Pakistan is enriched with huge reserves of natural minerals covering an estimated 600,000 sq. Km approximately and many regions are not yet discovered. There are 92 top minerals of which 52 are commercially mined with a total production of 68.52 MMT per year. This is promising with an average annual growth rate of 2-3% but this growth rate can be increased to 50% & above with some state level arrangements. This sector contributes economy with more than 5,000 + operational mines, 50,000 SMEs, and direct employment of 300,000 workers. Many new mines are also opening their operations, and 5000 + exporters are playing a vital role in the mining sector. Pakistan has the world’s 2nd largest salt mines and 5th largest copper and gold reserves, and 2nd largest coal deposits, huge chromite & iron Ore reserves, large deposits of Quartz Stones as well as estimated billions of barrels of crude oil. Despite these resources, the mineral sector is showing sluggish performance and many factors are impacting the growth of this sector. During Jul-Mar FY21, its contribution to GDP remained at 2.38% (Economic Survey FY21). While Pakistan’s mineral exports are only about 0.1 % of the world’s total exports. In the year 2020, Pakistan’s total mineral and metals exports were around $ 1.18 Bn as compared to the world’s $ 1,490 Bn (UN Comtrade). Pakistan is also blessed with abundant reserves of Iron Ore. Iron ore reserves are concentrated in Balochistan and Khyber Pakhtunkhwa (KPK). China and Vietnam is big buyers of Iron Ore from Pakistan. Chromite ore concentrate reserves are concentrated in KPK & Balochistan and many mines are operating to dig these minerals. Silica Crystal Quartz & Mily Quartz reserves are also in billions and concentrated in Gilgit. Due to Snow most of the time in Gilgit extraction of Quartz is quite difficult, Crystal quartz is extracted only in the Summer Season which lasts only for a few months in Gilgit Baldistan.
|
Mineral Description (HS 2 digit |
World's Exports ($ Mn) |
Pakistan's Exports ($ Mn) |
|
HS 25 Salt; Sulphur 4 |
45,403 |
433 |
|
HS 26 Ores, slag and ash |
238,636 |
94 |
|
HS 72 Iron and steel |
366,760 |
63 |
|
HS 73 Articles of iron or steel |
306,026 |
66 |
|
HS 74 Copper |
146,157 |
354 |
|
HS 78 Lead and articles 7 |
7,242 |
4 |
|
HS 76 Aluminum and articles |
175,309 |
42 |
|
HS 79 Zinc and articles |
16,778 |
4 |
|
HS 80 Tin and articles |
4,968 |
0 |
|
HS 82 Tools, implements, of base metal |
65,367 |
114 |
|
HS 83 Miscellaneous articles of base metal |
72,981 |
4 |
|
Total |
|
1,179 |
Source by: UN Comtrade
Pakistan nearly doubled the estimate for the value of its natural mineral reserves but there are many limitations in the export of these natural minerals, little facilitation by Government and the implementation of some rigid policies can significantly increase the production and export of Pakistan’s mineral reserves.
The government has to make policies to control the role of bureaucracy and its involvement in mining. Need to set bureaucracy aside to flourish mining sector & its exports which play a vital role in boosting a country’s economy.
Government should facilitate and encourage private mining companies and private exporters by providing them a level playing field in Mining sector, also facilitate minerals trade agreements with neighboring countries especially China, South Korea, Japan, and Vietnam which are real buyers of Pakistan’s natural minerals and these tenders should be given to private mining companies for production and to private exporters for export. This will not only bring massive foreign investment but also will create job opportunities in areas where minerals are produced or extracted. This arrangement will help exporters to be involved in the flourishing country's economic activity.
State level arrangements are required to end the monopoly in the Mining sector of Pakistan and take away control from a few hands that is the key reason mining sector is not at a boom in Pakistan. Proper accountability laws and audits should be regulated in mining sector for companies involved in mining for years and if they owe any payment to importers those payments should be recovered from these companies & individuals. Paying back money to importers whose investments turned dead after investing in Mining industry of Pakistan will create a trusting relationship of Pakistan with its neighbors that will eventually create surplus trade opportunities for Pakistan.
We recommend these rules & policies be implemented without any further delays to boost Pakistan’s economy and Mining. Daatrade.com is playing a small role in attracting the Government’s attention to an important sector of Pakistan.
