Pakistan’s mining sector seen as key driver of $8bn

September 18, 2025 (MLN): Pakistan’s mining industry has the capacity to dramatically expand its role in the national economy, with annual revenues projected to surge from the current $2bn to between $6bn and $8bn by 2030.

Speaking at the Natural Resources and Energy Summit 2025, Shamsuddin A. Shaikh, Chief Executive Officer of National Resources Ltd (PSX: NRL), highlighted the sector’s underperformance despite Pakistan’s location on one of the richest mineral belts in the world.

Currently, the industry contributes just 0.15% to global mineral output and 2–3% to the domestic GDP. Of the 92 documented minerals in the country, nearly 90% remain unexplored.

“This is the right moment for Pakistani investors to step forward,” Shaikh said. “If we do not move quickly, foreign companies will capture the opportunities that should be ours. Joint ventures and partnerships led by local firms can generate jobs, wealth, and long-term stability.”

Several high-profile projects are already in motion. The Reko Diq copper and gold mine alone could deliver $4–5bn annually, while the nearby Siah Diq deposit is expected to contribute $1–2bn.

Expansion of the Thar coalfield may add around $200m, with barite, lead, and zinc ventures providing a further $100m.

Collectively, these initiatives are projected to add billions of dollars to the national economy within the next five years. Beyond 2030, further exploration in the Chagai region could unlock another $5–10bn in yearly revenues.

Shaikh emphasized the broader social impact of responsible mining, noting that the industry could play a transformative role in poverty alleviation by creating employment, building housing, and expanding access to healthcare and education in remote areas.

Other speakers at the summit echoed the call for decisive action. Hassan R. Muhammadi, founder of Fidelity Insurance Brokers, emphasised the mining and energy sectors’ importance for economic growth, energy security, and foreign exchange earnings.

He assured participants that Pakistan’s insurance industry is prepared to back both local and international investors with specialised risk coverage.

Fidelity Insurance CEO Khurram Ali Khan added that robust insurance frameworks are essential to keep large-scale projects on track in volatile conditions. “Insurance provides the stability and confidence that investors need,” he said.

Muhammad Sohail Tabba, Chairman of Lucky Cement, said the sector could bring significant socio-economic uplift, especially in rural areas.

By pairing mineral development with investment in education and skills training, he argued, Pakistan could foster prosperity, stability, and peace in underserved regions.

Nevertheless, industry experts cautioned that weak governance, inconsistent policies, and climate-related challenges could limit the sector’s potential.

They stressed the need for stronger regulatory frameworks, investment in human capital, and the adoption of new technologies including artificial intelligence to support sustainable growth.

The summit gathered policymakers, business leaders, insurers, and international specialists to discuss how mining and energy can become central to Pakistan’s economic transformation.

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