Latest news with #MuhammadAliTabba
Business Recorder
24-05-2025
- Automotive
- Business Recorder
Proposed tariff rationalisation plan discussed
ISLAMABAD: Chairman of Lucky Motor Corporation (LMC) Muhammad Ali Tabba has met with the Federal Minister for Finance and the Special Assistant to the Prime Minister (SAPM) on Industries and Production to share his concerns regarding the government's proposed Tariff Rationalisation Plan, particularly the reduction of duties on Completely Built-Up (CBU) vehicles to 15 percent over a period of five years. He emphasised that while the intent behind tariff rationalisation may be to make cars more affordable for customers, the proposal currently under consideration—if implemented without a well-thought-out approach—could have an adverse impact on Pakistan's local auto industry, undermine investor confidence, and lead to a current account deficit. He noted that under the Auto Development Policy (ADP) 2016–2021, Korean, European, and Chinese automakers entered the Pakistani automotive market with a cumulative investment of approximately $1.2 billion to establish local manufacturing plants. This initiative achieved key objectives, including offering more choices to consumers, fostering competition, and creating employment opportunities both in vehicle assembly and the auto parts manufacturing sector. While expressing support for the government's initiative to rationalise tariffs, Tabba stressed that a significant gap must be maintained between CBU and Completely Knocked-Down (CKD) duty rates in order to protect the domestic auto industry. He suggested that a consultation session be held with key stakeholders to determine the appropriate duty differential between CBU and CKD imports in order to safeguard the local auto industry. In addition to tariff concerns, he voiced his reservations about the potential liberalisation of used car imports. He stated that Pakistan's auto industry currently produces and sells around 150,000 units per year and hosts approximately 16 automobile brands — offering far more consumer choice than in the past. In this context, there is no justification for liberalising used car imports. He also expressed concern over the government's proposal to allow the commercial import of used cars, warning that such a policy could turn Pakistan into a 'junkyard' of second-hand vehicles. Given Pakistan's fiscal constraints and limited foreign exchange reserves, Tabba proposed that a liberal import and tariff regime is unsustainable and would likely result in the depletion of FX reserves, a widening current account deficit, and further depreciation of the PKR. In response, the SAPM on Industries and Production assured Tabba that the government values industry input and will consult all stakeholders before finalising any decisions on the tariff rationalisation and used car import policies. Copyright Business Recorder, 2025
Express Tribune
24-05-2025
- Automotive
- Express Tribune
Reduction in duties on vehicles rejected
Listen to article Lucky Motor Corporation Chairman Muhammad Ali Tabba has aired concerns over the government's proposed tariff rationalisation plan, particularly the reduction in duties on completely built-up (CBU) vehicles to 15% over a period of five years. Tabba emphasised that while the intent behind tariff rationalisation may be to make cars more affordable for customers, the proposal currently under consideration, if implemented without a well-thought-out approach, could have an adverse impact on Pakistan's auto industry, undermine investor confidence and lead to a current account deficit. He made the remarks while meeting Federal Minister for Finance Muhammad Aurangzeb and Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan. He noted that under the Auto Development Policy (ADP) 2016-2021, Korean, European and Chinese automakers entered the Pakistani market with a cumulative investment of $1.2 billion to establish their manufacturing plants. This initiative achieved key objectives, including offering more choices to consumers, fostering competition and creating employment opportunities both in vehicle assembly and auto parts manufacturing sectors.
India.com
29-04-2025
- Business
- India.com
Gold reserves, precious stones, and minerals: Where are Pakistan's 'trillion-dollar' resources hidden?
