The story of Pakistan’s mineral resources begins with immense geological promise but often ends in administrative paralysis. Stretching across the country’s diverse landscape are deposits of coal, copper, gold, iron, chromite, salt, marble, and various other minerals, many of which remain significantly underdeveloped. These resources, in a better governed and more visionary context, could have served as engines of economic independence. The Pakistan Economic Survey 2021-22 indicates that the mining sector contributes just 2.5% to GDP, despite the significant resources available. Yet, the mineral wealth under Pakistan’s soil remains largely untapped, sidelined by decades of bureaucratic entanglement, policy confusion, and neglect.
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According to surveys conducted by the Geological Survey of Pakistan, the country possesses over fifty different minerals. Some of these, such as coal in Sindh, copper and gold in Balochistan, natural gas in the Sui fields, and iron ore in Punjab, offer immense economic potential. The coal deposits in the Thar desert are among the largest lignite reserves in the world. Similarly, the Reko Diq site in Balochistan contains one of the largest unexploited deposits of copper and gold. A 2020 report by Tethyan Copper confirmed that the Reko Diq site holds 5.9 billion tons of copper ore with an estimated 0.41% copper grade. These figures are not speculative projections but confirmed findings based on extensive geological research.
Despite this, the mining sector's contribution to the national economy hovers at just above two and a half percent of the Gross Domestic Product. This marginal role is symptomatic of deeper structural deficiencies. The sector remains informal, fragmented, and vulnerable to both internal mismanagement and external exploitation. While the country struggles to secure international loans and relies heavily on imports to meet industrial and energy needs, its own soil holds answers it has consistently failed to explore. The World Bank’s 2020 report on Pakistan's economy revealed that the country's dependency on imported energy and raw materials costs the economy billions annually.
The imbalance between metallic and non-metallic minerals also speaks to the inefficiencies at play. While non-metallic minerals such as limestone, gypsum, marble, and dolomite are mined with some regularity to meet local demand, the extraction of metallic minerals is severely restricted. The production figures from recent years are underwhelming, particularly when compared to regional competitors. Only chromite is extracted with any semblance of consistency. Copper, bauxite, and iron ore production remains sporadic and insufficient. A 2018 report by the Ministry of Energy showed that only 35,000 tons of iron ore were mined in 2017, significantly lower than regional competitors. These are not outcomes born of scarcity but rather the result of poor policy implementation and a lack of strategic vision.
A major barrier has been the chronic lack of investment, both domestic and foreign. Mining is a capital-intensive sector that demands significant upfront spending on exploration, infrastructure, and technology. Most of Pakistan’s mineral-rich regions, such as those in Balochistan and the rugged north, remain inaccessible or lack even the most basic transport and energy infrastructure. Moreover, potential investors are deterred by an unstable political climate and inconsistent regulatory frameworks. In many cases, the quality and quantity of the minerals remain unverified due to the absence of detailed geological mapping. The 2021 World Bank report noted that over 70% of Balochistan's roads remain unpaved, hindering access to valuable mineral deposits. Without this foundational data, investment remains speculative and therefore, unattractive.
Furthermore, outdated mining techniques continue to limit the scale and quality of resource extraction. Pakistan’s mining operations, especially in smaller enterprises, still rely heavily on traditional methods that compromise both safety and efficiency. Modernizing this sector requires not just capital but also access to international mining expertise, which remains limited due to policy uncertainty and inadequate institutional support. The International Labour Organization (ILO) reports that more than 100 mining-related fatalities occur annually in Pakistan due to outdated, unsafe mining practices. Many countries have made progress by forming partnerships with multinational firms and developing knowledge-sharing mechanisms. Pakistan, however, remains on the sidelines.
Moreover, the country's political climate has added another layer of complexity. In particular, the mineral-rich province of Balochistan has witnessed years of unrest, mistrust, and provincial grievances. The presence of insurgent groups, compounded by the federal government's failure to engage constructively with local communities, has further isolated the region. Companies considering investments in such areas must weigh not only the economic feasibility but also the physical security of their assets and personnel. The Human Rights Commission of Pakistan’s 2021 report highlighted over 250 violent incidents in Balochistan, further exacerbating investment risks. These concerns are amplified by the lack of a cohesive and enforceable national policy on mining.
Infrastructure is another obstacle that cannot be ignored. Mining ventures require road access, power supply, water availability, and efficient logistics networks. Yet, most of the mineral zones lack all four. Even when minerals are extracted, their transport to processing units or ports involves delays and increased costs. The lack of dedicated mineral corridors and storage facilities further weakens the economic rationale of such projects. Pakistan's Infrastructure Implementation Capacity Assessment (2020) found that over 60% of mineral-rich areas lack adequate infrastructure, leading to high logistical costs. Consequently, what little is mined is often exported in raw form, only to be re-imported later as refined goods at significantly higher costs.
