Pakistan may not be new to mining, but it is the first time that a Minerals Investment Forum has been held, with a national policy also being announced for the first time. Clearly, the entry of Barrick Gold into Pakistan proved a game changer. Its investment in the Reko Diq gold and copper project endured a number of hiccups, but served to put Pakistan firmly on the map as an area with much potential for investment. After the Barrick Gold-Riko Diq saga, there was the groundwork laid by the Special Investment Facilitation Council, which includes mining as one of its areas of interest. The Forum was thus an entirely appropriate forum for Barrick Gold CEO Mark Bristow to say that the project should start production in 2028, with 240,000 tons of copper and 300,000 ounces of gold. As Mr Bristow said, there will be much more to explore and invest.
Economists have noted that resource exploitation is not necessarily beneficial, as it drives capital away from productive sectors. However, here the beneficiaries are supposed to be the governments. For example, the Reko-Diq project is supposed to bring revenue for the Balochistan government, as well as the Pakistan government. The real challenge will be to ensure that all are benefited. While there should be no bans, or quotas, the employment benefit should go to the local population. It should not be forgotten that Balochistan and KP, the provinces which stand to gain most from the exploitation of Pakistan’s mineral wealth are both in the throes of militant violence. Militants, but especially separatists (as in Balochistan), are attracted to minerals, because they provide easy anonymous revenue. Islamic State militants traded in Iraqi crude during their short lived insurgency. However, foreign corporation\s can fund insurgencies, the most famous being that in Biafra half a century ago, when the attempt to separate an Ibo state from Nigeria would have ‘coincidentally’ taken out its oil-producing areas.
Pakistan is at a cusp of human development. While such items as gold, copper, semi-precious stones and marble will remain valuable, rare earths, of which Pakistan has plenty, like lithium, are increasingly important in this digital and electronic age. As their demand increases, their deposits will not only gain directly in value, but deposits previously not economically feasible, will become attractive. COAS Gen Asim Munir’s assurance to the Forum that the Army would provide security for all operations was thus relevant and welcome. It is also up to the government to provide the kind of political stability that will allow foreign investors to work in peace.
