Latest news with #PakistanMineralsInvestmentForum
Express Tribune
20-04-2025
- Business
- Express Tribune
Minerals: a strategic tug of war
Listen to article Pakistan's mineral sector has become a growing focal point for the United States, especially following the recent global event, the Pakistan Minerals Investment Forum (PMIF25), held in Islamabad. The forum, attended by key stakeholders from both the public and private sectors, highlighted the vast opportunities presented by Pakistan's untapped mineral resources. With significant reserves of copper, gold, rare earth minerals, and more, Pakistan is positioning itself as a promising investment destination for global players – particularly the United States. The forum underscored the increasing interest in Pakistan's mineral sector, driven by the global demand for critical resources used in high-tech industries. Notably, rare earth minerals are in high demand for electronics, renewable energy technologies, and electric vehicles. The US has recognised Pakistan's potential as a key supplier of these minerals, which are vital to its industrial ecosystem. As the global race to secure stable supply chains intensifies, Pakistan's vast reserves offer a unique opportunity for the US to diversify its mineral sources and reduce dependency on other countries, especially China. Beyond rare minerals, Pakistan's deposits of copper and gold are equally valuable. These resources are essential for industries ranging from construction to electronics and are expected to remain in high demand. The US's growing interest in these minerals is rooted in its need to secure access to materials critical for long-term industrial resilience. With rising global consumption, US companies are keen to invest in Pakistan's mining industry, which offers long-term economic potential. At the forum, it became clear that US engagement in Pakistan's mining sector is not limited to resource extraction. There is a strong emphasis on technology transfer and capacity building. American companies bring with them advanced mining technologies and sustainable practices that could modernise Pakistan's mining operations. By introducing efficient and environmentally friendly methods, the US can help Pakistan enhance its mineral output while reducing the environmental footprint. Sustainability was a key theme at the forum, especially as concerns about climate change and environmental degradation grow. With their expertise in clean technologies, US firms are in a position to help Pakistan transition to more sustainable mining practices. These could include minimising waste, lowering emissions, and implementing advanced recovery techniques that reduce ecological damage while maximising economic returns. However, while the strategic and economic advantages of US involvement are apparent, it is crucial not to overlook the role of traditional local miners. Pakistan's mining industry has long depended on artisanal miners who have been instrumental in resource extraction. Without their inclusion in broader economic opportunities, these miners risk displacement as large-scale, tech-driven operations take over. The government must ensure that any foreign partnership includes provisions for local miner involvement. While some foreign firms may resist such conditions, including local workers can help foster skills development, create jobs, and preserve the social fabric of mining communities. This inclusion is also vital to ensuring broader economic benefits across the country. Training and empowering traditional miners could create thousands of jobs, strengthen local economies, and reduce poverty. Moreover, community engagement is essential to securing buy-in for large-scale mining projects, mitigating the risk of social unrest, and promoting shared prosperity. Additionally, if the US is seeking a sovereign-level agreement for mineral access, it indicates a desire for a direct, exclusive arrangement with the Pakistani government. From Islamabad's perspective, this places the country in a delicate geopolitical position. Saudi Arabia, for instance, has already shown serious investment interest. Given the historical and strategic relationship between our two countries, any side-lining of Riyadh could send an unintended diplomatic signal. Saudi Arabia has consistently provided financial support, and alienating such a longstanding partner would be short-sighted. Then there's China – Pakistan's all-weather friend, an important investor and partner through the China-Pakistan Economic Corridor. Any perceived shift towards Washington, especially in mineral-rich areas where Chinese interests are already active, could cause discomfort in Beijing. The overlap of strategic and commercial interests requires a nuanced approach. For Pakistan, the smart play is to keep all doors open. Investment is essential, but not at the cost of alienating traditional allies or undermining long-term strategic relationships. Balance is everything. The forum also called attention to the need for regulatory reform and infrastructure development. While Pakistan's mineral wealth is undeniable, a lack of modern infrastructure, energy supply, and clear regulations continues to deter investors. These challenges must be addressed to unlock the mining sector's full potential. The US, with its expertise in infrastructure development, could play a meaningful role in helping Pakistan