Islamabad: The government is in the final stages of finalizing the National Minerals Harmonisation Framework 2025, a key initiative aimed at attracting investment in Pakistan’s mineral sector.
All provinces, along with Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan, are set to adopt the policy by February 26, 2025. The framework will be formally unveiled at the Pakistan Critical Minerals Summit on April 9.
Boost for Mining Sector & Reko Diq Investment
Saudi Arabia has already shown interest in acquiring 15% shares in the Reko Diq copper and gold mining project, a development expected to further boost foreign investment in Pakistan’s mining sector. The framework will provide a structured policy at the domestic and national levels, encouraging international partnerships and investments.
As part of the Special Investment Facilitation Council (SIFC) initiative, the federal government has actively engaged provinces, mining companies, state-owned enterprises (SOEs), and industry associations to ensure consensus. Of the 750 issues raised, 694 have been resolved and incorporated into the framework, leading to the finalization of the harmonized Mines and Minerals Act 2025 and the National Mineral Development Policy 2025.
These will be showcased at the Pakistan Minerals Summit in April, with additional legislation, including the Mines Safety and Health Act 2025, expected to be implemented by June 2025.
Curbing Illegal Mining & Strengthening Laws
Chief ministers and the AJK prime minister have been directed to curb illegal mineral mining and ensure that foreign companies are not granted leases for raw material extraction and export, a provision now enshrined in the Mines and Minerals Act 2025.
Additionally, they will identify policies impacting foreign direct investment (FDI) and work with the Ministry of Law and Justice to harmonize regulations through the Council of Common Interests (CCI), facilitating investors and improving the ease of doing business.
$1.9 Billion Funding Plan for Reko Diq
Pakistan has outlined a $1.9 billion funding plan for the Reko Diq mining project, with total project costs estimated at $4.297 billion. State-owned enterprises will contribute $1.194 billion, while the Balochistan government’s share will amount to $717 million, funded by the federal government.
To secure financing, Pakistan’s government will provide guarantees for Balochistan’s share, subject to approval by the Economic Coordination Committee (ECC).
The project, now under a joint venture with Barrick Gold Corporation, Pakistan Petroleum, OGDCL, and Government Holdings (Pvt) Limited, was restructured following a settlement with Tethyan Copper Company, Australia (TCCA), after international arbitration rulings.
The finalization of the National Minerals Harmonisation Framework 2025 is expected to unlock Pakistan’s vast mineral potential, ensuring a structured and investor-friendly approach to the mining industry.
Story by
Zafar Bhutta