Gold reserves, precious stones, and minerals: Where are Pakistan's 'trillion-dollar' resources hidden? Pakistan's resources: In the dry and dusty Chagai region of Pakistan's Balochistan province, some of the world's most valuable mineral resources are hidden. These include large amounts of copper and gold. Pakistan's political and military leaders believe these resources can attract billions of dollars in investment. After the discoveries at Reko Diq and Saindak, there are now new claims of more mineral findings in Chagai. A private company, National Resources Limited (NRL), which has the contract for mineral exploration in Chagai, says they have found new reserves of gold and copper in the area. At the 'Pakistan Minerals Investment Forum 2025' held last week, NRL shared that signs of minerals have been found in the 'Tang Ghor' area of Chagai. NRL's head, Muhammad Ali Tabba, said international experts and investors will also join this big project. During the same event, Mari Energies claimed they discovered new gas and oil reserves in North Waziristan, located in Khyber Pakhtunkhwa. According to them, this is the fourth discovery in that area. In testing, it produced 70 million cubic feet of gas and 310 barrels of condensate daily. Over the two-day conference, Pakistani and Turkish state companies signed an agreement to work together for offshore oil and gas exploration. Under this agreement, Pakistan's Mari Energies, OGDCL, and PPL will work with Turkey's state company to explore the sea areas. Officials say these resources stayed untapped because of administrative problems, security issues, and lack of focus by political leaders. However, last week, the government once again promised to use these resources to boost Pakistan's economy. The 'Minerals Conference' in Islamabad saw participation from over twenty countries, including the US, China, and Saudi Arabia. Investors and delegates attended to explore Pakistan's mineral sector, which the government is calling a 'trillion-dollar sector'. The aim of the conference was to present Pakistan as an important global player, especially in critical minerals. Senior government and military leaders called the conference a 'milestone' for the economy. But critics say that this is not the first time Pakistan has promised to turn 'stones into gold'. Before discussing if these promises will happen, it's important to understand what minerals Pakistan has and where they are found. Where are minerals found in Pakistan? Pakistan divides minerals into different categories. Strategic minerals include copper, gold, lithium, rare earth minerals, and chromite. These are used in electronics, defense, and green technology, making them highly valuable for security and investment. Energy minerals like coal and uranium are important for electricity and nuclear programs. Industrial minerals such as salt, limestone, gypsum, and barite are needed for construction and farming. Precious stones are small but valuable and help earn money from exports. Balochistan: The mineral hub Balochistan, though troubled, holds large and important mineral resources, because of this, it is often called 'Pakistan's mineral center'. In the 1970s, the Geological Survey of Pakistan (GSP) discovered copper and gold at Reko Diq and Saindak. Several decades ago, GSP also found signs of gold reserves in Chagai. However, the project got stuck because of legal and economic problems. Now, under Canadian company Barrick Gold's leadership, work has started again to extract minerals from the area. In late 2022, a new agreement was signed. Under it, the Balochistan government will have a 25% share, the federal government 25%, and Barrick Gold 50%. Barrick Gold promised to invest in the project and start production by the end of this decade. Officials now hope that production will start by 2028. According to local media, Saudi company Manara Minerals may also invest here. Barrick Gold's CEO, Mark Bristow, said that after the second phase of Reko Diq is complete, the site could produce 400,000 tons of copper every year. He also said the growing global need for copper, for electric vehicles, green energy, and electricity, can bring great economic benefits to Pakistan. The Saindak project, which started after copper and gold were discovered there in 1973, was Pakistan's first major mining project. It is estimated that Saindak has several hundred million tons of raw material. A Chinese company currently operates the project. Balochistan not only has copper and gold but also many other minerals. In the Muslim Bagh region of Qila Saifullah, chromite has been mined for centuries. Chromite is important for making stainless steel. Recently, claims have been made about the presence of lithium and rare earth minerals in Chagai and Khuzdar. The government considers these minerals critical for the future. In the 1960s, GSP found large reserves of barite in Khuzdar. Barite is used in oil and gas drilling. The same rock formations also have fluorite deposits near Kalat and Mastung. In Lasbela, Pakistan's first modern lead and zinc mine is located, discovered by GSP and developed with Chinese support. Coal is also found in Sore Range-Degari, Dukki, Mach, and Khost areas of Balochistan. Though these coal reserves are smaller and less powerful than those in Punjab and Sindh, they have supported local industries and railways for decades. They also provide jobs to thousands of workers. However, many local people complain that they do not get a fair share of the wealth and accuse the authorities of hiding details about the projects. These complaints have led to unrest and anger in Balochistan. Precious stones in Khyber Pakhtunkhwa At the minerals conference held last year, the government also claimed that large reserves of gas and minerals have been found in Khyber Pakhtunkhwa. Mining is expected to start soon. However, a new 'Mines and Minerals Bill' about this province created controversy. A scheduled briefing on the bill was postponed on the orders of former Prime Minister Imran Khan. Both the ruling Pakistan Tehreek-e-Insaf (PTI) and opposition parties have raised concerns about this bill. Swat, a district in Khyber Pakhtunkhwa, is famous around the world for its emeralds. These beautiful green stones are highly valued in jewelry. Even today, locals search the riverbeds to find shining emeralds.
