Sirkap, also known as the second city of Taxila, 300 kms from Lahore, is a UNESCO-protected heritage site since 1980.
"A large number of the stolen antiquities - a necklace with multi-coloured gems, bangles and other jewellery worth millions of rupees have been stolen from Sirkap last week. The antiquities could be centuries old," Punjab Archaeology Department Director General Chaudhry Mohammad Ijaz said.
He said the department had awarded a contract for the restoration of an ancient archaeological site in Sirkap to a local contractor.
He said the labourers sought deals for the stolen ornaments with local antique dealers.
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"After reports of the deals surfaced the department got a case registered against the labourers with police," he said, adding some labourers have been arrested but no ornaments were recovered so far.
"We have formed a high-level committee to probe the matter and fix the responsibility of the theft," he said.