Minerals sector to transform Pakistan’s economy: Aurangzeb

Finance Minister Muhammad Aurangzeb has described the minerals and mining sector as a potential game-changer for Pakistan’s economy, saying it could play a major role in achieving sustainable growth, boosting exports and attracting foreign investment.

Addressing the two-day Pakistan Minerals Investment Forum 2026 in Islamabad, Aurangzeb said Pakistan needed to avoid repeating the pattern of temporary, consumption-driven economic growth followed by balance of payments difficulties. He stressed that the country’s future growth must be sustainable and export-oriented.

The forum has brought together international investors, government representatives and provincial leaders to explore investment opportunities in Pakistan’s mineral resources.

Aurangzeb said the government was pursuing comprehensive structural reforms and remained committed to implementing them. These included privatisation, reforms in public finances, pensions and tariffs, alongside efforts to promote a cashless economy.

He said 26 government entities had been transferred to the Privatisation Commission, describing the privatisation of Pakistan International Airlines (PIA) as particularly important for building investor confidence.

The minister said the government wanted to ensure that reforms continued beyond the initial economic stabilisation phase. He noted that Pakistan had experienced economic contraction before recording growth of around 2% and 3% in subsequent years. Growth in the previous fiscal year remained slightly below 3.7%, while the government had set a target of 4% for the current fiscal year.

He cautioned that growth driven by excessive liquidity and domestic consumption could create pressure on the current account and eventually trigger another balance of payments crisis.

Aurangzeb said the government was determined to break this cycle by strengthening exports and productive sectors. He pointed to incentives introduced in the June budget and said financing rates for exporters had been reduced to between 4.5% and 6%, regardless of the prevailing policy rate of 12%.

He also identified information technology exports as an important contributor to economic growth, expressing confidence that IT export services could reach approximately $5 billion during the current fiscal year.

Discussing foreign direct investment, the finance minister said macroeconomic stability was essential to attracting international investors. He said investors needed confidence that they could bring capital into Pakistan, repatriate profits and dividends, and withdraw funds without unnecessary administrative hurdles.

He stressed that domestic investor confidence was equally important, saying international investors would be more willing to enter the market when local businesses demonstrated trust in the country’s economic direction.

In this regard, he highlighted the PIA privatisation process, saying two major business groups had submitted bids worth nearly $1.2 billion. One consortium had secured the bid and was moving towards transforming the national airline.

Turning to mineral development, Aurangzeb said a single mining project was expected to generate around $2.8 billion in export proceeds once commercial operations began. Although the project had faced delays, he expressed confidence in its financing arrangements.

He said the project had secured the largest syndicated financing in Pakistan’s history, with financial institutions remaining committed to its completion.

The minister assured investors that the Ministry of Finance would provide the necessary support and facilitation to develop the sector, describing minerals and mining as one of the most important drivers of Pakistan’s future economic transformation.

Deputy Prime Minister and Foreign Minister Ishaq Dar also highlighted Pakistan’s mineral potential, saying the country was at a critical stage in its economic journey and needed to diversify its exports.

Welcoming more than 60 international participants, Dar said Pakistan was seeking to utilise its geological resources to strengthen the economy and expand its international investment partnerships.

He described Balochistan as central to the country’s mineral future, particularly as the global transition towards clean energy continued to increase demand for copper and other critical minerals.

Dar stressed that environmental protection must remain an integral part of mineral development. He said the Pakistan Investment Policy 2023 provided safeguards for investors and reaffirmed the government’s commitment to improving the business environment.

He also highlighted Pakistan’s strategic partnership with China and said provincial governments were offering investment opportunities to international businesses.

Punjab Chief Minister Maryam Nawaz said the province had increased revenue from its Mines and Minerals Department fourfold, from Rs10 billion to Rs40 billion, over the past two and a half years.

She said Pakistan possessed considerable mineral wealth that could be converted into economic opportunities through exploration, investment and value addition.

Maryam highlighted Punjab’s reserves of emeralds, marble, granite, gold, gemstones, copper, pink salt and rock salt. She also pointed to the iron ore deposits in Chiniot, estimated at 261.5 million tonnes, saying the resource could support domestic steel production.

She said the provincial government was encouraging the processing of pink salt into finished products instead of exporting it in raw form. Interest-free financing was being offered to miners to support value addition and increase export earnings.

The chief minister also referred to potential placer gold deposits in rivers around Mianwali and Attock. She said surveys were being conducted to assess the available quantities and determine whether associated deposits contained rare earth elements and other valuable minerals.

Maryam invited international companies to work with Punjab on exploring these resources, saying the provincial government was introducing measures to make investment easier.

She said the government was offering one-window facilities, concessional land leases and financing of up to Rs5 billion under different investment schemes. Interest costs on eligible financing would be covered by the provincial government.

She added that investors could also benefit from support for solar energy installations and concessions on customs duties in designated industrial estates, including the mineral processing zone in Quaidabad, Khushab.

The Quaidabad zone was offering land under 15-year lease arrangements at nominal monthly rents, with the possibility of extension. The government was also providing financing facilities for export-oriented businesses, including zero-mark-up loans of up to Rs100 million and loans carrying concessional rates for larger investments.

Maryam said a separate Rs5 billion financing programme had been established to support pink salt processing. Under the scheme, eligible investors could obtain interest-free loans of up to Rs50 million with a five-year repayment period.

She described the initiative as commercially attractive, citing an estimated return of 55%, and said feasibility studies were available for projects involving rock salt, iron ore, placer gold and construction materials.

The chief minister said Punjab was also improving road infrastructure to facilitate industrial and mining activities. She added that licensing, bidding, renewals, work orders and other mining-related procedures had been digitised to improve transparency.

Drone-based monitoring was also being introduced to strengthen oversight. Maryam assured foreign investors that the provincial government would protect their security and investments while ensuring a supportive business environment.

Sindh Chief Minister Murad Ali Shah called on international investors and technical experts to visit the provinces and explore opportunities directly rather than limiting their engagement to Islamabad.

He said Sindh was working on plans to convert coal into fertiliser and gas, expressing hope that progress on both initiatives could be made within the next year.

Murad also highlighted promising lithium reserves in the province, saying he had discussed their potential with the leadership of the Oil and Gas Development Company. He said the provincial government wanted the deposits to be properly explored over the coming year.

Balochistan Chief Minister Sarfaraz Bugti outlined plans to advance oil and gas-related projects, including developments involving Saruna and Sui Fertiliser cities.

He said the provincial government also intended to digitise its minerals department before July next year to improve administrative efficiency and facilitate investment.