Strategies discussed to explore minerals
Federal Minister for Petroleum Ali Pervaiz Malik on Thursday visited the Geological Survey of Pakistan (GSP) to review its operations and discuss strategies for enhancing exploration of the country's mineral and hydrocarbon resources.
He was given a detailed briefing by senior officials of the GSP on the ongoing geological surveys, mineral mapping initiatives and mineral hunt programmes to identify potential reserves across Pakistan.
He commended the organisation's recent efforts to identify the untapped natural resources and stressed the importance of modernising reconnaissance and exploration techniques to support Pakistan's oil, gas and mineral sector that would help fulfil economic needs of the country. He stressed "the global focus is on critical minerals. Mining and mineral opportunities are larger than any political party or person. It is unfortunate to use it for political point scoring. It should be looked upon from the lens of national interest to ensure these resources truly benefit the local communities and the nation".
"The Geological Survey of Pakistan plays a pivotal role in our national development by providing critical data to initiate resource exploration," said Ali Pervaiz Malik. "With the right investment in technology and expertise, we can unlock vast opportunities in minerals to ensure economic security and drive industrial growth." The minister highlighted the government's commitment to facilitating the GSP with advanced tools and international collaborations to accelerate geological research. He appreciated the accelerated mapping programme started by the GSP by using modern satellite imaging-based technologies for the unmapped areas of Pakistan to help harness the resource wealth effectively. ISO certification for the lab is also being aggressively pursued.
Accompanied by senior officials from the Ministry of Petroleum and the GSP, the minister toured key facilities, including laboratories and data centres, where he interacted with geologists and scientists. He assured them of support in overcoming challenges and achieving breakthroughs in resource discovery.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
a day ago
- Business Recorder
Minister tells NA: US, others can participate in offshore oil, gas bidding round
ISLAMABAD: The government on Wednesday dismissed any notion that Pakistan had entered into an exclusive oil exploration agreement with the United States, informing the National Assembly that all interested parties – including American companies – would be eligible to participate in the forthcoming offshore oil and gas bidding round, with awards expected in October. Responding to a calling attention notice, the Federal Minister for Petroleum, Ali Pervaiz Malik, stated that the second offshore bidding round was proceeding according to a formal and transparent process, scheduled to conclude on 2nd October this year. He noted that several international firms from the United States, China, Turkey, Kuwait, and other countries had expressed interest in the bidding rounds. The calling attention notice was moved by PPP lawmakers Nafeesa Shah, Naveed Qamar, and others, who sought clarification following a 31st July social media post by US President Donald Trump. Trump's post referred to a 'new deal' between Pakistan and the United States for joint oil development, which caused confusion owing to the absence of any official statement. In his reply, Malik confirmed that while resource assessments were ongoing, the government had not entered into any exclusive arrangement with any country. 'All decisions regarding block awards will be made after the completion of the offshore bidding process,' he assured the House, adding that Pakistan was engaging with multiple countries to modernise its energy policies and adopt advanced technologies. The minister emphasised the government's renewed commitment to energy exploration, particularly in the hydrocarbon sector, which had been largely neglected in recent years. 'Pakistan resumed oil and gas exploration earlier this year, launching an onshore bidding round in April that resulted in the award of 13 blocks, including one to Turkish Petroleum,' Malik said. He added that a second onshore bidding round, covering 23 blocks, was currently underway, with results also anticipated in October. Regarding the ongoing offshore round – the first in several years – he revealed that it covers 40 blocks, including those along the Indus Basin and near Gwadar. Applications have been submitted by companies from Turkey, China, Kuwait, and the United States. Details of successful bidders, block allocations, and investment commitments will be disclosed once the process concludes. On the financial side, Malik said developing a single onshore exploration well requires an investment of approximately $20-25 million, while offshore