Page 74 - CMA Journal (Sep-Oct 2025)

O TH ER F EATURES

Key Challenges & Solutions Ahead

While the announcement is significant, several structural and governance challenges remain:

Category Key Issues Strategic & Analytical Solutions
Policy & Update the National Mineral Policy-2013
Regulation fragmented federal-provincial regulations; harmonizing federal and provincial
inconsistent legal framework deterring jurisdictions.
investors.
for exploration, processing, and R&D in
critical minerals.
Security & Insurgency and militant attacks in Balochistan Implement digital tracking systems for
Governance and Khyber Pakhtunkhwa; illegal mining mining output to curb illegal extraction
causing revenue loss; weak contract and revenue leakages.
enforcement and transparency issues.
Infrastructure Poor transport connectivity; unreliable power Invest in renewable-powered microgrids
& Logistics supply; severe water scarcity; high operational and desalination plants to overcome
and logistics costs. energy and water shortages.
Introduce logistics cost-sharing schemes
with private operators to improve mineral

Technical & Incentivize joint ventures for midstream
Industrial processing facilities; dependence on foreign processing (REEs, copper, lithium) via
Capacity toll-processing; lack of advanced metallurgical technology transfer agreements.
expertise.
Environmental Mining in ecologically fragile and water-scarce
& Social Risks community engagement; attract ESG-conscious investors.
risk of local resentment.
Geopolitical & Balancing partnerships between U.S. and Develop strategic stockpiles of critical
Strategic Risks China under CPEC; risk of political tension and minerals for supply-chain resilience.
investor uncertainty.

The government has launched initiatives such as the harmonized national mineral policy, transparent
Pakistan Mineral Investment Forum and the National regulations, strengthened provincial coordination, and
Mineral Harmonization Framework to attract investors technology-enabled, ESG-aligned refining. With effective
and streamline regulations. Projects under CPEC and the institutional reform and strategic partnerships, Pakistan
growing interest from Saudi Arabia reflect increasing can transform its mineral wealth into a long-term pillar of
international engagement in the sector. However, policy economic growth, industrial diversification, and global
inconsistency, weak regulation, and infrastructure gaps competitiveness.
remain major obstacles, as underscored by the USD 5.84
Building on this domestic potential, the strategic
billion Reko Diq arbitration case. To unlock its full
partnership with the United States provides a framework
potential, Pakistan must adopt a transparent and
for sustainable exploration, processing, and refining,
coordinated mineral policy focused on provincial
leveraging technical expertise and market access. By
collaboration, institutional reform, and sustainable
prioritizing minerals with the highest strategic and
governance, turning its vast mineral endowment into
economic value, this collaboration strengthens bilateral
long-term national prosperity.
ties and positions Pakistan as a responsible contributor to
Conclusion global mineral supply chains and the clean energy
transition. This model also sets a benchmark for equitable
Pakistan stands at the threshold of a mineral-driven and sustainable resource development that can guide
transformation, with vast deposits of copper, gold, future international cooperation.
lithium, cobalt, and rare earth elements offering
This article is prepared by Maiyra Ahmed, Assistant Director,
significant potential for industrial growth and the green
R&P, under the guidance of Shahid Anwar, Senior Director R&P.
energy transition. Realizing this potential requires a
72 ICMA’s Chartered Management Accountant, Sep-Oct 2025