Pakistan is endowed with vast mineral resources that hold immense potential for economic growth and industrial development. With abundant reserves of coal, copper, gold, iron ore, chromite, and precious stones, the country’s mining sector has the capacity to become a significant contributor to national progress. However, despite its rich mineral landscape, the sector currently contributes only 3.2% to Pakistan’s GDP, with mineral exports accounting for a mere 0.1% of the global total.
With increased exploration, foreign investment, and infrastructure development, Pakistan’s mining industry is poised for substantial growth. Spanning approximately 600,000 square kilometers, the country’s mineral-rich terrain contains 92 known minerals, 52 of which are commercially exploited. Annually, Pakistan produces an estimated 68.52 million metric tons of minerals, sustaining over 5,000 operational mines and 50,000 small and medium enterprises (SMEs) while directly employing 300,000 workers.
Among Pakistan’s most significant mineral assets are the world’s second-largest salt mines, the fifth-largest copper and gold deposits, and extensive coal reserves. Additionally, the country possesses significant quantities of bauxite, gypsum, and precious stones such as ruby, topaz, and emerald, offering immense export potential.
Globally, mineral resources serve as a cornerstone for economic advancement. Countries like China, Italy, Turkey, Spain, and Brazil have effectively harnessed their mineral wealth to drive industrialization, increase employment, and enhance per capita income. Pakistan can follow suit by strategically investing in mineral exploration, refining processes, and infrastructure development to maximize the sector’s potential.
The Role of Foreign Investment in Mining Expansion
Pakistan’s mining sector is attracting significant foreign interest, particularly in its untapped reserves. A prime example is the Reko Diq copper and gold project in Balochistan’s Chagai district, one of the world’s largest untapped copper reserves. Revived by Canada’s Barrick Gold, the project is set to begin production by 2028 with an initial investment of $5.5 billion.
According to Mark Bristow, CEO of Barrick Gold, which holds a 50% stake in Reko Diq, the mine is expected to generate approximately $74 billion in free cash flow over the next 37 years. With an annual export value of $2.8 billion, the project will create thousands of jobs and significantly impact the local economy. Future expansion plans include increasing copper production to 400,000 tonnes and gold output to 500,000 ounces annually, requiring an additional $3.5 billion investment.
In a landmark deal, the federal cabinet has approved the sale of a 15% stake in Reko Diq to Saudi Arabia, further cementing Pakistan’s mining sector as a magnet for foreign investment. Saudi-based Manara Minerals is set to acquire this stake, potentially injecting $1 billion into the project.
Infrastructure Development: A Catalyst for Mining Growth
Infrastructure development is key to unlocking Pakistan’s mining potential. The China-Pakistan Economic Corridor (CPEC) is playing a transformative role in improving transportation and export logistics for minerals. Enhanced connectivity via Gwadar Port, Port Qasim, and upgraded road and rail networks will facilitate smoother mineral transportation from extraction sites to industrial hubs.
For Reko Diq, logistical operations will be managed through a railway network in collaboration with Pakistan Railways. This initiative will ensure the efficient movement of mining supplies from Karachi to the mine and the subsequent export of copper concentrate and gold to international markets.
Beyond Reko Diq, Balochistan is home to over 40 minerals, including oil, gas, uranium, and coal, with the potential to meet Pakistan’s energy and industrial needs for generations. Efforts to establish local refineries will also enable the country to transition from raw material exports to high-value processed goods, boosting revenue and reducing import dependency.
Policy Initiatives and Investment Forums
Recognizing the strategic importance of the mining sector, the government is finalizing the National Minerals Harmonization Framework 2025, a comprehensive policy designed to attract investment and streamline regulations at both provincial and national levels. This framework will provide incentives for local and foreign investors, simplify licensing procedures, and promote public-private partnerships.
A major milestone in this regard is the Pakistan Minerals Investment Forum (PMIF) 2025, scheduled for April 8-9 in Islamabad. This high-profile event will bring together global ministers, leading corporations, investors, policymakers, and industry experts to explore investment opportunities, discuss technological advancements, and shape policy frameworks for sustainable mining growth.
Conclusion: Tapping into a Sleeping Giant
Pakistan’s mineral wealth represents an untapped economic powerhouse. With strategic investments, infrastructure improvements, and value addition, the mining sector has the potential to emerge as a key driver of economic growth. By fostering foreign partnerships, refining regulatory frameworks, and upgrading logistical networks, Pakistan can unlock the true potential of its mineral resources, paving the way for sustainable industrial and economic prosperity.
