Give a resume of the mineral resources of Pakistan and comment as to why have we not been able to capitalize upon this resource base?

Introduction

The Holy Quran says: "And We sent down iron, wherein is great military might and benefits for the people" (Surah Al-Hadid, 57:25). Pakistan has been blessed with a wide variety of minerals: some of the world's largest copper and gold deposits, vast coal reserves, one of the largest rock salt deposits, rare gemstones and large reserves of marble. Yet mining contributes only around 3 percent of GDP, and mineral exports remain small. The gap between Pakistan's mineral wealth and its benefits is one of the clearest examples of untapped potential in the national economy.

Overview

The Geological Survey of Pakistan has identified more than 90 types of minerals, and over 50 are commercially exploited. Most mineral wealth lies in Balochistan, Khyber Pakhtunkhwa and Gilgit-Baltistan. After the 18th Amendment, minerals other than oil, gas and nuclear materials became a provincial subject, while the federal government coordinates through the National Mineral Policy 2013. In 2025, Pakistan hosted the Pakistan Minerals Investment Forum to attract foreign investment.

A resume of Pakistan's mineral resources

1. Copper and gold. Reko Diq in Chagai district is among the world's largest undeveloped copper-gold deposits, and Saindak has been producing copper, gold and silver since 2003 under a Chinese operator. (Reference: Barrick Gold, Reko Diq Project feasibility update, 2024; Saindak Metals Limited.)

2. Coal.

Pakistan's coal reserves are estimated at about 186 billion tonnes, of which about 175 billion tonnes are at Thar in Sindh, one of the world's largest lignite deposits, now used for power generation. (Reference: Thar Coal and Energy Board; Pakistan Economic Survey 2023-24, chapter on energy.)

3. Rock salt.

The Khewra Salt Mine in the Salt Range is one of the oldest and largest salt mines in the world, producing pink Himalayan salt now exported worldwide, often after repackaging abroad. (Reference: Pakistan Mineral Development Corporation, Khewra Salt Mine.)

4. Gemstones.

Northern Pakistan produces emeralds (Swat), rubies (Hunza), peridot, aquamarine, topaz and tourmaline, valued by collectors worldwide. (Reference: Gems and Gemological Institute of Pakistan; Geological Survey of Pakistan.)

5. Marble and dimension stones.

Pakistan has large reserves of marble, onyx and granite, particularly in Khyber Pakhtunkhwa and Balochistan, but much is wasted through blasting. (Reference: Pakistan Stone Development Company.)

6. Iron ore and chromite.

Iron ore deposits at Kalabagh, Chiniot and Nokkundi, and chromite in Balochistan and Khyber Pakhtunkhwa, could support domestic steel and alloy industries. (Reference: Geological Survey of Pakistan; Punjab Mineral Company, Chiniot iron ore project.)

7. Gypsum, limestone and industrial minerals.

Large reserves of gypsum, limestone, dolomite, silica sand and clays support the cement, glass and ceramics industries, making Pakistan a major cement exporter. (Reference: All Pakistan Cement Manufacturers Association; Geological Survey of Pakistan.)

8. Oil, gas and rare earth potential.

Besides oil and gas, preliminary surveys suggest potential for lithium, rare earths and other critical minerals needed for modern technologies. (Reference: Ministry of Energy (Petroleum Division), Pakistan Minerals Investment Forum, April 2025; Geological Survey of Pakistan.)

Why Pakistan has not capitalised on its mineral base

1. Inadequate geological data.

Only a portion of the country has been mapped in detail at modern scales, so investors lack reliable data on reserves. (Reference: Geological Survey of Pakistan, geological mapping coverage; National Mineral Policy 2013.)

2. Policy and legal uncertainty.

The Reko Diq dispute, in which the Supreme Court annulled an agreement in 2013, led to an ICSID award of about $6 billion against Pakistan in 2019 before a settlement in 2022, deterring investors for years. (Reference: Supreme Court of Pakistan, Maulana Abdul Haque Baloch v. Government of Balochistan, PLD 2013 SC 641; ICSID, Tethyan Copper Company v. Pakistan, Award of 12 July 2019.)

3. Federal-provincial disputes.

After the 18th Amendment, overlapping federal and provincial roles, different provincial mining rules and disputes over royalties have complicated investment. (Reference: Constitution of Pakistan, Article 172(3) and Fourth Schedule; National Mineral Policy 2013.)

4. Security problems.

Insurgency in Balochistan and attacks on workers and foreign investors, including Chinese nationals, deter mining in the most mineral-rich areas. (Reference: Pakistan Institute for Peace Studies, Pakistan Security Report 2023.)

5. Outdated mining methods.

Small-scale mining using blasting and manual labour wastes resources, especially in marble and coal, and causes frequent accidents. (Reference: Pakistan Stone Development Company; International Labour Organization, reports on mine safety in Pakistan.)

6. Lack of infrastructure and investment.

Mineral areas lack roads, railways, water and power, and the sector attracts little foreign or domestic capital. (Reference: Board of Investment, mining sector profile; World Bank, Pakistan Development Update, 2023.)

7. Raw exports without value addition.

Pakistan exports raw minerals, such as chromite, marble blocks and pink salt, which are processed and branded abroad, losing most of the value. (Reference: Trade Development Authority of Pakistan, mineral exports data; Pakistan Bureau of Statistics, trade data.)

8. Weak governance and local exclusion.

Corruption, illegal mining, weak regulation and the exclusion of local communities from benefits have created resentment, especially in Balochistan. (Reference: Extractive Industries Transparency Initiative standards; Human Rights Commission of Pakistan, Balochistan reports.)

Way forward

Pakistan should complete modern geological mapping, offer stable and transparent mining laws with uniform provincial rules, provide security, invest in infrastructure, promote mechanised and safe mining, insist on domestic processing and value addition, train geologists and engineers, and share revenues fairly with provinces and local communities. The 2022 Reko Diq agreement, which gives Balochistan a 25 percent share, and the Special Investment Facilitation Council offer a chance to reset the sector. (Reference: Reko Diq agreements, December 2022; Board of Investment (Amendment) Act 2023.)

Conclusion

Allama Iqbal wrote in Bal-e-Jibril: "Nahin hai na-umeed Iqbal apni kisht-e-veeran se, zara nam ho to ye mitti bahut zarkhez hai saqi" (Iqbal is not despondent about his barren field; with a little moisture this soil is very fertile). Pakistan's mineral-rich soil needs only the "moisture" of good policy. Its minerals, from Reko Diq's copper and gold to Thar coal, Khewra salt, gemstones and marble, could transform its economy. They have remained underused because of poor data, policy uncertainty, federal-provincial disputes, insecurity, outdated methods, weak infrastructure, raw exports and poor governance. With stable policies, security, value addition and fair benefit-sharing, Pakistan's mineral wealth can become a foundation of prosperity.