Minerals framework being finalised
Listen to article
ISLAMABAD:
The government is close to finalising the National Minerals Harmonisation Framework 2025, a key initiative aimed at attracting investment in the mineral sector.
All provinces, Azad Jammu and Kashmir and Gilgit-Baltistan are to adopt the policy by February 26 this year. It will also be unveiled at the Pakistan Critical Minerals Summit, planned for April 9.
Saudi Arabia has already expressed interest in acquiring 15% shares in the Reko Diq copper and gold mining project. The framework will help to formalise the policy at the domestic and national levels, which will encourage investment in Pakistan's mining sector.
This is a key initiative of the Special Investment Facilitation Council (SIFC) for the mining industry.
Sources said that the federal government was striving to take all provinces on board while finalising the National Minerals Harmonisation Framework 2025.
They said that the provinces had been kept involved at all stages, including exclusive briefings to the chief secretaries followed by the chief ministers as well as in consultations with large and small-scale mining companies, mining associations, state-owned enterprises (SOEs) and provincial mining departments.
Over 750 points were raised, of which 694 have been settled and incorporated into the framework. As a result, the harmonised Mines and Minerals Act 2025 and the National Mineral Development Policy 2025 are now ready for adoption and implementation. These will be showcased during the upcoming Pakistan Minerals Summit in April.
Sources said that the federal government, in collaboration with the relevant stakeholders, was to finalise the Mines Safety and Health Act 2025 and present a milestone-based action plan to ensure its adoption by all provinces before June 2025.
All chief ministers and the AJK prime minister are required to curb illegal mineral mining and ensure that no lease is granted to foreign companies involving the extraction and export of raw material, as already incorporated into the Mines and Minerals Act 2025.
They will also identify provincial policies and laws that directly impact foreign direct investment and industrial development in the country. They will collaborate with the Ministry of Law and Justice for initiating the harmonisation of laws through the Council of Common Interests (CCI) to effectively facilitate investors and promote ease of doing business.
Pakistan has already chalked out a $1.9 billion funding plan to execute the Reko Diq copper and gold mining project. Total project funding has been estimated at $4.297 billion.
Of the total, the share of state-owned enterprises' special purpose vehicle (SPV) will be $1.194 billion and that of the government of Balochistan SPV $717 million, according to the definitive agreements for the Reko Diq mining project in Chagai, Balochistan.
Balochistan's contribution will be funded by the government of Pakistan.
According to a plan, in case debt financing is raised, Pakistan's government will provide a back-to-back guarantee for the government of Balochistan SPV shareholders' pro rata share under any project finance facilities prior to the execution of financing documents with approval of the Economic Coordination Committee (ECC).
With the approval of federal and provincial cabinets, the government of Pakistan and the government of Balochistan had entered into an out-of-court dispute settlement with Tethyan Copper Company, Australia (TCCA) in respect of the Reko Diq copper and gold project.
They reached the agreement after adverse arbitrary awards by the International Centre for the Settlement of Investment Disputes (ICSID) and due to expected similar awards from the International Chamber of Commerce (ICC) against Pakistan's government and the Balochistan province, respectively.