Asia Times
24-04-2025
- Business
- Asia Times
Balochistan gold rush promises Pakistan mining boom
At the Pakistan Minerals Investment Forum 2025, Muhammad Ali Tabba, chairman of National Resources Limited (NRL) and CEO of Lucky Cement, unveiled what he claimed are hitherto unknown substantial gold and copper reserves in Balochistan's Chagai district. Announced in the company of Pakistan's Prime Minister Shehbaz Sharif and Army Chief General Muhammad Asim Munir, Tabba's claimed discovery signals a potential turning point for Pakistan's laggard mining industry at a time global gold prices are touching record highs of over US$3,400 per ounce. NRL, a wholly Pakistani-owned firm under the umbrella of Fatima Fertilizer, Liberty Mills, and Lucky Cement, obtained an exploration permit in Chagai in October 2023. Within 18 months, it claims to have pinpointed 16 mineral-rich locations across a 500-square-kilometer expanse, with drilling at the Tang Kor, Chagai site reportedly confirming significant deposits. Balochistan, Pakistan's largest province by area, is a geological treasure trove. The Chagai region lies within the Tethyan Magmatic Arc, a mineral-laden zone spanning Europe to Southeast Asia renowned for its copper and gold wealth. The nearby Reko Diq mine holds an estimated 5.9 billion tonnes of ore, grading 0.41% copper and 0.22 grams per tonne of gold, ranking it among the world's largest untapped reserves. NRL's Tang Kor website entry complements this, with early drilling showing copper concentrations from 0.23% to 0.48%, along with traces of gold and silver. Thirteen diamond drill holes totaling 3,517 meters all reportedly struck mineralized zones, underscoring the deposit's vast potential. Pakistan faces a dire economic situation with shrinking foreign currency reserves, mounting debt and import dependency, making this discovery a potential lifeline. The nation's mineral wealth, valued at $6 trillion, has been largely untapped. NRL's find, alongside developments like Reko Diq (where Barrick Gold targets 200,000 tonnes of copper and 250,000 ounces of gold yearly by 2028), could pump billions into Pakistan's economy and Balochistan's development. At the same time, the golden discovery is sparking age-old concerns about fair revenue allocation for and ecological impact on Balochistan, one of Pakistan's most undeveloped and historically restive regions. Ethnic Baloch insurgent groups frequently target resource and infrastructure investments in the province, in part on the grounds that they disproportionately serve Islamabad and its allied foreign interests, including Chinese companies, rather than local communities. NRL's partnerships with the Balochistan government and the Special Investment Facilitation Council (SIFC), plus a $100 million exploration budget for two new licenses, thus reflect a determined effort to capitalize on this opportunity. Balochistan's resource riches stand in stark contrast to its poverty. Supplying 35–45% of Pakistan's natural gas and brimming with minerals, the province still ranks lowest on basic human development metrics. Around 85% of the province's residents lack clean water, 75% have no electricity and 63% live in poverty. However, these newly discovered troves could shift Balochistan's dire narrative if handled prudently and equitably. The company's stated commitment to creating local jobs and community engagement aims, at least rhetorically, to help address these gaps. There is precedent to be doubtful about corporate vows of trickle-down. For instance, the Saindak mine, active since the 1970s, yields 15,800 tonnes of copper, 1.5 tonnes of gold and 2.8 tonnes of silver annually, yet benefits rarely reach locals. The economic potential is immense. Reko Diq could generate $70 billion in free cash flow and $90 billion in operating cash flow over decades, according to company estimates. Should NRL's deposits match this scale, their extraction could elevate GDP, create substantial well-paying jobs and fund badly needed Balochistan infrastructure. A homegrown player like NRL could keep more profits in-country, unlike past foreign-led ventures. Its agreements with the Oil and Gas Development Company (OGDC) and efforts to draw investors point to a scalable strategy. Yet, optimism must be tempered. Past projects like Saindak and Reko Diq have faced disputes over revenue splits and local neglect, with Balochistan once receiving just 2% of Saindak's earnings. For NRL's success, fair policies—guaranteeing royalties, local employment and investments in health, education and water—are essential. Frameworks like the Balochistan Development Plan and the China-Pakistan Economic Corridor (CPEC) Gwadar Port offer a blueprint but fair implementation will be critical. The economic upside, of course, comes with environmental trade-offs. Balochistan's climate, with summers hitting 53°C and winters plunging to -20°C in higher elevations, is as harsh as it is fragile. Mining demands substantial water and energy, both scarce resources in Balochistan. Saindak has faced backlash for depleting water and polluting groundwater with tailings and