Balochistan, Pakistan’s largest and most mineral-rich province, holds an estimated $1 trillion in mineral wealth, including copper, gold, chromite, coal, and rare earth minerals. The Balochistan Mines and Minerals Act, 2025, is a landmark legislative development aimed at transforming this potential into sustainable economic growth. The Act is significant for several key reasons:
1. Joint Federal-Provincial Framework
The Act establishes a collaborative framework through which the federal and provincial governments work together to negotiate mining contracts, set fiscal terms such as royalties and taxes, and ensure compliance with international standards. This approach balances Balochistan’s constitutional rights under the 18th Amendment with national economic interests, promoting unity in resource management.
2. Promotion of Public-Private Partnerships
The Act enables both federal and provincial governments to jointly screen and approve international investors, ensuring that investment aligns with both economic development goals and national security concerns. This structured oversight fosters transparency and mutual benefit.
3. Institutional Reforms
Key institutions, such as the Mineral Investment Facilitation Authority, have been established to oversee operations and streamline processes. The introduction of online applications, digital royalty collection, and other automated systems enhances transparency, reduces red tape, and increases efficiency in mineral resource governance.
4. Attracting Global Investment
By simplifying regulations and offering investor-friendly incentives, the Act aims to attract foreign direct investment (FDI). The Pakistan Minerals Investment Forum 2025 spotlighted major opportunities such as the Reko Diq mine, one of the world’s largest undeveloped copper-gold deposits, with an estimated 5.9 billion tons of ore.
5. Local Employment and Skills Development
The Act mandates:
100% local hiring for unskilled jobs, and
50–90% local hiring for skilled roles in mining projects.
To support this, training centers will equip local communities with technical skills, ensuring they can access higher-paying, skilled positions. This policy reduces dependency on external labor and promotes inclusive growth.
6. Poverty Reduction and Infrastructure Development
With 63% of Balochistan’s population living below the poverty line, and 85% lacking clean water while 75% lack electricity, mining projects offer a transformative opportunity. Investment in roads, electricity, water systems, and community services will improve quality of life and address chronic underdevelopment. Projects such as the Mines Rescue & Safety Training Centre and mineral resource mapping are key steps in building local capacity.
7. Modernization of Mining Laws
The Act replaces outdated legislation, such as the Mines Act of 1923, aligning mining governance with contemporary needs. It encourages large-scale, efficient operations while phasing out small, unregulated mining. In 2018–19, the provincial mines department collected Rs. 2.8 billion in revenue, a figure that is expected to grow significantly under the new legal regime.
8. Environmental Protection and Sustainability
Environmental safeguards are embedded in the Act, ensuring responsible and sustainable mining. Oversight mechanisms will help manage Balochistan’s 1,610 licensed mines, including approximately 500 coal mines and 600 onyx/marble mines, with a focus on long-term ecological preservation.
9. Resource Mapping and Discovery of New Deposits
Geological surveys and resource mapping efforts under the Act will help identify new mineral deposits, increasing the province’s attractiveness to investors and diversifying revenue streams. Areas within the Tethyan Magmatic Arc, such as Reko Diq and Saindak, have already drawn global interest due to their high mineral potential.
10. Path to Economic Transformation
Despite its resource wealth, Balochistan has a per capita income of less than $1,000. Projects like Reko Diq, with expected $7 billion in investment, could transform the province into a major economic hub. The Act ensures that while Balochistan maintains control over its resources, federal support is leveraged to create a stable investment climate that fosters long-term development.
Canada operates under a federal–provincial mining framework, similar in principle to Balochistan’s Act. In the U.S., SMCRA establishes a cooperative federal–state system for coal mining. The federal government sets national standards and authorizes states with equivalent regulations to manage permits, inspections, and reclamation, ensuring environmental protection and local oversight.
In summary, the Balochistan Mines and Minerals Act, 2025 is a comprehensive legal framework designed to unlock the province’s mineral potential, promote equitable development, attract foreign investment, and improve living standards through infrastructure, employment, and environmental sustainability.