These arrangements include the development of mineral resources under a reconstituted Reko Diq project comprising a joint venture among Barrick Gold Corporation, the government of Balochistan and state-owned enterprises namely Pakistan Petroleum, Oil and Gas Development Company and Government Holdings (Pvt) Limited.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
30-05-2025
- Business Recorder
Reko Diq mining company holds ‘supplier road show' in Karachi
KARACHI: Reko Diq Mining Company (RDMC), operated by Barrick Mining Corporation, hosted the Pakistan Supplier Road Show in Karachi to connect with prospective vendors and suppliers from across the country. The event was part of RDMC's ongoing efforts to build a robust, inclusive, and competitive supply chain for the Reko Diq project, one of the world's largest undeveloped copper-gold mines. The road show, led by RDMC's Supply Chain team, attracted over 200 companies, including small and medium enterprises from Balochistan as well as national-level firms. Participants were provided an overview of the Reko Diq project, its operational values, procurement strategy, tax regime, community development initiatives, hiring policies and opportunities for partnership during the construction and operational phases. The Karachi expo follows a similar Vendors Expo held earlier in Quetta last year. The forum allowed potential partners to ask questions, understand RDMC's standards and expectations, and explore registration processes for becoming qualified suppliers. Copyright Business Recorder, 2025
Business Recorder
28-05-2025
- Business Recorder
Chairman Railways tells Senate body: 38 projects worth Rs260.085bn underway in 2024–25
ISLAMABAD: Chairman of Railways Tuesday informed Senate Standing Committee on Railways that a total of 38 projects were underway, with a total cost of Rs 260.085 billion during 2024–25. The meeting of the Senate Standing Committee on Railways, chaired by Senator Jam Saifullah Khan, was convened Tuesday. The Ministry of Railways briefed the Senate Committee on upcoming, ongoing, and pending projects and informed the committee members about the hurdles currently being faced by the ministry. The meeting was attended by senators, Nasir Mehmood, Dost Ali Jeesar, Asad Qasim, Saifullah Sarwar Khan Nyazee, Kamil Ali Agha, Dost Muhammad Khan, the mover Senator Shahadat Awan, and the Minister for Railways. The chairman of Railways told the Senate Standing Committee on Railways that during the year 2024–25, a total of 38 projects were underway, with a total cost of Rs260.085 billion. Out of the 38 projects, the ministry successfully completed six, and the remaining 32 have been carried forward to 2025–26. The chairman, while briefing on the Main Line (ML-1) project (Karachi to Rohri),described it as the lifeline of the Reko Diq and Thar Coal projects, which are expected to start this year, depending on the provision of funds. He added that the total estimated cost of ML-1 isRs2,298.18 billion, and the ministry has submitted a proposal for an allocation of Rs75 billion for the financial year 2025–26 to initiate the project. It was also revealed to the committee that total 12 projects of expansion, track safety, rehabilitation, replacement of tracks, feasibility studies and upgraded security system required proposed allocation Rs11,076 million during the financial year of 2025-26. The committee demanded the details of delayed projects in the upcoming meeting of the Standing Committee. The committee members commended the newly adopted strategy of the ministry to complete the projects partially in different phases. The chairman of the committee emphasised the need to complete projects on time to avoid extended costs and directed the ministry to deliver high-end railway services to the general public. The Minister for Railways said that, as the country is passing through a financial crisis, the provinces may contribute to the new or ongoing railway projects in their respective areas. He stated that the ministry is planning to upgrade railway schools and hospitals across Pakistan. In response to a query regarding railway land, the minister informed the committee that an anti-encroachment campaign has recently been initiated nationwide against land grabbers. It was also briefed to the committee that Pakistan has developed locomotives and coaches capable of running at speeds over 160 km/h, but unfortunately, the country lacks the required tracks to operate such trains. The chairman of the committee directed the ministry to conduct a feasibility study on upgrading of track system to support high-speed trains in Pakistan. Copyright Business Recorder, 2025
Express Tribune
25-05-2025
- Express Tribune
Operation Bunyanum Marsoos to operation economy
Listen to article The Operation Bunyan Marsoos (OBM) concluded with a decisive victory for Pakistan. The armed forces' zeal and unwavering commitment to protecting the motherland thwarted all attempts by adversaries (India and Israel). Pakistan has once again demonstrated its ability to be a formidable power, possessing both the will and the capacity to safeguard its sovereignty and interests. This reinforces the fact that in challenging times, Pakistan achieves remarkable feats, and Pakistanis are a steadfast and resilient nation. The Pakistani nation has demonstrated this repeatedly, from the 1965 war to the 2022 flood. Thus, no one should doubt the ability or resolve of the people and the State of Pakistan to defend its sovereignty and interests. However, the zeal and commitment were not without wisdom. It is apparent from the decision-making, observance of merit, appointment of the right person for the right job, and establishment of the chain of command. for example, the army, air force, and navy are always led by professional and brilliant soldiers from their respective fields. it never happened that a navy sailor led the air force. the observance of merit and commitment to the right person for the right job has turned the armed forces into a formidable power and contributed to remarkable achievements. Pakistan needs to carry the same mentality, policy, strategy, and commitment to turn around the economy. Firstly, apply the policy of the right person for the right