Provinces push for industrial zones to unlock mineral wealth

In a nation often defined by its agricultural exports and textile industry, a less visible opportunity lies deep beneath the surface, ie, the mineral wealth of Pakistan. Analysts now estimate that the country holds mineral assets valued up to $8 trillion, yet the sector contributes only around 3% of GDP and less than 0.1% of global mineral exports.

For decades, provinces like Punjab, Balochistan, Khyber-Pakhtunkhwa and Sindh have sat on vast deposits of gold, copper, salt, chromite, coal and gemstones, nevertheless these assets remain largely confined to raw material extraction rather than value addition and exports. As per industry analysts, without a coordinated national framework to process and commercialise these resources, this wealth continues to lie dormant.

Khadim Hussain, member of the board of directors of Pakistan Stone Development Company, said Pakistan's mineral potential could transform its economy but only through collaboration. "Governments, investors and industries must work together," he said, adding "if we just keep exporting raw materials, we lose most of the value. The focus must shift to local processing and industrial use."

He urged the government to establish special industrial zones for mineral processing in each province to attract investment, generate employment and strengthen exports. According to him, Punjab could serve as an industrial hub, while Balochistan and Khyber-Pakhtunkhwa, rich in raw materials, could drive the supply side of a national mineral strategy.

Punjab's Minister for Industries Shafay Hussain, in a recent conversation with The Express Tribune, revealed that the province is bringing a new policy to regulate mineral leases, especially for gold placers found in Attock and Jhelum.

"We are enforcing a strict lease policy for pink salt and gold placer mining," he said. "If we add value to our minerals, provinces will generate more revenue. We are also engaging Turkiye to strengthen our gems and jewellery sector, as Ankara has deep expertise in this field."

Turkiye's gems and jewellery sector is among the world's top five exporters, renowned for its craftsmanship, branding and design innovation. Partnering with such an experienced market could help Pakistan establish cutting, polishing and design hubs in Lahore or Karachi, allowing gemstones to fetch higher prices internationally.

Pakistan's mineral base is vast, with 92 known minerals, 52 commercially exploited, and annual production of 68 million metric tons from nearly 5,000 mines and 50,000 SMEs. As per different studies, these reserves include 175 billion tons of coal, mostly from Thar coalfields, along with 7,000 million tons of copper, 1,658 million tons of gold and over 10 billion tons of rock salt.

The country also holds rare earth elements (REEs) like cerium, lanthanum, neodymium and praseodymium found in Balochistan, Khyber-Pakhtunkhwa and Skardu-Chilas, with an estimated 100,000-500,000 tons recoverable.

The Reko Diq project holds 15 million tons of copper and 26 million ounces of gold, expected to generate $70-80 billion over its lifetime if managed transparently.

Despite such resources, the mining and quarrying sector, as per the Economic Survey of Pakistan, has contracted 3.4% in FY25. Industry experts warn that without processing facilities and export-oriented strategies, Pakistan will remain a raw material supplier to global markets.

"We need to move beyond extraction," Hussain said. "If we refine, cut, polish and brand our minerals here, the benefits will stay within the country, creating jobs, boosting exports and generating provincial revenue."

Experts agree that if Pakistan succeeds in creating industrial zones for processing, strengthening its lease framework and attracting expert partners like Turkey and other countries including China, the US and Australia, the mining sector could become a pillar of national growth. Provinces could not only fund their development independently but also reduce Pakistan's chronic trade deficit.

"The era of exporting raw minerals must end. Pakistan's future depends on transforming its mineral wealth into refined, branded and export-ready products," the provincial minister concluded.