modernise its regulatory framework and physical logistics. Security remains another key concern, especially across mineral-rich provinces like Balochistan. For any investment to succeed, the government must guarantee safety, equitable resource sharing, and transparency. A stable environment is crucial to attracting and retaining both foreign and local investors. Finally, a word of caution: the US has a complicated legacy in mineral-rich regions. History offers examples from Africa to Afghanistan, where foreign interest in natural resources led to conflict, instability, and weakened state control. The term "conflict minerals" did not emerge in a vacuum. For Pakistan, this is a lesson worth remembering. Granting any single power too much control or exclusive access risks compromising national sovereignty and increasing foreign interference. Pakistan must craft a mineral policy that promotes strategic autonomy, not dependency. As global demand for minerals like rare earths, copper, and gold continues to surge, Pakistan's untapped resources represent a major economic opportunity. If managed wisely – through inclusive partnerships, strategic diplomacy, and sustainable development – this sector could power a new phase of national growth. For the US, securing access to these materials strengthens its supply chain. THE WRITER IS A STAFF CORRESPONDENT
Express Tribune
14-04-2025
- Business
- Express Tribune
FinMin stresses export, investment-led growth
Federal Minister for Finance Muhammad Aurangzeb has said that though the government has achieved macroeconomic stability, it must be viewed as a foundation rather than a final destination. "The objective is not to pursue rapid and unsustainable expansion, but to ensure that the economy grows on a durable, investment-led and export-oriented basis," he said while chairing a high-level meeting on priority sector lending, according to a statement issued on Monday. Senior officials from the State Bank of Pakistan, the Pakistan Banks Association (PBA) and the representatives from leading banks attended the huddle. The session focused on aligning the financial sector and its lending to priority sectors with the government's agenda of driving an export-led economic revival and future growth. The minister cautioned against the temptation of short-term gains and underscored the need to avoid the cyclical boom-and-bust patterns that had historically hindered economic progress. He emphasised the critical role of banks in supporting and catalysing export-oriented growth, stating that the government was fully committed to this strategic direction and actively facilitating foreign direct investment, which would create exportable surplus in key sectors. The minister underlined the importance of recent investor engagement, particularly the successful Pakistan Minerals Investment Forum that demonstrated the strong interest of domestic investors in high-value projects. He noted that such developments sent a positive signal to international stakeholders and built investor confidence in Pakistan's economic trajectory. A notable example shared was the commitment by Maersk, a major global container shipping company, to investing $2 billion in Pakistan's maritime and port infrastructure. This reflects the growing regional importance of trade corridors and the emerging realities of real market dynamics. The minister reiterated the role of banking and financial sectors in unlocking and expanding such strategic opportunities, especially in logistics, trade facilitation and industrial support.
Express Tribune
12-04-2025
- Business
- Express Tribune
PSX sheds nearly 4,000 points
Shares of 366 companies were traded. At the end of the day, 182 stocks closed higher. PHOTO: AFP/FILE Listen to article Pakistan Stock Exchange (PSX) faced extreme volatility during the outgoing week, when the KSE-100 index suffered a historic intra-day drop of 8,688 points (-7.3%) on Monday amid global trade war fears. The slump followed the imposition of US reciprocal tariffs on 60 countries and a fall in crude oil to $57.04 a barrel. Some recovery came later as President Trump paused tariffs for 90 days while local investors also found support from the Pakistan Minerals Investment Forum. The index lost nearly 4,000 points compared to the previous week. On a day-on-day basis, the KSE-100 index faced a bloodbath on Monday, with the PSX mirroring escalating international trade tensions and fears of a global recession. As Trump refused to back down from his tariff plans, retaliatory moves from China triggered fears of a broader trade war, causing markets to plunge around the world. At the close of trading, the benchmark KSE-100 index posted a decline of 3,882 points and settled at 114,909. The following day, the PSX staged a robust recovery as the index hit the intra-day high of 116,692, up 1,783 points. At the end of trading, the KSE-100 recorded an increase of 623 points at 115,532. Following Tuesday's recovery, stocks struggled again on Wednesday, weighed down by concerns over escalating US tariffs and a global market slump. The index posted a substantial drop of 1,379 points and closed at 114,153. On Thursday, Pakistan's stock market made a strong comeback, helping the KSE-100 surge over 2,000 points after the United States unexpectedly announced a 90-day pause to several new tariffs. At close, the index exhibited an impressive gain of 