Mineral wealth

PAKISTAN’S mineral wealth offers an opportunity to attract investment, earn foreign exchange and support long-term economic growth. But turning this potential into reality will require more than promises.

At the Pakistan Minerals Investment Forum 2026, Deputy PM Ishaq Dar has promised predictable policies and institutional support to investors interested in the country’s mineral resources. Such assurances are welcome. However, investors will need more than that.

The country’s experience with large mining projects has not always inspired confidence. The Reko Diq dispute remains an important reminder of what can happen when agreements and government commitments become contentious.

We cannot afford another dispute that damages the country’s credibility. Policy consistency must therefore extend beyond individual governments. That said, mining rights must be awarded through transparent processes, with clear contractual obligations and effective regulatory oversight.

Moreover, mineral development must benefit local populations. Communities should receive their share of employment, as well as better public services and improved infrastructure. Without local support, even commercially viable projects can falter.

Additionally, Islamabad must avoid becoming merely a supplier of raw materials to the world. Exporting unprocessed minerals will bring some foreign exchange, but it will not deliver wider economic gains. The real opportunity lies in transfer of technology for refining minerals and producing finished goods locally. This would require investment in processing facilities and related industries.

The aim must be to build an industrial base around mineral resources rather than simply dig them out and ship them abroad. The state should also resist the temptation to present minerals as a solution to Pakistan’s long-term economic difficulties. They can contribute significantly to sustainable growth and help diversify exports. But no country has ever developed on mineral wealth or exports alone.

Natural resources can provide capital for development, but they cannot replace the hard work of building productive industries. Mineral wealth must become part of a wider industrialisation strategy. The country needs to raise productivity across manufacturing and agriculture, and develop products that can find markets abroad.

Published in Dawn, November 14th, 2026