wells can cost over $120 million. Turning to unconventional resources, the minister cited a 2009 assessment by Italy's ENI estimating Pakistan's tight gas reserves at around 35 trillion cubic feet – roughly equivalent to three Sui gas fields. He added that the tight gas policy was updated in 2024 during a meeting of the Council of Common Interests (CCI), with nine new assessments currently underway. Regarding shale resources, Malik noted Pakistan's estimated shale oil reserves at approximately 14 billion barrels – more than ten times the country's cumulative oil production to date. He said a pilot shale gas recovery project by the state-owned Oil and Gas Development Company Limited (OGDCL), near Hyderabad, had completed its technical evaluation. A commercial study is now underway, which will inform a revised shale oil policy. Malik also referred to a 2015 USAID-backed study estimating substantial shale oil and gas potential in the Lower Indus Basin – far exceeding the country's total hydrocarbon extraction since independence. 'American collaboration remains a key component in assessing and developing these unconventional resources,' he affirmed, underlining Pakistan's interest in attracting US investment and expertise to diversify its energy portfolio. Copyright Business Recorder, 2025
Business Recorder
6 days ago
- Business Recorder
US trade diplomacy
Pakistan, under the 'euphoria of triumph', swiftly walked out, having made a deal with the United States with 19 percent US tariffs on its exports. This drew comparison with India — still embroiled in tariff conflict with US with no settlement in sight. Nevertheless, the comparison is not realistic. India got on the wrong side of Donald Trump who reprimanded it for supplying cheaper procured Russian oil to Europe at a high premium, thereby fuelling the Ukraine war. Additionally, India's engagement with BRICS, as its founding member, is looked upon with suspicion by the Trump administration. Whereas, historically, India's case stems from longstanding trade tensions: data localization rules, price caps on pharmaceuticals, and high tariffs on US imports — specially on its automotive industry. Pakistan, in contrast, has no such baggage. It does not restrict American tech firms, nor does it block market access. The flat 19 percent US tariffs are being quietly absorbed by Pakistan's export sector but should not be overlooked by policymakers. While this is a reduction from the earlier proposed 29 percent tariffs — ironically for Pakistan's struggling exporters, the difference between 19 percent and 29 percent is merely academic when compared to the 0-8 percent range they previously operated under — especially for core products like textiles, surgical goods, and sports equipment. The country's exporters, particularly small and medium enterprises (SMEs), operate on razor-thin margins. With rising energy costs at home and political instability feeding currency volatility and a country fighting for every export dollar, this is not an encouraging development. These blanket tariffs erode Pakistan's competitiveness, particularly in labour-intensive and price-sensitive sectors such as textiles, surgical instruments, sports goods, and leather products. These sectors are economic engines and critical to employment, particularly in vulnerable regions across Punjab, KP, and Sindh. Pakistan uncompetitiveness could reroute US buyers toward countries like Bangladesh, Jordan, Vietnam, or even Mexico, many of whom enjoy more favourable trade terms through Free Trade Agreements (FTAs) or GSP+ schemes. To preserve a healthy trade relationship and support Pakistan's economic stability, an optimal and friendly tariff would fall between 0 percent and 5 percent, at least for priority export categories like textiles and garments, surgical instruments and medical devices, sports goods, leather products and IT services (via digital trade facilitation). This would mirror the preferential access already offered to other developing or strategic allies. The US has mechanisms for this — whether through restoring GSP benefits, or negotiating product-specific concessions under bilateral economic frameworks. Pakistan has long been a strategic ally during the Cold War and the war on terror; more recently, the countries have made efforts aimed at obtaining regional stabilization. That alliance should be reflected in trade policy, not just security dialogue. This 19 percent tariff may seem like a routine trade adjustment, but its implications are far-reaching at a time when Pakistan's economy can least afford it. Political goodwill, unless translated into economic terms, quickly turns into irrelevance. It is now a time for proactive trade diplomacy. Copyright Business Recorder, 2025
Business Recorder
05-08-2025
- Business Recorder
Rs431bn owed to Chinese power projects: PD and SBP at odds over repatriation?