2,036 points at 116,189. PSX on Friday wrapped up another turbulent week in negative territory as mounting global economic uncertainties and the intensifying US-China trade tensions dampened investor confidence. The benchmark index posted a decline of 1,336 points and settled at 114,853. Arif Habib Limited (AHL) wrote in its review that the PSX endured a volatile week, during which the KSE-100 index registered a record intra-day drop of 8,688 points (-7.3%) on Monday amid global panic over reciprocal tariffs on 60 countries, which particularly impacted China. Crude oil fell to $57.04 per barrel, its lowest since February 2021. Market sentiment improved mid-week after President Trump paused tariffs above 10% for 90 days. Locally, investor optimism was supported by the Pakistan Minerals Investment Forum, which attracted interest from global investors. A major mineral discovery in Balochistan and Mari's significant gas find at Spinwam further lifted sentiment. Despite that, the KSE-100 closed down 3,988 points, -3.3% week-on-week (WoW), at 114,853, AHL said. Bank, fertiliser and exploration & production (E&P) sectors led the decline while cement and pharmaceutical firms showed resilience. Foreigners turned net sellers of $9.9 million worth of shares, mainly in banks, with local mutual funds also offloading $13.6 million. Average volumes rose 14% WoW to 557 million shares while traded value went up 8% to $123 million. Among major economic news, AHL pointed out, the State Bank of Pakistan's foreign exchange reserves rose $23 million on a weekly basis, reaching $10.7 billion. Meanwhile, the country's oil reserves saw a notable 23% increase due to new field additions, signalling a positive development for the energy sector. In a significant move for regional energy cooperation, a Pakistani consortium is set to commence production in Adnoc's offshore block-5 by 2027. In the upstream sector, Pakistan Petroleum Limited (PPL) began gas production from the Pateji X-1 Upper Sand reservoir. Additionally, Mughal Energy is preparing to launch its coal power unit following a boiler test scheduled for June. On the fiscal front, the government successfully raised Rs427 billion through a Pakistan Investment Bonds' (PIB) auction, AHL added. Wadee Zaman of JS Global commented that the KSE-100 index experienced heightened volatility during the outgoing week, ultimately closing down over 3,900 points at 114,853. The week opened with a sharp sell-off, driven by fears of a global trade war, triggered by tariff announcements by the US president. However, news of a 90-day pause in tariff implementation provided some relief to investors on Thursday. Meanwhile, he said, Pakistan hosted the Pakistan Minerals Investment Forum, aimed at highlighting the country's mineral potential, with participation from major international partners. On the economic front, the Ministry of Commerce estimated a potential loss of $1 billion due to the 29% tariff imposed on Pakistan under Trump's policy. Additionally, the Asian Development Bank revised Pakistan's GDP growth forecast down to 2.5% for FY25, Zaman added.
Yahoo
10-04-2025
- Business
- Yahoo
Reko Diq JV approves updated feasibility study and appoints Fluor for EPCM
Canadian miner Barrick Gold has announced that shareholders in the Reko Diq joint venture (JV) in Pakistan have approved an updated feasibility study for the Reko Diq copper-gold project and conditionally approved its related phase one development capital. This approval is contingent on securing up to $3bn (C$4.26bn) in limited recourse project financing, paving the way for major works to commence in 2025. The Reko Diq project is 50% owned by Barrick Gold, 25% by three federal state-owned enterprises and 25% by the Government of Balochistan. Operated by Barrick, the project is located in the Balochistan Province of Pakistan and considered to be one of the world's largest untapped copper-gold resources. Barrick president and CEO Mark Bristow highlighted this milestone during the Pakistan Minerals Investment Forum in Islamabad, noting strong support from the governments of Balochistan and Pakistan. The Reko Diq project remains on track for first production by the end of 2028. Additionally, Fluor has been chosen as the lead engineering, procurement and construction management (EPCM) partner for the project. The company will collaborate closely with the Barrick Owner's Team on the detailed design and construction phases. Bristow said: 'The selection of Fluor as our EPCM partner strengthens our ability to execute the Reko Diq project with the technical rigor, operational discipline and socio-environmental responsibility that are hallmarks of both companies. 'We look forward to working closely with Fluor to ensure that Reko Diq delivers lasting value to all our stakeholders, particularly the people of Balochistan and Pakistan.' Fluor's involvement will be bolstered by a consortium of engineering consultancies including Knight Piesold, PRDW and Vecturis, which have contributed to the feasibility study. Metso, Weir and Komatsu have also been selected as key partners, supplying the majority of the processing and mining equipment necessary for the project. Weir secured a $68.94m contract to supply energy-efficient solutions to the Reko Diq project in August 2024. Bristow said: 'These engineering and supply partnerships bring extensive global experience in delivering large copper concentrate projects in challenging jurisdictions, including high-altitude, remote and logistically complex environments. This expertise aligns strongly with Barrick's own track record of successfully developing and operating major projects in challenging jurisdictions around the world.' Earlier this month, Capital signed a material mining services contract for the Reko Diq project. "Reko Diq JV approves updated feasibility study and appoints Fluor for EPCM" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Express Tribune
