THE mineral sector has been one of the significant sources of economic development of a number of developed countries and Pakistan, which is gifted with so many precious mineral deposits, can get huge economic benefits if the same are properly managed and utilized. Contribution of the mineral sector is multifarious; trade promotion, facilitation in natural resource exploitation, improve per capita income, increase employment, expand communication base for economic activities, enhance income level, accelerate economic growth. Several developed countries have been exploiting their original mineral resources by using them as intermediate goods and finished products. A number of countries are importing minerals from other countries, refining, value addition and then exporting. Pakistan is endowed with huge reserves of minerals covering an outcrop area of 600,000 sq. Kms. There are 92 known minerals of which 52 are commercially-exploited with a total production of 68.52 million metric tons per year. The sector is a promising one with an average growth of 2-3% per annum, existence of above 5,000 operational mines, 50,000 SMEs and direct employment of around 400,000 workers.
We have an abundance of minerals and gemstones including deposits of emerald and ruby etc. The country has the world’s second largest salt mines and fifth largest copper and gold reserves, and second largest coal deposits, as well as estimated billions of barrels of crude oil. Despite its huge potential, the contribution of the mineral sector to Pakistan’s GDP is around 3.2 % and the country’s exports are only about 0.1% of the world’s total. Several critical gaps undermine the exploitation and marketing of minerals in Pakistan. The regulatory framework is inconsistent, with misalignment between national mineral policies and provincial mining laws, leading to procedural delays and creating barriers for investors, particularly from abroad. The sector suffers from inadequate infrastructure, including insufficient mine access roads, poor road networks, lack of utilities, and underdeveloped industrial zones, all contributing to low investment and suboptimal growth. Additionally, outdated technology in quarrying and processing hinders the production of standardized, high-quality products. Quarry wastage in Pakistan is excessively high at 75%, compared to the international standard of up to 45%.
Human resources in the mining and processing sectors exhibit low productivity due to a shortage of qualified and trained workers. There is no dedicated training institute for quality education in mineral extraction and processing, which limits the potential for finished products that could yield up to 300% more profits. Investment opportunities exist in various areas, including estimation, exploration, production, washing, finishing, value addition, technological advancement, and marketing. Key minerals for production and marketing improvements include dimension stones, copper, gold, chromite, iron ore, gypsum, gemstones, and coal. Strategic interventions are needed to fully capitalize on the mineral sector’s potential. The intervention includes regulatory framework improvement and transparency, proper check and balance on the minerals and resource management cycles, resource mapping, infrastructure development, technological upgradation, access to finance, human resource development, exploration of international markets, establishment of one window support mechanism for international buyers and tagging mechanism of mineral extraction and exports.
Estimation and mapping of mineral reserves and deposits using modern scientific methods such as geo modelling and 3D modelling, in consultation and partnership with PCSIR, GSP etc. may be done. Development of Mine Access roads for the existing and potential mineral rich areas by the Provincial Government with the lead role of Directorate of Mine and Minerals, may be done by the provincial – federal government. Technology Up-gradation may be done through, short term, medium term and long term intervention for individuals, businesses and clusters by: (i) Establishment of Machinery Pools, (ii) Common Facility centers, (iii) Training Centres, (iv) Modern Stock Yards/Warehouses to improve productivity, product quality and competitiveness.
Technology upgradation can be achieved through short, medium, and long-term interventions for individuals, businesses, and clusters. This includes establishing Machinery Pools, Common Facility Centres, Training Centres, and Modern Warehouses with proper asset management and tagging systems to enhance productivity, product quality, and competitiveness. A marketing strategy should be developed to leverage domestic and international demand, focusing on domestic promotion and facilitating investor participation in international expos. Display and export facilitation centres, along with improved online portals and feedback mechanisms using AI and IT technology, can enhance the role of Pakistan expatriates and international buyers. Access to Financing for local firms may be enhanced by introduction of new financial products with proper mine collateralization mechanisms to cater with financial requirements of the sector by State Bank of Pakistan. These may include; financing against products, equity participation funds, credit guarantee schemes, cash flow based financing, loans for acquiring new machinery and loans on low interest rates to provide support to keep the price of our products competitive in the international markets.
Human Resource Development may be done through establishment of improved and dedicated training facilities at major mineral bearing areas with state of the art machinery and training facilities. Besides this, training courses in modern quarrying and processing may be introduced in existing TVET institutes through proper regulation to cater for skill requirements of the sector. Organizations such as PASDEC, PJGDC, TEVTA, TUSDEC and NAVTTC may be tasked along with some international technical workshops that may be arranged for potential investors. To conclude, the mines and minerals of Pakistan can become a potential revenue stream for Pakistan if the same are managed in a proper way. Development and growth of the mineral sector in Pakistan require well-coordinated efforts and efficient utilization of resources. The proposed interventions are recommended to be implemented in close coordination by all stakeholders involved. Furthermore, implementation of the outlined interventions should be subject to the domain of each implementing partner.
—The writer is a philanthropist, administrative/project management professional, reformist and founder of Marwat Tarburaans, a community of educated and professional Marwats.