ISLAMABAD: The Power Division and the State Bank of Pakistan (SBP) are reportedly at odds over the repatriation of Rs 431 billion owed to Chinese power sector projects—an amount meant to be repatriated through commercial banks, well-informed sources told Business Recorder. This issue came to light during a meeting of the Sub-Committee on Reforms, chaired by Minister for Petroleum and Natural Resources Ali Pervaiz Malik. The meeting was also attended by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar. Chinese coal-fired power projects, such as Port Qasim and Sahiwal, have been persistently writing to the Ministry of Finance, seeking clearance of these outstanding payments. Chinese IPPs face Rs500bn in unpaid dues The matter surfaced during discussions on proposed measures to mitigate currency risks for foreign investors in Pakistan. The SBP stated that no loan repayments—whether principal or interest—nor profit repatriation payments are pending with the SBP or any commercial bank. The central bank acknowledged that only a profit payment of $26.5 million is pending with one commercial bank, which it expects will be cleared soon. SBP further clarified that no verbal or written directives had been issued to commercial banks to delay LC payments or other financial transactions. However, the Power Division reported that while the power payment cycle typically spans 90 days, Rs 431 billion in payments remain stuck with commercial banks—primarily for non-energy components. A detailed ageing report presented during the meeting indicated that while no energy payments have been overdue for more than three months, non-energy payments have been pending for years. The depreciation of the rupee has further reduced the dollar value of these payments. No representatives from NEPRA attended the meeting, and no information was shared regarding eight pending cases. The SBP reiterated that no Chinese company payments are currently pending for profit repatriation or debt servicing, and it has issued no instructions—verbal or written—to banks in this context. However, the SBP was asked to provide a written report detailing all payments to Chinese companies pending with commercial banks, including ageing data. The Power Division maintained its stance that Rs 431 billion in payments are pending with various banks and remain un-repatriated by the concerned Chinese companies. NEPRA was directed to provide an update on the potential claw back of the eight cases under adjudication. No conclusive way forward was proposed during the session. The committee noted a divergence in views between the SBP and the Power Division, making it difficult to issue a clear recommendation due to the lack of clarity. The chair emphasized several core principles as essential for attracting investment: (i) adherence to due process of law ;(ii) sanctity and enforceability of contracts;(iii) provision of adequate security measures ;(iv) a competitive and transparent process, and (v) policy consistency and predictability in the medium term. Regarding the development of physical infrastructure and utility services at Special Economic Zones (SEZs) and Export Processing Zones (EPZs), the Board of Investment (BoI) informed the sub-committee that six SEZs will be marketed to Chinese investors. BoI said that 40 companies have been identified to showcase as success stories, which will be narrowed down to 5–10 for targeted promotion. The committee supported promoting six SEZs—AIIC, BQIP, KIP, Rashakai, Dhabeji, and PSM—to Chinese investors. Of these, 3,000 acres are available for development at PSM and 700 acres at AIIC, with additional land parcels available at other developed SEZs, all equipped with basic amenities. The committee recommended establishing Service Level Agreements (SLAs) to define timelines. On easing regulatory hurdles and creating a one-stop-shop mechanism integrating federal and provincial authorities, the BoI presented updates on its Business Facilitation Center (BFC) initiative. BoI highlighted the 'regulatory guillotine' efforts and modernization of the Companies Act. The Cabinet Committee on Regulatory Reforms (CCoRR) has been notified, and BoI claims that two reform packages will reduce the cost of doing business by Rs 250 billion. Three additional reform packages are in the pipeline for CCoRR approval. BoI also shared its role in integrating 20 departments with SECP, harmonizing food standards across federal and provincial jurisdictions, and reducing DRAP's medical device registration timeline from two years to 45 days. The committee recommended that BoI implement a hub-and-spoke model for BFCs linked to regional offices in the six priority SEZs. SLAs will also be developed for these centers to provide transparency and predictability for investors. On reducing port clearance times and enhancing cold chain logistics, the Secretary of the Ministry of Maritime Affairs (MoMA), along with the Chairman of Port Qasim Authority (PQA) and the General Manager (Operations) of Karachi Port Trust (KPT), briefed the committee. They reported that recent reforms have reduced consignment clearance time by 24–48 hours. However, no precise data was available on reefer (refrigerated container) occupancy or costs. It was also noted that 35–40% of consignments are routed through yellow or red channels, and various departments at ports impact both import and export processes. The chair inquired whether consignments of vetted and established investors could be moved to the green channel. The committee recommended developing a comprehensive port governance model that ensures one-window operations and standard procedures for cold chain storage, aligned with international best practices. SLAs should also be signed with investors to guarantee faster clearance of their consignments. Pre-clearance mechanisms and a grievance redressal help desk for reputable importers were also advised. Lastly, the chair took serious notice of the long-vacant post of Chairman KPT and directed the Secretary of MoMA to resolve the matter urgently. A 'look-after' charge must also be assigned without delay. Copyright Business Recorder, 2025