residues. Tang Kor's drilling and potential processing could worsen these problems, especially if NRL opts for downstream operations that could pollute rivers, hurt crops and aggravate health crises. Extracting copper and gold generates significant emissions—mining contributes 4–7% of global greenhouse gases, with copper production emitting roughly 2.5 tonnes of CO2 per tonne. At Reko Diq's scale, NRL's output could add hundreds of thousands of tonnes of emissions yearly, straining a region already hit by climate shifts like erratic rains and desertification. Dust from mining could also harm air quality and public health. Balochistan's climate is already under siege, and mining could amplify the woes. The province has seen a rise in extreme weather—floods in 2022 devastated crops and displaced thousands, while prolonged droughts have shrunk arable land. Chagai's arid ecosystem, home to sparse vegetation and rare species like the Balochistan bear, faces disruption from mining sprawl. Water-intensive operations risk drying up springs and wells, vital for nomadic herders and small farmers. Meanwhile, heavy machinery and blasting could destabilize the region's rugged terrain, increasing landslide risks in a province prone to seismic activity. Without careful and studied planning, NRL's projects could tip Balochistan's delicate environmental balance toward collapse. On the flip side, copper is vital for green tech like wind turbines and electric vehicles, potentially aiding global decarbonization. NRL's local control could enforce tougher environmental rules than foreign firms have historically followed. Solar energy or water recycling, used in some advanced mines, might mitigate the damage. The $100 million exploration fund could be deployed to support sustainability research, balancing profit with preservation. If NRL invests even a minor share donation into Balochistan's Climate Resilience Fund, it could build trust and social license among Chaghi's indigenous communities. NRL's Chagai find is a potential defining moment for Pakistan and Balochistan, but a positive and equitable outcome depends on learning from the past. The discovery could ease import reliance, shore up foreign currency reserves and lift Balochistan from poverty if substantial profits stay local. The 2025 Pakistan Minerals Investment Forum, where global eyes were suddenly fixed on Chagai, highlights the stakes. Saudi Arabia's possible 15% Reko Diq stake and Barrick's $2 billion investment suggest Pakistan's mineral wealth is prime for profitable extraction. Ultimately, NRL's gold and copper reserves are more than a geological windfall – they are crucial for Pakistan's pursuit of equitable and lasting economic progress. For Balochistan, the discovery could herald a future where riches benefit its people and environment, not just local elites or outsiders. The task ahead for Pakistan and Balochistan is to ensure this hope doesn't fade into another tale of squandered promise.
Express Tribune
08-04-2025
- Business
- Express Tribune
Gold and copper reserves found in Chagai, Balochistan
Listen to article National Resources Limited (NRL) has announced the discovery of gold and copper deposits in the Chagai district of Balochistan. The announcement was made by NRL Chairman and Lucky Cement CEO Muhammad Ali Tabba during the Pakistan Minerals Investment Forum 2025, in the presence of Prime Minister Shehbaz Sharif and Army Chief General Asim Munir. NRL is a 100% privately-owned Pakistani company, a subsidiary of Fatima Fertilizer, Liberty Mills, and Lucky Cement. It received its exploration licence in October 2023. According to Tabba, exploration across the 500 sq km licence area led to the identification of 16 potential mineral sites over the last 18 months. Advanced drilling has begun at the Tang Kore location. So far, NRL has completed 13 diamond drill holes covering 3,517 metres, all showing signs of mineralisation. Results from the first six drill holes confirmed strong mineral zones near the surface. Initial samples revealed copper content between 0.23% and 0.48%, gold ranging from 0.09 to 0.14 grams per tonne, and silver between 1.3 and 6.21 grams per tonne—equivalent to combined copper values of 0.28% to 0.56%. NRL plans to begin advanced drilling in Tang Kore in May 2025, followed by an NI 43-101 technical report by year-end. This will be followed by 3–4 years of further exploration and feasibility studies. In addition to copper-gold exploration, NRL has secured a lead-zinc licence adjacent to an existing mine with a completed bankable feasibility study. The company is also conducting a metal value chain study to assess downstream processing opportunities. NRL emphasised its commitment to the local community, supporting clean water, education, healthcare, and jobs. The company said more than 90% of its workforce is locally employed. NRL is working with the Balochistan government and the Special Investment Facilitation Council (SIFC) to secure two additional exploration licences, backed by a $100 million fund. It has also signed a memorandum of understanding with OGDC for work on newly leased areas.