10-04-2025
- Business
- Express Tribune
US eyes Pakistan's critical mineral potential
Prime Minister Shehbaz Sharif meets with a US delegation led by Eric Meyer, Senior Bureau Official for the Bureau of South and Central Asian Affairs at the State Department, in the federal capital. PHOTO: PPI A senior Trump administration official on Wednesday said Pakistan's "vast mineral potential" can benefit the United States as he highlighted that President Donald Trump declared securing the diverse and reliable sources of critical minerals as a strategic priority. Eric Meyer, Senior Official for the Department of State's Bureau of South and Central Asian Affairs, concluded his two-day visit to Islamabad. A statement issued by the US embassy said the US delegation visit was meant to advance US interests in Pakistan's critical minerals sector, expand opportunities for US businesses in Pakistan, deepen economic ties between the two countries, and underscore the vital importance of continued collaboration on counterterrorism. On the margins of the Pakistan Minerals Investment Forum, Mr Meyer highlighted support for investment in Pakistan's minerals sector. "Critical minerals are the raw materials necessary for our most advanced technologies," Senior Bureau Official Meyer said. "President Trump has made it clear that securing diverse and reliable sources of these materials is a strategic priority. Pakistan's vast mineral potentialif responsibly and transparently developedcan benefit both our countries," he was quoted as saying by the US Embassy. It said the United States continues to work with international partners and Pakistani stakeholders to explore opportunities for investment, technical collaboration, and responsible resource management in the minerals sector. Meyer also met with senior Pakistani officials, including Prime Minister Sharif, Chief of Army Staff Munir, Minister of Interior Naqvi, and Minister of Petroleum Malik, to expand opportunities for American businesses in Pakistan, promote the deepening of economic ties between our two countries, and underscore the vital importance of continued collaboration on counterterrorism. During his visit, Meyer appreciated the opportunity to meet with Pakistani foreign policy thought leaders, members of the American chambers of commerce, and public diplomacy program alumni to strengthen the close and enduring people-to-people ties between our two countries. A separate statement released by the PM Office said Prime Minister Muhammad Shehbaz Sharif met with a U.S. delegation led by Mr. Meyer, Senior Bureau Official and Acting Assistant Secretary, Bureau of South and Central Asian Affairs, U.S. Department of State, in Islamabad. The Prime Minister welcomed US participation in the forum. He emphasized that Pakistan's mineral sector has vast potential, and American companies should take advantage of investment opportunities in this priority area. Highlighting the importance of Pakistan-U.S. relations in the context of bilateral ties and regional peace and security, the Prime Minister expressed Pakistan's desire to work with President Trump and his administration to further strengthen bilateral relations. The Prime Minister also stressed the importance of enhancing cooperation in areas of mutual interest, including trade and investment, as well as counterterrorism. The US official congratulated Pakistan on the successful organization of the Pakistan Minerals Investment Forum. He acknowledged the vast potential of Pakistan's mineral sector and conveyed the interest of American companies in investing in this field. He also expressed the U.S. desire to work with Pakistan on matters of mutual interest and reiterated that the United States is keen to further strengthen bilateral relations with Pakistan. Meanwhile, the US delegation headed by Eric Meyer, Senior Bureau Official for the Bureau of South and Central Asian Affairs, called on General Syed Asim Munir, NI (M), Chief of Army Staff (COAS), at General Headquarters. Meeting came in the backdrop of Pakistan's Mineral Investment Forum. Appreciating the first-of-its-kind Forum, the delegation expressed confidence in Pakistan's policy to develop vast untapped mineral wealth through mutually beneficial partnerships. Commenting on the US Administration's priorities where collaboration in mineral development with Pakistan is a core area of mutual interest, Mr. Meyer also expressed interest in Pakistan's steadily improving investment landscape. The meeting also afforded an opportunity to both sides for sharing perspective on global developments and Pakistan's regional security imperatives. Both sides expressed confidence on the positive trajectory of bilateral relations and agreed on the need to explore B2B avenues in addition to expanding existing G2G and P2P cooperation for comprehensively strengthening the relationship.
