By Riaz Ahmad Malik
Pakistan is blessed with an abundance of mineral resources that hold immense potential for
economic growth and industrial development. The country’s vast reserves of minerals, including
coal, copper, gold, iron ore, chromite, and precious stones, provide a solid foundation for the
mining sector to thrive and contribute in the country’s economic development.
Despite its huge potential, the mineral sector currently contributes around 3.2% to the country’s
GDP, with exports accounting for only 0.1% of the world’s total. However, with increasing
exploration, foreign investment, and infrastructural improvements, Pakistan’s mining industry is
poised for significant expansion.
Pakistan’s mineral-rich landscape covers an outcrop area of approximately 600,000 square
kilometers. With 92 known minerals, 52 of which are commercially exploited, Pakistan produces
an estimated 68.52 million metric tons of minerals annually. The sector supports over 5,000
operational mines and 50,000 small and medium enterprises (SMEs), providing direct employment
to 300,000 workers.
Some of the country’s most notable mineral reserves include the world’s second-largest salt mines,
the fifth-largest copper and gold deposits, and significant coal reserves. Furthermore, the country
holds vast quantities of bauxite, gypsum, and precious stones such as ruby, topaz, and emerald,
which offer considerable export potential.
Globally, mineral resources play a crucial role in economic development. Many developed
countries, including China, Italy, Turkey, Spain, and Brazil, have effectively leveraged their
mineral wealth to fuel industrial growth, increase employment, and enhance per capita income.
Pakistan’s mineral sector holds similar promise. With strategic planning and investment, the
country can improve trade, generate employment, and facilitate infrastructure development,
ultimately accelerating economic progress.
Enhanced mineral exploration and value addition can significantly increase revenue. Many
countries import raw minerals, refine them, and export value-added products. Pakistan has the
potential to follow suit by establishing mineral processing and refining industries, leading to
higher-value exports and reduced dependency on raw material exports.
Pakistan’s mining sector is increasingly attracting foreign investment, with global firms eyeing the
country’s untapped mineral reserves. The Reko Diq copper and gold project, located in
Balochistan’s Chagai district, is the world’s largest untapped copper reserve and stands as a
milestone for Pakistan’s mining ambitions.
The project, revived by Canada’s Barrick Gold, is expected to start producing copper and gold by
2028, with an initial investment of $5.5 billion. According to Mark Bristow, CEO of Barrick Gold,
which owns a 50% stake in the project, the reserve is expected to generate approximately $74
billion in free cash flow over the next 37 years, based on consensus long-term prices.
The mine is anticipated to generate $2.8 billion in annual exports, creating thousands of jobs and
transforming the local economy. A planned expansion will further increase copper production to
400,000 tonnes and gold output to 500,000 ounces per year, with an additional investment of $3.5
billion.
Under an intergovernmental transaction agreement, the federal cabinet has approved the sale of a
15% stake in the Reko Diq project to Saudi Arabia. This underscores the region’s potential as a
hub for foreign investments in the country’s mining sector. Saudi Arabian mining company,
Manara Minerals will acquire a 15% stake in the mining project, potentially involving an
investment of $1 billion.
Pakistan’s commitment to infrastructure development is crucial to unlocking the full potential of
the mining industry. The China-Pakistan Economic Corridor (CPEC) is playing a pivotal role in
transforming the transportation and export logistics of mineral resources. Gwadar Port and Port
Qasim are set to enhance mineral exports, while improved road and rail networks will facilitate
better connectivity between mining regions and industrial hubs.
Logistics for the Reko Diq mine would be managed through a railway track that is being
established in partnership with Pakistan Railway. The railway tracks would essentially entail
moving mining supplies to the mine from Karachi and eventually exporting copper concentrate
and gold from the mine to Karachi for export.
Beyond Reko Diq, Balochistan harbors over 40 minerals, including oil, gas, uranium, and coal,
with the potential to fuel Pakistan’s energy and industrial needs for a century. Efforts are also
underway to establish refineries, which will allow Pakistan to move up the value chain and reduce
reliance on raw material exports.
Recognizing the potential of the mining sector, the government is finalizing the National Minerals
Harmonization Framework 2025, a comprehensive policy aimed at attracting investment and
formalizing regulations at both the provincial and national levels. The framework will provide
incentives to local and foreign investors, streamline mining regulations, and facilitate public
private partnerships.
A significant milestone in this regard is the Pakistan Minerals Investment Forum (PMIF) 2025,
scheduled to take place on April 8-9 in Islamabad. This event will bring together global ministers,
leading corporations, investors, policymakers, and industry experts to discuss investment
opportunities, technological advancements, and policy frameworks in the mining sector.
Pakistan’s minerals landscape is a sleeping giant with immense economic potential. Through
strategic investments, infrastructural improvements, and value addition, the mining sector can
become a key driver of national economic growth.
