The government is close to finalising the National Minerals Harmonisation Framework 2025, a key initiative aimed at attracting investment in the mineral sector.
All provinces, Azad Jammu and Kashmir and Gilgit-Baltistan are to adopt the policy by February 26 this year. It will also be unveiled at the Pakistan Critical Minerals Summit, planned for April 9.
Saudi Arabia has already expressed interest in acquiring 15% shares in the Reko Diq copper and gold mining project. The framework will help to formalise the policy at the domestic and national levels, which will encourage investment in Pakistan's mining sector.
This is a key initiative of the Special Investment Facilitation Council (SIFC) for the mining industry.
Sources said that the federal government was striving to take all provinces on board while finalising the National Minerals Harmonisation Framework 2025.
They said that the provinces had been kept involved at all stages, including exclusive briefings to the chief secretaries followed by the chief ministers as well as in consultations with large and small-scale mining companies, mining associations, state-owned enterprises (SOEs) and provincial mining departments.
Over 750 points were raised, of which 694 have been settled and incorporated into the framework. As a result, the harmonised Mines and Minerals Act 2025 and the National Mineral Development Policy 2025 are now ready for adoption and implementation. These will be showcased during the upcoming Pakistan Minerals Summit in April.
Sources said that the federal government, in collaboration with the relevant stakeholders, was to finalise the Mines Safety and Health Act 2025 and present a milestone-based action plan to ensure its adoption by all provinces before June 2025.
All chief ministers and the AJK prime minister are required to curb illegal mineral mining and ensure that no lease is granted to foreign companies involving the extraction and export of raw material, as already incorporated into the Mines and Minerals Act 2025.
They will also identify provincial policies and laws that directly impact foreign direct investment and industrial development in the country. They will collaborate with the Ministry of Law and Justice for initiating the harmonisation of laws through the Council of Common Interests (CCI) to effectively facilitate investors and promote ease of doing business.
Pakistan has already chalked out a $1.9 billion funding plan to execute the Reko Diq copper and gold mining project. Total project funding has been estimated at $4.297 billion.
Of the total, the share of state-owned enterprises' special purpose vehicle (SPV) will be $1.194 billion and that of the government of Balochistan SPV $717 million, according to the definitive agreements for the Reko Diq mining project in Chagai, Balochistan.
Balochistan's contribution will be funded by the government of Pakistan.
According to a plan, in case debt financing is raised, Pakistan's government will provide a back-to-back guarantee for the government of Balochistan SPV shareholders' pro rata share under any project finance facilities prior to the execution of financing documents with approval of the Economic Coordination Committee (ECC).
With the approval of federal and provincial cabinets, the government of Pakistan and the government of Balochistan had entered into an out-of-court dispute settlement with Tethyan Copper Company, Australia (TCCA) in respect of the Reko Diq copper and gold project.
They reached the agreement after adverse arbitrary awards by the International Centre for the Settlement of Investment Disputes (ICSID) and due to expected similar awards from the International Chamber of Commerce (ICC) against Pakistan's government and the Balochistan province, respectively.
These arrangements include the development of mineral resources under a reconstituted Reko Diq project comprising a joint venture among Barrick Gold Corporation, the government of Balochistan and state-owned enterprises namely Pakistan Petroleum, Oil and Gas Development Company and Government Holdings (Pvt) Limited.
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