Pakistan Mining Industry Makes Historic Global Strides

Pakistan’s mining sector has long held untapped potential, boasting vast reserves of valuable minerals such as copper, gold, coal, lithium, and rare earth elements. In recent years, however, a major transformation has taken root—one that is reshaping not only the future of Pakistan’s economy but also capturing global attention. In 2025, Pakistan mining industry has taken a monumental leap forward, marking a historic moment on the international stage.

Global Spotlight: Reko Diq Project

At the heart of this transformation is the Reko Diq copper-gold project located in Balochistan. With estimated reserves of over 5.9 billion tons of ore, this site is one of the largest undeveloped copper-gold deposits in the world. Spearheaded by Barrick Gold Corporation, the project is expected to generate a staggering $74 billion in free cash flow over 37 years, according to Barrick’s CEO. Commercial production is slated to begin in 2028, with the initial phase involving an investment exceeding $7 billion.

This project is more than just a mining venture—it’s a geopolitical and economic game-changer. In a time when demand for copper and gold is surging due to global infrastructure development and clean energy transitions, Reko Diq puts Pakistan on the map as a key supplier of strategic minerals.

Further solidifying its international profile, the Reko Diq project has attracted significant global investment. The International Finance Corporation (IFC) recently approved a $300 million loan, with another $700 million expected by mid-2025. Moreover, Saudi Arabia’s Manara Minerals is reportedly in discussions to acquire a 10–20% equity stake in the project, signaling confidence from major Gulf investors.

Expanding Interest and Investment

While Reko Diq garners headlines, it’s only the tip of the iceberg. Pakistan hosted the Pakistan Minerals Investment Forum (PMIF25) in Islamabad in April 2025. The event brought together over 30 international delegations, including investors from the United States, China, Saudi Arabia, the United Kingdom, and the European Union. This was a clear demonstration of growing global interest in Pakistan’s mining potential.

During the forum, Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar emphasized Pakistan’s vision to move from raw mineral exports to value-added processing, ensuring more wealth generation and job creation within the country. Investors were assured of Pakistan’s commitment to transparent, stable, and investor-friendly regulations.

Legal and Policy Reforms

Much of this growing investor confidence is rooted in recent reforms undertaken by the Government of Pakistan. The Foreign Investment (Promotion and Protection) Act 2022 and the National Mineral Coordination Framework 2025 have established a streamlined regulatory regime. These laws provide a one-window operational framework and improved interprovincial coordination, crucial in a country where mining falls under both federal and provincial jurisdiction.

The new policies are designed to reduce bureaucratic hurdles, increase transparency, and protect the interests of foreign and domestic investors. These steps have gone a long way in restoring confidence and attracting long-term strategic investment.

Other Key Projects and Resources

Beyond Reko Diq, Pakistan hosts a variety of other strategic mining sites. The Duddar Mine in Balochistan, operated by a Chinese company, is the country’s largest underground lead-zinc mine. It has an estimated reserve of 50 million tons and contributes significantly to local employment and foreign exchange earnings.

Pakistan also holds the 16th largest coal reserves in the world, with the Thar coalfield containing approximately 175 billion tons. The country’s salt reserves—especially the Khewra and Warcha salt mines—are among the largest globally, supplying millions of tons annually for domestic use and export.

Pakistan’s mineral base includes 92 identified minerals, out of which 52 are commercially exploited, producing 68.5 million metric tons annually and employing over 300,000 workers.

Economic and Strategic Implications

The mining sector’s rise is a significant opportunity for Pakistan to diversify its economy, reduce reliance on imports, and boost exports. With foreign reserves under pressure and persistent balance-of-payment issues, the mining sector represents a much-needed revenue stream. Additionally, as the world shifts toward green energy, minerals like lithium, copper, and rare earths are becoming increasingly vital. Pakistan is well-positioned to supply these materials, provided its infrastructure and regulatory systems continue to improve.

Challenges Ahead

While progress is evident, the sector still faces challenges. Issues such as political instability, regional security (especially in Balochistan), environmental concerns, and underdeveloped infrastructure could hamper growth. Moreover, the success of these mega projects depends on transparent governance and the equitable distribution of benefits, particularly to local communities.

Conclusion

Pakistan’s mining industry has entered a new era—one marked by global recognition, large-scale investment, and bold ambition. From Reko Diq’s world-class copper-gold reserves to the strategic development of other mineral assets, Pakistan is no longer an overlooked player but an emerging force in the global mining landscape. With the right mix of policy continuity, investor confidence, and community inclusion, this could well be the beginning of a mining-driven economic renaissance for the country.

Reference:  پاکستان کی کان کنی کی صنعت نے عالمی سطح پر تاریخ رقم کر دی