job. In pursuance of this policy, Pakistan needs to entrust economic planning and management to economic professionals with brains. They are trained to formulate and oversee economic strategies. A bird's-eye view of global economic institutions, as well as national ministries and departments, clearly indicates that economists lead the charge in driving economic progress. Unfortunately, in the case of Pakistan, the situation is quite different. Economists are often sidelined, while those outside of the field frequently manage economic affairs. The Special Investment Facilitation Council (SIFC) serves as a prime example in this regard. SIFC is an excellent and timely initiative; it was much needed. However, its execution falls short. Policymakers have overlooked the importance of selecting the right people for the right jobs. SIFC has been staffed with bureaucrats and military personnel who possess little or no understanding of the economy or its dynamics. Consequently, after more than two years, aside from a few projects, SIFC has struggled to deliver on its perceived objectives. The finance ministry offers another prominent example. It is often led by chartered accountants and bankers who are not trained to plan or manage the economy. Second, indigenous wisdom and local experts, who are working within the system, should lead the development of economic policies and plans. They may not be good at speaking English or giving fancy presentations, but they know the economy better than anyone else. They have devoted their lives to understanding and operating the economic system during its most challenging times. They are aware of the strengths and weaknesses of Pakistan's economic system. Unfortunately, the Pakistani elite do not like them and discourage them. The elite enjoy listening to fancy presentations and fluent English and are impressed by international organisations' tags, such as the World Bank and the International Monetary Fund (IMF). Thus, they love to import expats and consultants. The expats and imported consultants do not fully understand the ground realities, weaknesses, and strengths of Pakistan's economic system. They only give fancy slogans or do marketing for foreign companies. They are selling false dreams of entering the tertiary economy by bypassing the secondary economy, which is not possible. Unfortunately, our elite is happy with such slogans. Third, before devising any policy or plan, policymakers and planners must have a strong understanding of the ground realities. It must be a prerequisite for policy development. For example, these days, every expat and imported consultant is talking about technology and urging Pakistan to venture into it and make it a leading area of work. There is no second opinion that Pakistan must venture into the technology field; however, it should have a place on the priority list, given its role in the economy and Pakistan's economic status. There is no harm in dreaming big, but we must also remember that the execution of policies and plans is done based on ground realities, not fancy slogans. The ground realities indicate that Pakistan is not a major producer of technology, especially as it lags in the production of hardware such as machines, laptops, satellites, or mobile phones. Pakistan is only a consumer of the technology, and expats and consultants advise them to buy technology from global companies. Furthermore, the analysis of ground realities suggests that, at present, the strength of our economy is based on agriculture, minerals, livestock, tourism, and defence products, among others. Thus, we need to focus on modernising agriculture, developing an agricultural and livestock value chain, and building markets for defence products. Simultaneously, Pakistan needs to work towards transitioning to a secondary economy by fast-tracking industrialisation. The transition will also give an impetus to technology development. Unfortunately, we are not doing it. We are blindly running after the fancy slogans raised by expats or imported consultants. Thus, if Pakistan wants to grow, Pakistan needs to change. If Pakistan successfully changes, then Pakistan can turn around its economy. Fortunately, we have an excellent opportunity to do so through the China-Pakistan Economic Corridor (CPEC). The CPEC has all the ingredients that can help Pakistan revive its economy and pave the way for sustainable development. Following the successful completion of the first phase, CPEC has now entered its second phase. The long-term document of CPEC shows that industrialisation and agricultural cooperation would be driving forces during the second phase. Moreover, Pakistan and China have strengthened their science and technology cooperation to create and enhance Pakistan's technological base. These three areas of collaboration can fast-track the transition to the secondary economy and pave the way for the tertiary economy. However, to fully benefit from the CPEC and leverage our strengths, Pakistan must address the areas discussed above. Let's try to understand the importance of these areas or required interventions through an example. For instance, consider a scenario: can Pakistan appoint a skilled doctor to the post of air chief marshal instead of a professional soldier from the Pakistan Air Force? If Pakistan had appointed an engineer as air chief marshal, what would have been the status of Pakistan in the recent war? During the recent conflict, the air force was led by a career soldier who dedicated his life to the Pakistan Air Force. Now, imagine another scenario: was it appropriate to hire a foreign consultant, such as someone from the American Air Force, to lead the Pakistani Air Force by arguing that he leads the most advanced and largest air force in the world? No, not at all, because he does not understand the Pakistani Air Force and lacks the passion to serve the country. The same is true for the economy. In conclusion, based on the above discussion and examples, three suggestions can be listed: hiring the right person for the right job, stopping the import of expats and consultants, and making decisions based on ground realities. THE WRITER IS A POLITICAL ECONOMIST AND A VISITING RESEARCH FELLOW AT HEBEI UNIVERSITY, CHINA
