ISLAMABAD: Minister for Petroleum Ali Pervaiz Malik said on Thursday that the government was working to create an enabling ecosystem to help the companies running Reko Diq and Saindak to operate in challenging terrains with minimal infrastructure.

Speaking at the Pakistan Business Forum (PBF) session on ‘Unlocking Pakistan’s Untapped Mining Resources for National Wealth’, Mr Malik said one of the biggest challenges was that, under the Constitution, mineral resources were a provincial subject.

As a result, investors are facing multiple sets of legislation, rules, and licensing requirements across provinces.

He said the government had tried to harmonise the regulatory framework, standardise ESG and safety standards, encourage provinces to adopt a unified framework while retaining ownership, develop a consistent fiscal regime that accounts for sector-specific risks, and create an environment conducive to capital inflow. He hoped that once operational, Reko Diq would set a benchmark for others to follow.

The petroleum minister stated that after adjusting for the years of litigation, it had taken decades to reach the point where Pakistan now had the single largest private-sector financial close of $3.5 billion.

Minister notes investors struggle due to provinces having different laws, rules, licensing regimes

Referring to the mineral potential value of $7 trillion, Mr Malik said it was based on geologists’ estimates of mineral endowments. “It is just potential, it has neither been measured nor indicated as a proven resource estimate, he said,

Adviser to Geological Survey of Pakistan Dr Hamid Ashraf said the fiscal regime must be benchmarked against world-leading mining jurisdictions such as British Columbia, Western Australia, Indonesia, Kazakhstan, Chile and South Africa. He noted that Pakistan had previously operated with six different mining policies, eight Acts and 36 different rules and regulations, a system in which no investor could navigate effectively.

The official said that Reko Diq was progressing well and would serve as a ‘torchbearer’. Pakistan also had significant resources in Saindak, Duddar, Chiniot, Kohistan, and Nagarparkar.

Speaking at the session, Reko Diq Mining Company (RDMC) Country Manager Zarrar Jamali said RDMC was currently in the construction stage and that feasibility studies, environmental and social impact assessment, and baseline studies had been completed.

In her closing remarks, Pakistan Business Council (PBC) Chairperson Dr Zeelaf Munir said: “Pakistan’s economic future depends on resilience, reform and responsible partnership. No institution can deliver progress alone; all stakeholders need to believe in business.

Published in Dawn, November 28th, 2025