Pakistan is endowed with abundant natural resources, including about 910 km-long coastal belt, strategic ports, four distinct seasons, diverse fruits and crops, some of the world’s highest peaks, and a breathtaking landscape.
It boasts captivating beaches, religious heritage sites and highly valuable mineral and metal deposits.
However, a significant portion of these resources remains untapped, and those that are utilized are largely exported in raw form, limiting their economic impact.
In fact we are wealthy poor nation due to bad governance.
A robust infrastructure is fundamental to unlocking the full potential of Pakistan’s mining and mineral sector.
Despite possessing an estimated $5 trillion worth of untapped mineral wealth, the industry contributes a mere 2.5% to the national GDP, with an annual growth rate of just 3.04%, according to the Pakistan Bureau of Statistics.
To optimize economic returns and reduce reliance on raw material exports, strategic infrastructure enhancements are imperative, including mineral processing facilities, regulatory reforms, logistical development, and digital transformation.
Pakistan’s mining sector remains underdeveloped due to its predominant reliance on raw mineral exports, leading to substantial revenue losses.
According to the Trade Development Authority of Pakistan (TDAP), 90% of the country’s gemstones are exported in unprocessed form, resulting in a forfeiture of nearly 70% of potential earnings.
Establishing modern processing units with advanced refining and smelting facilities is critical for maximizing resource utilization.
Investment in precision machinery for gemstones, marble and granite will significantly enhance export competitiveness, with the marble and granite industry already contributing approximately $3 billion annually.
Global partnerships should be pursued to introduce advanced mineral refinement techniques, and policies must be implemented to discourage raw mineral exports while promoting finished and semi-finished products.
The State Bank of Pakistan reports that refined minerals generate up to five times more revenue than raw exports.
The adoption of digital tools can revolutionize operations and enhance transparency in the mining sector.
Advanced digital geological surveys will facilitate more accurate resource identification, as the Geological Survey of Pakistan (GSP) estimates that over 600,000 square kilometers of mineral-rich land remain unexplored.
Implementing a blockchain-based tracking system will ensure compliance with international trade standards and mitigate illegal mining practices.
Moreover, licensing, taxation, and regulatory compliance should be digitized for seamless governance, accompanied by robust cybersecurity frameworks to safeguard business and financial data.
Bureaucratic inefficiencies continue to deter investment in Pakistan’s mining sector, necessitating regulatory streamlining to boost investor confidence.
A centralized hub for approvals, including environmental clearances and trade licenses, should be introduced to facilitate ease of doing business.
Policies ensuring stable taxation and mineral rights security will further attract investment.
Tax incentives for local processing plants should be implemented to discourage raw mineral exports.
Lengthy approval processes currently contribute to a 30% reduction in annual mining activity, highlighting the urgent need for an efficient, time-bound approval system.
Efficient logistics and transport networks are essential for maximizing sectoral output.
Developing dedicated transport corridors linking mines to processing hubs and export terminals is crucial.
Currently, inadequate transportation infrastructure causes logistical delays for 40% of mined materials, necessitating urgent upgrades to road and rail networks.
Ports such as Gwadar and Karachi must be equipped to handle processed mineral exports efficiently, while strategic storage hubs near mining zones will enhance supply chain efficiency.
A well-informed business community is key to industry growth.
Establishing centralized online platforms to provide real-time updates on market trends, trade policies, and investment opportunities will be instrumental.
Despite employing over 300,000 workers, only 10% receive formal training, underscoring the need for comprehensive skill development programs.
Strengthening industry-academia collaboration will drive innovation, while targeted financial and technical assistance will promote inclusivity by supporting women and minority entrepreneurs.
Sustainable energy solutions are imperative for industrial expansion.
Solar and wind energy should be harnessed to power mining and processing operations.
Power shortages currently contribute to a 25% loss in mining output annually, necessitating an upgraded grid infrastructure to support mineral refinement.
Affordable energy pricing incentives for value-added mineral processing will enhance profitability, while sustainable water management policies and advanced waste treatment solutions must be integrated into mining operations to ensure environmental sustainability.
Dedicated Special Economic Zones (SEZs) can drive industrialization and attract foreign investment in the minerals sector.
Establishing SEZs with preferential policies and state-of-the-art infrastructure will create an enabling environment for growth.
Duty-free imports of machinery and tax exemptions will further incentivize investors.
Leveraging the China-Pakistan Economic Corridor (CPEC) can bolster mineral trade and infrastructure development.
Pakistan is home to a vast array of gemstones and minerals that contribute significantly to global supply chains.
The country’s precious stones include emeralds from Swat Valley, rubies from Hunza and Azad Kashmir, sapphires from Neelum Valley, and topaz from Katlang, Mardan.
Semi-precious stones such as aquamarine from Gilgit-Baltistan, tourmaline from Skardu and Gilgit, Peridot from Kohistan, garnet from Chitral and Skardu, zircon from Mansehra, quartz from Chitral and Balochistan, and amethyst from Sindh and Balochistan hold considerable economic value.
Other key mineral deposits include gold and copper from RekoDiq and Saindak, iron ore from Chiniot and Kalabagh, chromite from Muslim Bagh and Kharan, gypsum from Dera Ghazi Khan, limestone from Punjab and Khyber Pakhtunkhwa, coal from Thar and Lakhra, bauxite from Khushab, fluorite from Balochistan, and rock salt from Khewra and Warcha.
Pakistan’s mining and minerals industry holds immense economic potential, but underdeveloped infrastructure continues to impede progress.
Implementing targeted reforms—ranging from modern processing facilities and digital transformation to enhanced logistics and regulatory frameworks—can position the sector as a key driver of national economic growth.
A collaborative approach involving the government, private sector, and international stakeholders is essential to fully harnessing Pakistan’s vast mineral wealth.
The writer is Secretary General, Islamabad Chamber of Commerce & Industry.
