Islamabad: The Special Investment Facilitation Council (SIFC) has directed the Petroleum Division to submit a summary to the Economic Coordination Committee (ECC) recommending that Pakistan’s mining sector be formally recognized as an industry, well-informed sources told Business Recorder.
At a recent SIFC meeting, participants emphasized the sector’s critical role in national economic development. Despite Pakistan’s abundant mineral resources, mining has historically remained underdeveloped, contributing only about one percent to the country’s GDP. Experts at the meeting highlighted that granting industrial status could unlock significant economic, social, and administrative benefits, including increased investor confidence, better access to financing, and enhanced infrastructure development in mining regions.
The Petroleum Division has reportedly received input from all relevant stakeholders, including the Power Division, and will now move forward with the Cabinet submission. The federal government’s facilitative role would complement provincial regulations, as mineral exploration and production—excluding mineral oil, natural gas, and nuclear substances—fall under provincial jurisdiction.
Currently, more than 5,000 mines operate across the public and private sectors, employing over 300,000 people. However, only a few large-scale projects exist, and most mining activity remains small-scale. If effectively developed, Pakistan’s mineral resources could contribute up to five percent of GDP, officials and industry representatives noted.
The All Pakistan Mines & Minerals Association has long urged the government to grant industrial status to mining, citing benefits such as easier access to bank financing, tariff concessions on machinery imports, and structured support for environmental protection, rehabilitation, and skill development.
The SIFC’s recommendation aligns with broader federal efforts to optimize the development and utilization of mineral resources, and the Petroleum Division is processing the matter under its mandate in accordance with the Rules of Business, 1973.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
