Islamabad – Although it has the fifth largest copper and gold reserves in the world, it is still Pakistan Examine less than 0.1% of minerals globally.
In a country whose mineral wealth is estimated at about 6 to 8 trillion dollars, these treasures remain buried under layers of BureaucracyAnd legal conflict, and the weak infrastructure, so that the opportunities for economic advancement turn into something similar to “wasted opportunities”, according to followers.
Treasures buried in all regions and uninterrupted wealth
From the north of Gilgit, in Sanstan, to the south of Sind, and from the east of Punjab to the west Natural resources The lamax.
The country abounds with 92 species of specified minerals, 52 of which are extracted commercially, and the total annual production capacity is estimated at 68.52 million metric tons, according to a research paper issued by the Pakistani Trade Development Authority in 2021.
These wealth covers an area of 600 thousand square kilometers, and includes important minerals such as: gold, copper, silver, natural coal, iron, salt, as well as crude oil.
This sector represents a vital economic activity, as it contains more than 5 thousand workers, and about 50 thousand small and medium companies, and directly occupies about 300 thousand workers.
Pakistan also has the second largest salt mining in the world, the fifth largest copper and gold reserves, the second largest coal deposit, as well as billions of barrels of crude oil.
Official and informal estimates indicate that the total value of mineral wealth in Pakistan ranges between 6 and 8 trillion dollars, which represents a rare opportunity to revive the struggling economy in the country.
And last March, I was seen Federal government In a cabinet session on the size of these wealth, official estimates confirmed that there are approximately $ 8 trillion of natural minerals in Pakistan.
Sector stumbles despite trillion
Despite this rich resource tank, the mining sector is still suffering from severe growth in growth, and a limited contribution to gross domestic product.
According to data United NationsPakistan’s exports of minerals only represented about 0.1% of the world’s exports in 2020, with a value of about 1.18 billion dollars, compared to global exports of $ 1.5 trillion, and the sector continues its annual growth at a weak rate ranging between 2 and 3%.
Dr. Othman Shuhan, economic advisor at the Institute of Space and Security Studies in Islamabad, says that the main reason for this weakness is due to the “fragmented organizational framework”, which arose after the eighteenth constitutional amendment.
He explains to Al -Jazeera Net that the federal government and the four regions issue overlapping licenses, on contradictory conditions, which transforms even routine approvals into a “bureaucratic maze”, as he described it.
Shuhan notes that “prominent battles” such as the “Rico Dick” conflict over gold and copper shows how multiple judicial authorities can hinder billions of dollars for years, leading to costly international arbitration, which supports the appetite of foreign investors.
He adds that companies face multiple problems, including limited budgets for exploration, poor transport infrastructure, and the lack of technical cadres specialized in regional ministries, as well as outbreaks of corruption and the pursuit of local rent, which makes it practically impossible to finance investment projects at a global level.
For his part, the researcher at the “Pakistan Institute for Development Economics” in Islamabad, Dr. Mohamed Faisal, sees that the sector suffers from a regulatory system that is burdened with restrictions.
He assures Al -Jazeera Net that the eighteenth amendment gave the regions a degree of independence in resource management, but this was not reflected in promoting Transparency Or coordination with the federal government.
Faisal is prepared for several basic obstacles:
- End license procedures that hinder the speed of attracting investments.
- Weak application of mining environmental standards.
- Weak technical ability to draw precise maps of metal reserves.
- The infrastructure supported from transportation networks to storage and energy facilities.
Investment race between Washington Bitter
The Pakistani government has taken steps to enhance investment in the mining sector, by launching the “Special Investment Facilitation Council” last year, which began to implement unified regulations, establish the National Mining Fund, and to launch a modern license framework, and policies described as friendly to investors.
During the visit of the Marshal Asim MunirThe commander of the Pakistani army, to Washington last June, the mining file was strongly present in his meeting with the American President Donald Trump.
In the same month, the Pakistani Minister of Petroleum, Ali Bruise, the owner of American companies, called for partnerships and projects with the Pakistani government, within a framework that supports clean energy and facilitates business.
Prime Minister Shahbaz Sharif, with the support of the army leadership, also encouraged openness to countries such as Saudi Arabia, China, and the European Union, And the United StatesWith the aim of attracting investments to the mineral sector, in an attempt to reshape the structure of the economy and diversify the sources of income.
However, despite these moves, analysts believe that structural obstacles have not yet been resolved, and that political discourse turned into an actual implementation that still faces thorny obstacles, most notably administrative overlap, instability of legal frameworks, and the absence of transparency in returns and privileges.
Baluchistan .. Wealth ignites anger instead of development
The Baluchistan -rich region, especially copper and gold, represents the most dangerous point of tension in this file. For many years, the region has been witnessing bloody conflicts between the federal authorities and separatist groups, which accuse the government of “stealing” the wealth of the region and selling it to foreign companies, especially the Chinese ones.
In this context, Dr. Mohamed Faisal “When we talk about mineral extraction in multiple areas, we are also talking about a real danger that feeds separatist tendencies, unless the file is dealt with with great sensitivity.”
And it confirms that it is necessary to first strengthen the national capabilities in extraction and management, before opening the doors wide open to foreign investments.
“The justice crisis often appears in the distribution of returns, when the largest part of the profits are granted to foreign companies, while the locals feel marginalized and deprivation. This creates a fertile environment for anger and popular rejection,” Faisal added.
And it stresses the need to ensure the fair distribution of revenues, and the involvement of the local population in planning and decision -making, in order to prevent the escalation of anger and separation.
“If these demands are ignored, the risk of separatist tendencies will remain existing and may worsen.”
For his part, Dr. Othman Shuhan believes that separatist tendencies will not necessarily extend to other regions of the country, provided that the government is committed to transparency in the distribution of revenues, and that mining profits will reach ordinary citizens.
A rare opportunity in the chaos
Pakistan has a metal wealth capable of turning the balance of its economy completely, if it is better to exploit it. But the way to this goal is not furnished with gold, but rather classes of political complexity, security challenges, and organizational obstacles.
And between government ambition and positive signals from abroad, the decisive step remains the reform of the interior: consolidating transparency, unifying laws, building infrastructure, and involving the local population. Only then “suspended gold” can turn into a real opportunity to get up, rather than remaining anger and separation, observers say.