ISLAMABAD: Pakistan is moving to ease operational and regulatory hurdles for its flagship mining projects in Reko Diq and Saindak, signaling a renewed push to tap into its vast $7 trillion mineral potential.
According to the Petroleum Minister Ali Pervaiz Malik, one of the biggest hurdles for investors is the fragmented regulatory environment, as mineral resources are constitutionally a provincial subject.
Investors face multiple sets of legislation, rules, and licensing requirements across provinces.
To address these challenges, the government has been working to harmonize regulatory frameworks, standardize environmental, social, and governance (ESG) and safety standards, and encourage provinces to adopt a unified approach while retaining ownership.
The concerned authorities are stressing the importance of developing a consistent fiscal regime that accounts for sector-specific risks, creating an environment conducive to capital inflow. “Once operational, Reko Diq will set a benchmark for other mining projects in Pakistan,” the minister believes.
It has been officially emphasized that Pakistan’s estimated $7 trillion mineral potential is based on geological surveys and remains largely untapped.
According to Dr Hamid Ashraf, adviser to the Geological Survey of Pakistan, there is a need for a competitive fiscal regime aligned with top mining jurisdictions such as British Columbia, Western Australia, Indonesia, Chile, and South Africa.
It has been pointed out that Pakistan previously operated under six different mining policies, eight Acts, and 36 sets of regulations, making it extremely difficult for investors to navigate the system.
According to Zarrar Jamali, country manager for Reko Diq Mining Company (RDMC), the project is currently in the construction stage, with feasibility studies, environmental and social impact assessments, and baseline studies already completed.
Pakistan’s economic progress relies on resilience, reform, and collaborative partnerships as no institution can deliver progress alone.
