’s success, blending old-world camaraderie with modern, global commerce.

Credit: Faryal Khan
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

Many of the shopkeepers and dealers have closed their own shops and instead cut and polish gemstones for foreign dealers. Inside closed shops, artisans quietly worked to design and refine gemstones, transforming raw materials into intricate pieces destined for international markets in the U.K., U.S., Germany, Canada, and Australia. While foreign countries have more sophisticated cutting and polishing techniques, laborers there charge per hour. Pakistani artisans charge per order and work relatively quickly compared to other markets.

Credit: Rehman Dawar
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

Another distinct duality between the glimmering trade of gemstones and the rough reality of Namak Mandi was in witnessing the behind-the-scenes process of how online businesses created the allure of gemstones through their photographic skills. I saw young men stand in the sunlight outside Namak Mandi, carefully photographing precious and semi-precious stones for online sales.

Credit: Faryal Khan
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

At Namak Mandi, the polished gems in the photographers’ hands shimmered against a backdrop of discarded tires, an open, polluted canal, and scattered garbage. The stark contrast between the glamor of the stones and the grim surroundings encapsulates the unseen dualities of the market, where digital ambitions intersect with neglected realities.

Credit: Faryal Khan
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

On the main street of the gemstone market in Namak Mandi, a new phenomenon unfolded: street traders. Some sellers have started to set up makeshift shops on the ground. These traders often deal in rough-cut gemstones, freshly acquired from auctions at mines. Bringing these unpolished treasures to the market, they embody the raw and direct connection between the mining sites and the bustling trade hub of Peshawar.

Credit: Rehman Dawar
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

As the gemstone market started operating fully after midday, the bustling alleys of Namak Mandi became flooded. Some sellers carried wooden crates, transforming their motorbikes into mobile shops. Amid this ingenuity, young children were seen handling the stones with surprising expertise, confidently identifying their origin and quality. Their skill reflected a legacy passed down through generations, blending tradition with the market’s ever-evolving trade dynamics.

Credit: Faryal Khan
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

Some of the legacy traders in Namak Mandi lamented the rise of street sellers, accusing them of undermining the market’s prestige. By placing stones on the ground and conducting open auctions, these newcomers challenged the “unwritten rules” of the trade. While offering easier access to buyers, their practices were seen as a departure from the respect and tradition that have long defined the gemstone market. Here again, Namak Mandi encapsulated the tension between tradition and change.

Credit: Rehman Dawar
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

When I inquired about discarded stones that were low in quality or the waste that was produced in lapidaries, the dealers took me to dimly lit basements, which were filled with piles of waste from gemstone cutting and polishing. The dust and fragments accumulated in neglected heaps, with shopkeepers casually citing their use in construction. The casual nature of the disposal laid bare the absence of regulation or safety measures, painting a picture of environmental neglect – the hidden cost of the glittering trade above.

Credit: Faryal Khan
The Untold Stories of Peshawar’s Gemstone Market at Namak Mandi

The main reason I ventured into the gemstone market in Namak Mandi was to inquire about jade and nephrite that was resourced from Mohmand. The photo above shows a display of serpentine, nephrite, and jade – all indistinguishable to the untrained eye. This underscored one of the most hidden truths of Namak Mandi: the specialized knowledge of gemstones remains closely guarded. Dealers and sellers, the gatekeepers of this expertise, are reluctant to share, adding another layer of secrecy to the market’s operations.

Credit: Faryal Khan

At first glance, the gemstone market in Peshawar, locally known as Namak Mandi –meaning “Salt Market” in Urdu – appears unremarkable and unappealing. The narrow lanes, crumbling shopfronts, and the stench of open sewage create an image of neglect and decay, concealing the vibrant trade that thrives within. However, this small, unassuming market has evolved into a pivotal hub for the gemstone trade. It is Pakistan’s largest and most important cut and rough gemstone and mineral specimen market, deeply intertwined with the region’s borders, conflict, and undocumented economies.

Namak Mandi transitioned into a center for gemstones in the 1970s with the arrival of Afghan migrants who were fleeing the Soviet invasion of Afghanistan. Even today, Afghans hold a near monopoly over the gemstone trade, with local traders sharing that around 80 percent of the shops in the gemstone market belong to Afghans. Namak Mandi remains pivotal in linking local traders with global buyers across continents and facilitates deals worth thousands of dollars on a daily basis.

However, this glittering trade hides a shadow economy. The gemstone market in Namak Mandi has been linked with smuggling, illicit cross-border networks, money laundering, and financing militancy in the border region of Pakistan and Afghanistan. Despite the issue of militancy and strict border regulations along the  Pakistan-Afghanistan border, a significant portion of the stones in Namak Mandi originate from Afghanistan and entered Pakistan through informal channels. From Peshawar, the stones will be illegally exported to international markets. 

In Pakistan, the situation around the gemstone trade remains concerning. Despite being among the world’s top gemstone producers, the country officially exports a mere $8 million worth of precious stones annually. In contrast, it is estimated that gemstones valued at approximately $5 billion are smuggled out of Pakistan each year These undocumented transactions highlight the challenges of regulating trade in a region marked by porous borders and longstanding conflict. 

Pakistan has the potential to export 800,000 carats of rubies, 87,000 carats of emeralds, and 5 million carats of peridots per year. Some of the most remarkable gemstones include emeralds from Swat, pink topaz from Mardan, nephrite from Mohmand, peridots from Kohistan, and rubies from Pakistani Jammu and Kashmir, due to their clarity, durability, and glittering design. Many countries, including China, Afghanistan, the United States, Belgium, the United Kingdom, the UAE, Thailand, and India, import raw gemstones from Pakistan and export finished gem products and jewelry worldwide. 

In this photo essay, based on observations over two days, I delve into the hidden duality of Namak Mandi, a market that outwardly seems insignificant yet operates as a linchpin in the global gemstone supply chain. (On the first day, I was accompanied by a friend from Waziristan, Rehman Dawar, who also assisted in capturing some photographs.) Through visuals capturing its deceptive facade, the intricate craftsmanship of its artisans, and the stories of its traders, this essay explores the market’s role in sustaining livelihoods while navigating the murky waters of undocumented trade and cross-border complexities. 

Namak Mandi is not just a marketplace; it is a microcosm of the region’s history, resilience, and the intricate dance between legality and informality in borderland economies.

The gemstone market is known (as a place of trade), but its true scale, wealth, and global connections remain unknown to casual observers. Recently, some efforts have been initiated to formalize this “known unknown,” such as setting up the Gem Export Center, complete with a certification lab, international mail office, bank, and customs office. By addressing smuggling, providing infrastructure, and enhancing transparency, these initiatives could bridge the gap between the market’s hidden wealth and its broader economic potential. Formalization would not only spotlight the market’s contributions but also empower artisans and traders, ensuring that this concealed gem of Pakistan shines on the global stage. 

Acknowledgement: Thanks to Rehman Dawar for his help in capturing some wonderful photos in Namak Mandi, Peshawar. All photos were taken with the consent of those involved.

Disclaimer: This publication is a product of the FCDO’s Cross-Border Conflict: Evidence, Policy and Trends (XCEPT) program, funded by aid from the U.K. government. XCEPT brings together leading experts to examine conflict-affected borderlands, how conflicts connect across borders, and the factors that shape violent and peaceful behavior. This research is a part of XCEPT’s Local Research Network, which engages experts on the ground to build data, evidence and analysis that reflects the local experiences of fragility and conflict. For more information on XCEPT and the Local Research Network visit www.xcept-research.org. The views expressed in the document do not necessarily reflect those of XCEPT or the U.K. government.

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