Prime Minister Shehbaz Sharif (Photo courtesy- PID)
Prime Minister Shehbaz Sharif’s recent address at the Pakistan Minerals Investment Forum 2025 (PMIF25) has reignited discussions about harnessing Pakistan’s vast mineral wealth. He asserted that by effectively tapping into mineral reserves valued at “trillions of dollars,” Pakistan could “say goodbye to institutions like the IMF” and alleviate its debt burdens. While this vision is compelling, historical precedents of unfulfilled promises in the mineral sector warrant a critical examination of its feasibility.
Pakistan’s history is replete with ambitious declarations about exploiting its mineral resources, yet tangible outcomes have often been elusive. Numerous Memoranda of Understanding (MoUs) have been signed with various international entities, symbolizing potential collaborations. For instance, in October 2024, Saudi Arabia’s Minister for Investment, Sheikh Khalid Bin Abdul Aziz Al Faleh, announced that the 27 MoUs signed during his visit had increased to 34, with only five becoming operational. This pattern underscores a recurring theme: while agreements are ceremoniously inked, many fail to materialize into concrete projects.
A quintessential example of stalled progress is the Reko Diq project in Balochistan. Touted as one of the world’s largest undeveloped copper-gold deposits, its potential has been acknowledged for years. Recently, Barrick Gold, in collaboration with Pakistani stakeholders, announced plans to secure over $2 billion in international financing for the project, aiming to commence production by 2028. However, past endeavors to develop Reko Diq have been mired in legal disputes, security concerns, and bureaucratic inertia, raising skepticism about the current timeline’s viability.
At PMIF25, Prime Minister Shehbaz Sharif emphasized the imperative of local processing, stating, “We will not allow raw materials to be shipped out of Pakistan.” This policy aims to ensure value addition within the country, fostering industrial growth and employment. The forum attracted delegations from the U.S., Saudi Arabia, China, and other nations, reflecting international interest in Pakistan’s mineral sector.
Deputy Prime Minister Ishaq Dar, in his opening remarks, highlighted Pakistan’s strategic position to emerge as a global mining powerhouse, citing its rich geological landscape and underutilized mineral resources. He emphasized that the government has prioritized the strategic development of the mining sector through progressive policy reforms and investor-centric initiatives, laying the foundation for a robust ecosystem that delivers value for all stakeholders.
Army Chief General Asim Munir assured investors of a robust security framework, stating that the military would “ensure a robust security framework and proactive measures to safeguard the interests and confidence of our partners and investors.” He emphasized that economic security is now a core part of national stability, and the armed forces are ready to assist in developing the country’s mineral wealth.
U.S. companies have expressed interest in investing, with Eric Meyer from the U.S. State Department highlighting the sector’s potential and reaffirming U.S. commitment to expanding bilateral cooperation. Additionally, Canada’s Barrick Gold has reiterated its commitment to the Reko Diq project, viewing it as a transformative venture for Pakistan’s economy.
Security and Infrastructure Challenges
Despite these optimistic overtures, significant challenges persist. Balochistan’s mineral-rich regions have been plagued by insurgent activities, notably from the Baloch Liberation Army (BLA), which opposes foreign involvement and has targeted security forces and foreign nationals. To mitigate these concerns, Army Chief General Asim Munir assured investors of a “robust security framework” to safeguard their interests.
Infrastructure deficiencies further complicate mining operations. The proposed development of transportation networks, including railways, is crucial for the efficient movement of extracted minerals. The Reko Diq project alone anticipates infrastructure financing between $500–800 million, underscoring the substantial investments required beyond mere extraction.
The realization of these mineral projects holds the promise of substantial economic benefits. The Reko Diq project, for instance, is projected to generate $70 billion in free cash flow and $90 billion in operating cash flow over its lifespan. Such figures suggest a potential paradigm shift for Pakistan’s economy, potentially reducing reliance on external financial institutions.
However, investor confidence hinges on consistent policy implementation, transparency, and the government’s ability to honor commitments. The historical backdrop of unfulfilled MoUs and project delays necessitates a concerted effort to break this cycle. Deputy Prime Minister Ishaq Dar’s mention of aligning regulatory frameworks with competitive fiscal terms is a step in the right direction, but its execution remains pivotal.
In the private sector, National Resources Limited (NRL) has made significant strides. The company completed 13 diamond drill holes totalling 3,517 meters, all intersecting significant porphyry-style alteration, sheeted and stockwork quartz vein sets, and sulphide mineralization. Muhammad Ali Tabba, Chairman of NRL, highlighted that assay results from the first six drill holes confirmed strongly mineralized, near-surface zones, with downhole intervals ranging from 48 to 148 meters. The average grade of the intercepts ranged from 0.23% to 0.48% copper, 0.09 to 0.14 g/t gold, and 1.30 to 6.21 g/t silver, resulting in a copper equivalent of 0.28% to 0.56%.
The views expressed in this article are the author’s own and do not necessarily reflect Coverpage’s editorial stance.
