Zahid Maqsood Sheikh
With vast untapped mineral resources and one of the world’s largest agricultural bases, Pakistan stands at a pivotal moment. Can the country seize this opportunity to transform its economy and emerge as a regional leader in mining and agriculture through CPEC 2.0? This article explores how CPEC 2.0 aims to harness the immense potential of these sectors, offering new pathways for economic growth, job creation and sustainability.
Pakistan’s mineral wealth is often overlooked, yet the country is home to some of the world’s richest deposits, particularly in regions like Balochistan, which are rich in copper, gold, coal and chromite. These resources have long remained underutilized due to infrastructure gaps, outdated technologies and limited investment. With the development of CPEC 2.0, Pakistan is finally poised to unlock the full potential of its mining sector.
Key projects like the Saindak Copper-Gold Project and the Reko Diq Copper-Gold Project are at the forefront of this transformation. These ventures have the potential to significantly increase Pakistan’s mining output, providing an opportunity to create jobs, stimulate local economies and boost national revenue. A crucial aspect of this development is the creation of the “Mining Corridor,” which will link the mineral-rich areas of Chagai to Gwadar Port, providing direct access to international markets.
The government has also introduced the National Minerals Harmonization Framework 2025, a groundbreaking initiative that will standardize mining laws across the country. This framework includes a digital “one-window” portal designed to attract foreign investment and improve the ease of doing business in Pakistan’s mining sector. A key policy shift under CPEC 2.0 bans the export of raw minerals by foreign companies, requiring them to process these minerals locally in Mineral Processing Zones (MPZs). This ensures that value addition happens within Pakistan, stimulating local industries and creating jobs in sectors like metal refining, wire production and more.
China’s involvement in this sector is crucial. The country’s expertise in mining technology and its investment will help modernize Pakistan’s mining practices, increasing efficiency and unlocking higher output. With better infrastructure and technology, Pakistan can expect a rise in mineral exports, diversifying its export base and strengthening its position in the global market.
While mining holds great potential, agriculture remains the backbone of Pakistan’s economy. The agricultural sector employs a significant portion of the population and contributes substantially to the country’s GDP. However, Pakistan’s agriculture faces challenges such as outdated farming methods, underutilized land and severe water scarcity. CPEC 2.0 is set to address these issues by bringing in technological advancements, investments and better infrastructure.
A major initiative under CPEC 2.0 is the establishment of Agro-based Special Economic Zones (SEZs). These zones will focus on food processing, fertilizer production and agricultural machinery manufacturing. With these zones in place, Pakistan’s agricultural sector will have the infrastructure it needs to thrive, enabling the export of value-added products and enhancing the competitiveness of Pakistani agriculture in global markets.
Pakistan has significant untapped agricultural potential and CPEC 2.0 aims to unlock this through modern farming techniques. High-yield, pest-resistant crops, smart farming methods and efficient irrigation systems will boost productivity. Advanced techniques can help Pakistan close its wheat productivity gap, while China’s hybrid rice technology may increase rice yields and data-driven smart farming could double maize output. Water scarcity remains a challenge due to inefficient flood irrigation. CPEC 2.0 addresses this with advanced water management, including drip irrigation and dam construction, ensuring optimal irrigation, conserving water, boosting yields and promoting sustainability.
Several countries have successfully leveraged their mineral and agricultural sectors to drive economic growth, providing a clear path for Pakistan to follow. Australia, for example, has transformed its economy through mining, particularly in iron ore and coal. By modernizing its mining practices and focusing on value addition, Australia has become one of the world’s largest exporters of minerals, contributing significantly to job creation and national revenue. This success is largely attributed to strategic investments in infrastructure and advanced mining technologies, similar to those being introduced in CPEC 2.0.
Another notable example is Chile, which has successfully capitalized on its copper reserves. By developing a robust mining infrastructure and attracting foreign investment, Chile has become the world’s top copper exporter, significantly boosting its national income and employment. This mirrors Pakistan’s potential to unlock similar value from its mineral resources.
In agriculture, Brazil has demonstrated how modernization can drive growth. The country’s investment in advanced farming techniques, including precision agriculture and sustainable practices, has enabled it to become one of the largest exporters of soybeans, sugar and coffee. Brazil’s agricultural growth is a result of strategic policies, including the development of Agro-based SEZs, similar to those planned in Pakistan under CPEC 2.0.
The expected outcomes of CPEC 2.0 in mining and agriculture are transformative. The mining sector, with its new infrastructure and modernized practices, will increase Pakistan’s mineral exports and diversify its export base. This will help create thousands of jobs, stimulate local economies and drive national growth. The agricultural sector will also see significant benefits. Technological innovations and investment in infrastructure will lead to higher crop yields, better-quality produce and a significant increase in exports of value-added agricultural products.
CPEC 2.0 offers an unprecedented opportunity to modernize both Pakistan’s mining and agricultural sectors, turning them into key engines of economic growth. With the right infrastructure, technological investments and a focus on inclusivity, these sectors can drive the country’s economic future. The mining sector will become more competitive globally, while the agricultural sector will reach its full potential, providing a reliable source of food and income for Pakistan’s growing population.
The successful implementation of CPEC 2.0 will help Pakistan reclaim its position as a regional economic powerhouse. With mining and agriculture at the heart of this transformation, Pakistan can reduce its reliance on imports, create millions of jobs and move towards becoming a one-trillion-dollar economy. By prioritizing sustainability, inclusivity and modern technologies, CPEC 2.0 can lead Pakistan to a prosperous and self-sufficient future.
The writer is a former technocrat, writing regularly on national issues including economic, social and industrial reforms.
