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.