An detailed Insight into the Mineral Sector of Pakistan

Engineering Post report

The federal Government, as per the constitutional provisions, is mandated with geological surveys and regulation of mineral oil, natural gas and minerals necessary for generation of nuclear energy and those occurring  in federally controlled areas, national policy formulation, facilitation and coordination  at national and international levels.

All other minerals are Provincial subject and  the executively  and legislatively  authority for regulating the development and exploitation  of these natural resources through  grant of mineral titles (prospecting/ exploitation  of these natural resources  through grant of  mineral titles (prospecting /exploration licenses  and mining leases ) etc.

Pakistan is blessed with as many as 92 minerals, out of which 50  are exploited on commercial basis.

Following initiatives/ achievements have been undertaken by the Petroleum Division for the uplift of mineral sector in Pakistan;

  1. Balochistan Minerals Exploration Company Limited (BMEC) was established as joint venture with the Provincial Government in August 2020 to promote large-scale mining in the mineral rich province of Balochistan.
  2. An investment facilitation project “ Establishment of National Minerals Data Centre (NMDC)  “ has been launched at the federal level through  Public Sector Development Development Programme (PSDP) at a cost of Rs 295.000 million  to main  data repository  encompassing  the available  geo-technical  data  and administrative  details about  licensing –granted mineral titles  and the areas  applied for mining concession. The NMDC  will comprise  an integrated  system of the  units located in each province  and other concerned organizations ( Geological Survey of Pakistan etc) connected to a Central  set up managed by the Mineral  Wing of the Metroleum  Division . This arrangement would enable ready access to the basic data acquired by the prospective investors and would facilitate the investors in a big way.
  3. Another initiative has been taken through PSDP “Legal Consultancy Services for Drafting of Model Mineral Agreement and Formulation of Uniform Regulatory Regime “at a cost of Rs 100.000 million to facilitate introduction of an internationally competitive regulatory and institutional framework in the country in the light of the best industry practices.
  4.  Action is underway for revamping of Pakistan Mineral Development Corporation (PMDC_ and restructuring of Geological Survey of Pakistan (GSP) for better service delivery to help exploration and development of indigenous  mineral resources.
  5. Stakeholders ‘consultation process was also initiated  for formulation of  policy framework  to promote  use of indigenous coal resources  for synthesis  of gas and liquid fuels.
  6. Services have been extended for special development packages  introduced  by the Federal Government for mineral sector of Balochistan and Gilgit-Baltistan.
  7. Support is continued  to facilitate smooth operation of mineral sector projects—Saindak Copper-Gold (Saindak Metals Limited), Duddar Lead –Zinc (MCC Huaye Duffar Mining Company), Barite –Lead-Zinc (Bolan Mining Enterprises), Chiniot Iron Ore  (Punjab Mineral Company) and  mining projects of rock and coal.

Coal is still used as a source of energy production; however, its share is only 12.8 per cent in total installed capacity.

t report