Pakistan bets on minerals for revival!

Express Tribune

09-04-2025

The writer is a public policy analyst based in Lahore. She can be reached at [e-mail]
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New doors of opportunity have been thrown open for local and foreign investors in Pakistan's largely untapped mineral wealth — estimated to be worth trillions of dollars — at the Pakistan Minerals Investment Forum 2025 (PMIF25).
Held at the Jinnah Convention Centre in Islamabad, this two-day summit has drawn over 2,000 participants, including more than 300 delegates from countries such as China, Saudi Arabia, the US, the UK and Finland. The objective has been to showcase Pakistan's mineral potential and position the country as a key player in the global mining supply chain. The event was organised jointly by the Government of Pakistan, the Oil and Gas Development Company Limited (OGDCL) and international stakeholders.
The rationale behind launching PMIF25 is rooted in Pakistan's urgent need to diversify its economy, attract foreign direct investment and reduce dependence on multilateral lenders like the IMF.
A notable shift in government policy is the emphasis on exporting semi-finished and finished mineral products rather than shipping raw materials abroad. This pivot not only promises higher returns but also supports job creation and skill development at home.
Deputy Prime Minister Ishaq Dar echoed similar optimism, launching the National Minerals Harmonisation Framework 2025, an integrated reform initiative designed to align policies across federal and provincial levels. He described Pakistan as "strategically positioned to emerge as a global mining powerhouse" due to its rich geological landscape, including world-class deposits such as Reko Diq and untapped reserves of rare earth elements and gemstones.
Central to this new planning is Balochistan, a province long known for its resource wealth but equally burdened by neglect and instability. Reko Diq, located in the Chagai district, is among the largest undeveloped copper-gold projects in the world. Saudi Arabia's Manara Minerals has expressed interest in investing in the project, having already visited Pakistan last year for exploratory talks.
Commerce Minister Jam Kamal, during a panel discussion, pointed out that Balochistan could spearhead Pakistan's transformation in the mineral sector - provided that security concerns and regulatory bottlenecks are effectively addressed. His comments underscore a crucial reality: that the success of this initiative hinges as much on governance and infrastructure as it does on geology.
There is no doubt that PMIF25 has generated substantial interest. The presence of high-level international delegations, including Eric Meyer from the US State Department and Saudi Arabia's Vice Minister for Minerals, signals potential for long-term partnerships. Equally noteworthy is the government's proposal that any investment agreement should include technology transfer provisions. This would ensure that Pakistan not only benefits from mineral wealth in the short term but also builds local capacity in extraction, processing, and equipment manufacturing.
Skill development also emerged as a recurring theme, with calls for vocational training centres that would equip Pakistan's youth with technical expertise required for modern mining and processing.
While the promises are bold, the assumption that PMIF25 alone could help Pakistan eliminate its dependence on the IMF appears overly optimistic. The mineral sector currently contributes only about 3.2% to Pakistan's GDP. Transforming it into a cornerstone of economic self-reliance will take more than just declarations and summits.
The real challenge lies in Pakistan's business environment. Investors frequently cite regulatory unpredictability, delayed approvals, security risks - particularly in resource-rich regions like Balochistan - and an over-complicated tax regime as key deterrents. Moreover, despite the creation of high-profile platforms like CPEC and SIFC, Pakistan has repeatedly found itself returning to the IMF's doorstep.
These institutions, while designed to attract investment and streamline decision-making, have not delivered the kind of economic transformation initially envisioned. The disconnect between grand announcements and ground realities must be addressed for PMIF25 to succeed where past initiatives have faltered.
If Pakistan genuinely seeks to unlock its mineral potential, it must go beyond forums and frameworks. First, there needs to be political consistency and regulatory stability across provinces. Second, security in mineral-rich zones must be prioritised without alienating local communities. Third, transparency in licensing, environmental compliance and profit-sharing is essential to gain investor confidence and ensure equitable development.
The government must also address the broader economic context in which mining firms operate — high inflation, currency volatility and energy shortages remain major hurdles. Without fixing these foundational issues, no amount of mineral wealth will translate into national prosperity.
Pakistan's mineral resources are vast, and the potential is real. PMIF25 is a step in the right direction — especially in its emphasis on value-added exports, skill development and international cooperation. But turning this potential into economic resilience requires more than announcements. It demands sustained reform, efficient governance and a commitment to long-term policy implementation.
The mineral sector can be a game-changer, but only if Pakistan creates a conducive environment where business thrives, risks are manageable and benefits are widely shared. The world is watching. It's time to deliver.
Despite the event's significance, it has not been without criticism, including from segments of the Pakistani diaspora. Some voices abroad have questioned the government's motives and capacity even before the project takes off. While constructive criticism is a democratic right, one wonders if the reflexive scepticism from certain quarters — living in comfort and security overseas — may unintentionally echo the narratives of Pakistan's detractors. It raises the unsettling question: are some critics more invested in Pakistan's failure than its success?
In the final analysis, the Pakistan Minerals Investment Forum offers an opportunity to shift gears and diversify the economy. But whether this becomes a landmark success or another unfulfilled promise will depend not just on the size of the rocks under our soil, but on the strength of the institutions above it.