KEY POINTS
- Pakistan is rich in natural resources, including significant deposits of copper, gold, iron ore, and coal.
- The mining sector contributes only about 2.5 per cent to the country’s GDP.
- PMIF25 aims to attract global investors to explore Pakistan’s mineral wealth.
- The mining sector faces challenges such as outdated mining techniques, insufficient infrastructure, bureaucratic delays, and security concerns.
- Government mulls setting up mining and refining corridor under the China-Pakistan Economic Corridor (CPEC).
ISLAMABAD: Pakistan is poised for a major transformation in its mineral sector, as it looks to leverage its vast natural resources to drive economic growth.
The Pakistan Minerals Investment Forum 2025 (PMIF25), scheduled for April 8-9, 2025 at the Jinnah Convention Centre here, is expected to be a game-changing event.
Organised by the Oil and Gas Development Company Limited (OGDCL), in collaboration with the Government of Pakistan and strategic partners, the event is focused on attracting global investors to explore opportunities in Pakistan’s mineral wealth.
The game-changer
The Pakistan Minerals Investment Forum 2025 is being viewed as a strategic step towards reversing this trend.
By encouraging foreign direct investment (FDI) and public-private partnerships, the government aims at modernising mining technology, establishing processing facilities, and improving regulatory mechanisms.
Officials from the Planning Commission of Pakistan indicate that the government is looking to establish a mining and refining corridor under the China-Pakistan Economic Corridor (CPEC) framework to enhance the downstream mineral industry.
Pakistan’s rich mineral reserves
With significant deposits of copper, gold, iron ore, and coal, Pakistan remains an underutilised player in the global mineral market.
The Reko Diq area in Balochistan is believed to contain one of the world’s largest untapped copper deposits, positioning Pakistan as a key emerging supplier.
The country also possesses vast coal reserves in Sindh’s Thar region, estimated at over 175 billion tonnes, along with major salt, gypsum, and marble deposits.
Despite sitting on a goldmine of opportunities, the mining sector contributes only about 2.5 per cent to the Gross Domestic Product (GDP), underscoring the untapped potential.
According to the data from the Pakistan Minerals Development Corporation (PMDC), the country exported approximately 650,000 metric tonnes of chromite, 1.2 million metric tonnes of salt, and over 3 million metric tonnes of gypsum in 2024.
However, a lack of refining and processing infrastructure limits the value-added potential of these exports, leading to increased reliance on raw material exports instead of finished products.
According to a study by the Planning Commission, Pakistan is endowed with huge reserves of minerals covering an outcrop area of 600,000 square kilometres.
There are 92 known minerals of which 52 are commercially exploited with a total production of 68.52 million metric tonnes per year.
The sector is a promising one with an average growth of 2-3 per cent per annum, the existence of over 5,000 operational mines, 50,000 short and medium entrepreneurs (SMEs) and direct employment of 300,000 workers.
The industry sources claim that these numbers have improved but no latest official data is available so far.
The country has the world’s second largest salt mines and fifth largest copper and gold reserves, and second largest coal deposits, as well as estimated billions of barrels of crude oil.
Despite a huge potential, contribution of mineral sector to Pakistan’s GDP is around 3 per cent and country’s exports are only about 0.1 per cent of the world’s total.
In the year 2017, Pakistan’s total mineral exports were $0.5 billion as compared to the world’s $401 billion.
The country also possesses vast coal reserves in Sindh’s Thar region, estimated at over 175 billion tons, along with major salt, gypsum, and marble deposits.
Despite this wealth, the mining sector contributes only about 2.5% to the GDP, underscoring the untapped potential.
According to data from the Pakistan Minerals Development Corporation (PMDC), the country exported approximately 650,000 metric tons of chromite, 1.2 million metric tons of salt, and over 3 million metric tons of gypsum in 2024.
However, a lack of refining and processing infrastructure limits the value-added potential of these exports, leading to increased reliance on raw material exports instead of finished products.
The Pakistan Minerals Investment Forum 2025 is being viewed as a strategic step towards reversing this trend.
By encouraging foreign direct investment (FDI) and public-private partnerships, the government aims at modernising mining technology, establish processing facilities, and improve regulatory mechanisms.
Officials from the Planning Commission of Pakistan have indicated that the government is looking to establish a mining and refining corridor under the China-Pakistan Economic Corridor (CPEC) framework to enhance the downstream mineral industry.
Key challenges
However, challenges remain. Outdated mining techniques, insufficient infrastructure, and a complex regulatory environment continue to hinder large-scale industrialisation of the sector.
Bureaucratic red tape has slowed down approvals for new mining projects, while security concerns in mineral-rich regions like Balochistan and Khyber Pakhtunkhwa discourage foreign investment.
Additionally, several other gaps exist in the exploitation and marketing of minerals. The regulatory framework is a missing link between the national mineral policy and provincial mining policies/laws, resulting in procedural delays, which creates hurdles for investors particularly for foreign investors.
Insufficient Infrastructure for enabling business such as mine access roads, connecting roads network, utilities and industrial zones are some of the key factors behind low investment and poor growth of the minerals sector.
Technology adopted both in the quarrying and processing sub sectors is outdated and is unable to produce standardised and uniform quality products for the domestic market in general and for the export market in particular.
The quarry wastage in Pakistan reaches 75 per cent as compared to the international standard of up to 45 per cent.
Steps to attract investment
Addressing these concerns, the government is planning new mining-friendly policies, including a streamlined one-window operation for investment approvals and tax incentives for mining companies willing to set up refining units within Pakistan.
Experts believe that if Pakistan successfully develops its mining industry, it could become a major player in the global commodities market, reducing reliance on imported minerals and significantly increasing its exports.
The upcoming forum is expected to bring together stakeholders from across the globe, including China, Canada, and Australia, to explore potential collaborations.
Analysts predict that with proper investment, Pakistan’s mining sector could contribute up to 7 per cent of the GDP by 2030, creating thousands of jobs and strengthening the country’s industrial backbone.
As the PMIF25 approaches, all eyes are on Islamabad, with hopes that this event will be the light at the end of the tunnel for Pakistan’s long-overdue mineral industry revolution.