The regulatory environment also plays a detrimental role. Investors regularly encounter multiple agencies with overlapping jurisdictions, vague licensing procedures, and unclear legal mandates. Instead of serving as facilitators, government institutions frequently act as impediments. Moreover, widespread corruption and red tape have eroded the confidence of serious business players. The Fraser Institute’s 2022 report ranked Pakistan among the bottom 10 countries globally for mining investment attractiveness due to regulatory barriers. The absence of a single-window operation for mining approvals, coupled with unpredictable taxation policies, has turned Pakistan into a difficult destination for mineral investment.
Additionally, the scarcity of a skilled workforce has hindered the mining sector’s evolution. Technical training in geological sciences, mineral engineering, and environmental management is still underdeveloped. Local institutions offer limited programs, and the private sector has yet to invest in vocational training on any meaningful scale. As a result, the few projects that are active rely heavily on foreign professionals, driving up costs and creating a dependency that cannot support long-term growth. The Higher Education Commission of Pakistan reports that fewer than 1,000 students graduate annually in mineral-related fields, limiting the availability of skilled workers for mining operations. The absence of qualified personnel also results in inefficient operations, lower yields, and greater environmental degradation.
On that note, environmental concerns have emerged as another significant challenge. While mineral exploitation promises economic benefits, it comes with serious ecological risks. Projects such as the Thar coal initiative have attracted criticism for their impact on water tables, air quality, and local biodiversity. Environmental oversight remains lax, with existing regulations rarely enforced and environmental impact assessments either outdated or altogether missing. A 2021 report by Pakistan’s Water Resources Authority stated that water tables in the Thar desert had fallen by 50% due to mining activities. Moreover, the government’s failure to balance economic goals with environmental responsibilities has drawn criticism from both domestic and international observers.
These challenges, while numerous, are not insurmountable. However, they require coordinated responses. Pakistan cannot afford to continue approaching the mining sector as an afterthought. It must treat it as a cornerstone of national development, integrated into broader industrial and trade policies. To begin with, the state must invest in up-to-date geological surveys that provide detailed and credible data. The United Nations Development Programme (UNDP) has called for a nationwide update of geological surveys to attract foreign investment in the mining sector. Such surveys are essential not only for attracting investment but also for framing sound policy decisions.
Furthermore, the regulatory apparatus must be overhauled. A transparent, investor-friendly legal framework must replace the current patchwork of outdated laws and ambiguous protocols. Provincial and federal authorities must develop a unified strategy that respects local ownership while aligning with national objectives. Moreover, efforts should be made to foster community engagement, especially in areas where mistrust and marginalization have taken root. The 2020 National Minerals Policy draft calls for a single-window system to streamline mining approvals and improve regulatory clarity. The economic benefits of mining must be equitably distributed, and local populations must be treated as stakeholders rather than obstacles.
Investment in infrastructure must also be prioritized. Mineral development cannot occur in isolation from transport, energy, and communication networks. Targeted investments in mineral corridors, backed by public-private partnerships, could yield significant dividends. Public-private partnerships like the China-Pakistan Economic Corridor (CPEC) can serve as models for establishing mining-specific infrastructure. Furthermore, the development of domestic processing and refining facilities would allow the country to move up the value chain, reducing dependence on foreign markets and increasing export earnings.
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Simultaneously, the government must foster human capital development in the mining sector. Vocational training centers, technical universities, and public-private initiatives should be supported to train the next generation of geologists, engineers, and environmental experts. Moreover, environmental protection must be embedded into every aspect of mining policy. Pakistan's National Skills University launched a Mining Technology diploma in 2022, but enrollment remains low, underscoring the need for expanded training initiatives. Development should not come at the cost of ecological destruction. Sound environmental practices will not only improve sustainability but also enhance Pakistan’s international standing.
Ultimately, the question is not whether Pakistan has the resources. The question is whether it has the will and competence to use them wisely. Countries with fewer resources but better governance have built thriving economies by capitalizing on their mineral sectors. Botswana, with fewer mineral resources, has successfully transformed its diamond industry into the backbone of its economy through strong governance. In contrast, Pakistan continues to grapple with missed opportunities and unfulfilled potential. The minerals beneath its soil could transform its economy, reduce its reliance on imports, and generate employment across multiple sectors. But that transformation will require more than rhetoric. It will demand serious planning, political stability, institutional reform, and long-term commitment.
For now, the minerals remain underground, as does the hope they represent. Whether that hope is realized will depend not on what lies beneath the earth, but on what direction the country chooses to take above it.
