Minister for Petroleum Ali Pervaiz Malik announced that the government is moving to create an enabling ecosystem for companies operating major mining projects, including Reko Diq and Saindak, to function more effectively in Pakistan’s remote and infrastructure-deficient regions.
Speaking at the Pakistan Business Forum (PBF) session titled “Unlocking Pakistan’s Untapped Mining Resources for National Wealth”, Malik highlighted that one of Pakistan’s biggest structural challenges is the constitutional status of mineral resources—classified as a provincial subject. This division, he said, has resulted in investors dealing with multiple regulatory systems, legislation, and licensing frameworks across different provinces.
Malik said the government had been working to harmonise mining regulations, introducing unified ESG and safety standards, encouraging a consistent fiscal regime, and creating an environment that reduces investor risk. He expressed hope that once fully operational, Reko Diq would serve as a benchmark for future mining developments in Pakistan.
The minister noted that the journey to secure the $3.5 billion financial close for Reko Diq, the largest private-sector transaction in Pakistan’s history, came only after decades of legal and procedural challenges.
While referring to Pakistan’s frequently cited $7 trillion mineral potential, Malik clarified that these figures are based on geological assumptions, not on measured or proven resource assessments.
Need for International Benchmarking
Dr Hamid Ashraf, Adviser to the Geological Survey of Pakistan, stressed that Pakistan’s fiscal regime must be aligned with leading mining jurisdictions such as British Columbia, Western Australia, Indonesia, Kazakhstan, Chile, and South Africa. He pointed out that Pakistan has previously operated under an excessively complex structure of six different mining policies, eight Acts, and 36 sets of rules, deterring investment and complicating operations.
He said Reko Diq’s progress has set a positive precedent and described the project as a torchbearer for Pakistan’s broader mining ambitions. Significant deposits also exist in Saindak, Duddar, Chiniot, Kohistan, and Nagarparkar.
Reko Diq Construction Underway
Reko Diq Mining Company (RDMC) Country Manager Zarrar Jamali confirmed that the project is currently in the construction phase, with feasibility studies, environmental and social impact assessments, and baseline studies completed.
Pakistan Business Council (PBC) Chairperson Dr Zeelaf Munir emphasised the need for partnerships built on resilience, reform, and responsible collaboration, stating that no single institution can steer the mining sector alone.
Industry leader Muhammad Ali Tabba urged the government to develop copper and gold smelting facilities within Pakistan, dismissing concerns about their commercial viability. He argued that exporting millions of tonnes of raw material is not only economically wasteful but poses environmental and security risks.
In response, Malik said that any smelter must be backed by consistent supplies of raw material to operate sustainably.
Two Major Mining Projects Nearing Operational Phase
National Resources Limited CEO Shamsuddin Sheikh shared that Pakistan is on the cusp of operationalising two major mining projects:
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Reko Diq, valued at around $8 billion, and
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The Saindak project, valued above $1.5 billion.
Both projects are expected to begin operations before the end of 2030, marking a pivotal shift in Pakistan’s mining sector and long-term economic potential.
