The upcoming Pakistan Critical Minerals Summit in April will be a crucial milestone in showcasing these advancements and securing further investment opportunities.
The Pakistan government is in the final stages of completing the National Minerals Harmonisation Framework 2025, a landmark initiative designed to attract investment and boost the country’s mining sector. The framework, set for adoption by all provinces of the country by February 26, 2025, is expected to enhance regulatory uniformity and improve investor confidence.
The upcoming Pakistan Critical Minerals Summit, scheduled for April 9, will serve as the platform to unveil the framework. One of the major foreign investment interests in Pakistan’s mining industry comes from Saudi Arabia, which has expressed its intent to acquire a 15 per cent stake in the Reko Diq copper and gold mining project. The framework aims to solidify domestic and national policies to attract further foreign direct investment (FDI) and expand the mining sector’s economic footprint.
The Special Investment Facilitation Council (SIFC) has spearheaded this initiative, emphasizing the importance of bringing all provinces on board. Sources indicate that extensive consultations have been conducted at various levels, involving chief secretaries, chief ministers, mining associations, state-owned enterprises (SOEs), and both large- and small-scale mining companies.
Over 750 issues were raised during these discussions, of which 694 have been addressed and incorporated into the framework. As a result, two key legislative measures—the harmonised Mines and Minerals Act 2025 and the National Mineral Development Policy 2025—are now ready for implementation. These will be prominently featured at the Pakistan Minerals Summit in April.
Reko Diq Project and Investment Plan
Another crucial legislative development in progress is the Mines Safety and Health Act 2025. The federal government, in collaboration with stakeholders, is set to finalise this act and aims to secure its adoption across all provinces before June 2025. This initiative underscores Pakistan’s commitment to worker safety and sustainable mining practices.
To combat illegal mining activities, the federal government has mandated all chief ministers and the AJK prime minister to enforce strict regulations. Under the Mines and Minerals Act 2025, no foreign company will be granted a lease for raw material extraction and export, ensuring that mineral resources benefit domestic industrial growth.
Moreover, provincial governments will identify policies and laws that hinder FDI and industrial development. These regulations will be harmonised in collaboration with the Ministry of Law and Justice through the Council of Common Interests (CCI), facilitating a business-friendly environment.
Pakistan has already outlined a $1.9 billion funding plan for the Reko Diq copper and gold mining project, a venture with an estimated total cost of $4.297 billion. Of this, the special purpose vehicle (SPV) for state-owned enterprises will contribute $1.194 billion, while the government of Balochistan’s SPV will invest $717 million. The federal government will provide the necessary funding for Balochistan’s share.
Additionally, should debt financing be required, the federal government will issue a back-to-back guarantee for Balochistan’s share, subject to approval by the Economic Coordination Committee (ECC). These financial arrangements aim to ensure a smooth execution of the project and its long-term viability.
Out-of-Court Settlement with TCCA
The Reko Diq project has also seen legal hurdles, but the federal and provincial governments successfully reached an out-of-court settlement with Tethyan Copper Company Australia (TCCA). This resolution was necessary to avoid adverse arbitration awards from the International Centre for Settlement of Investment Disputes (ICSID) and the International Chamber of Commerce (ICC).
Under the revised agreement, Reko Diq will be developed as a joint venture between Barrick Gold Corporation, the government of Balochistan, and state-owned enterprises such as Pakistan Petroleum Limited, Oil and Gas Development Company, and Government Holdings (Pvt) Limited.
The finalisation of the National Minerals Harmonisation Framework 2025 is poised to revolutionise Pakistan’s mining sector. By ensuring regulatory uniformity, attracting FDI, and fostering industrial growth, this initiative is expected to position Pakistan as a key player in the global mineral market. The upcoming Pakistan Critical Minerals Summit in April will be a crucial milestone in showcasing these advancements and securing further investment opportunities.
