Buried Riches: Can Mining Revive Pakistan’s Economy?

Fakhar-e-Alam

Peshawar: Pakistan is a country blessed with abundant natural resources, yet much of its mineral wealth remains untapped. From gold and copper to coal and gemstones, the vast mineral deposits spread across Balochistan, Khyber-Pakhtunkhwa, and Sindh hold the promise of economic prosperity and industrial growth.

However, despite their immense potential, these resources have yet to be fully utilized due to infrastructural challenges, regulatory hurdles, and inconsistent government policies. With renewed focus and strategic investments, the mining sector could emerge as a game-changer for Pakistan’s economy, reducing reliance on foreign aid and improving livelihoods.

The Untapped Treasure Trove

Balochistan’s Reko Diq project, with an estimated reserve worth over $260 billion, exemplifies the mineral wealth hidden beneath Pakistan’s soil. Similarly, the Thar coalfields—among the largest untapped reserves globally—present an opportunity to address the country’s energy needs and even explore export markets.

Meanwhile, Khyber-Pakhtunkhwa is home to rich reserves of marble, granite, and gemstones, waiting to be harnessed to their full potential.

The presence of these deposits has been known for decades, yet progress in extraction and development has been slow. Many projects remain stuck in the planning, tendering, or bidding phases, while others have faced delays due to legal disputes and bureaucratic red tape.

Reko Diq, for instance, suffered setbacks due to legal battles between local authorities and mining companies, stalling its development despite its significance to the national economy.

Challenges Hindering Progress

Despite its resource abundance, Pakistan’s mining sector remains largely underdeveloped. Several key factors contribute to this stagnation:

• Poor roads, lack of electricity, and inadequate facilities in mining regions make large-scale extraction difficult.
• Overlapping jurisdictions and complicated legal frameworks discourage investment.
• Many miners continue to use outdated equipment, resulting in inefficiencies and excessive resource waste.
• While there is growing interest from foreign investors, the sector still lacks the funding required for sustainable development.

A Ray of Hope

The China-Pakistan Economic Corridor (CPEC) has been a game-changer in Pakistan’s infrastructural development, and its impact on the mining industry is expected to be significant. By improving road networks and energy supply to mineral-rich areas, CPEC can help unlock the true potential of the sector.

Additionally, countries such as Saudi Arabia and Kuwait have expressed interest in investing in Pakistan’s mineral resources, a move that could bring much-needed financial and technical support.

Economist Dr Naeemur Rehman Khattak believes that the government’s move to modernize the mining sector through tax incentives and regulatory reforms will attract both local and foreign investors.

“Pakistan’s revised mineral exploration laws aim to encourage wider participation, creating opportunities for both large-scale corporations and smaller mining ventures,” he says.

Projects like Reko Diq and Thar coalfields have the potential to significantly boost Pakistan’s exports of coal and precious metals while generating thousands of jobs in mining, infrastructure, and related industries such as cement and steel production. Beyond traditional mining, Pakistan’s gemstone industry also holds an estimated export potential of $32 billion, an opportunity that remains largely unexploited.

A Hidden Gem

Khyber-Pakhtunkhwa is home to a vast reserve of high-quality marble and granite, yet much of it is wasted due to outdated extraction methods.

Faraz Ahmed, a marble miner from Peshawar, highlights the profitability of the sector, stating that an investor with basic knowledge and a three-million-rupee investment could earn up to ten million rupees annually.

However, he emphasizes the need for modern techniques and machinery to reduce waste and increase efficiency.

“There is massive demand for marble from Mohmand, Swat, and Buner, both within Pakistan and abroad,” he explains. “But without proper equipment and skilled labor, a significant portion of our marble is lost during extraction.”

To address these issues, the KP government has introduced initiatives such as the Mining Cadastre Portal, aimed at improving transparency and simplifying the investment process. Mapping and exploration of mineral sites are underway in regions like Chitral, Orakzai, and Kurram, with the Geological Survey of Pakistan (GSP) playing a key role.

Additionally, the establishment of a gemstone laboratory is expected to improve the mineral testing process, adding value to the sector.

A Future Built on Minerals

With the right policies, investments, and technological advancements, Pakistan’s mining sector could serve as a pillar of economic growth.

The construction of Mohmand Marble City, spanning 350 acres, is one such step toward industrializing the sector, with similar projects planned for Buner. Furthermore, Special Economic Zones (SEZs) in Rashakai and Nowshera are allocating land for marble and mining units, ensuring a structured approach to industrial expansion.

As Pakistan grapples with economic challenges, tapping into its mineral wealth could provide the much-needed revenue generation and foreign exchange earnings to break free from debt dependency. A well-developed mining sector would not only boost the economy but also create employment opportunities and enhance the country’s global trade standing.

The question now is: Will Pakistan seize this opportunity to transform its natural wealth into national prosperity? With strategic planning, commitment, and investor confidence, the answer could very well be a resounding yes.