Mining sector suffers for want of security

The government failure to address the security concerns of foreign companies in mining sector and federal/ provincial disputes pushed the mineral sector to negative zone in first three quarter of current fiscal year, according to Pakistan Economic Survey 2010-11.
The mining and quarrying sector is estimated to grow by 0.4 percent in 2010-11 as against 2.2 percent last year. Most of minerals witnessed negative growth rate during the period under review, the growth of coal declined by 4.0 percent, followed by chromite 39.3 percent, magnesite 60.9 percent and barites 32.6 percent, respectively
The survey states that the mineral sector is undergoing substantial change and is a victim of security environment. The mining activity is done by foreign companies and foreigners are shying away from down country fields. This has impacted growth prospects of the economy. The mining sector offers huge potential once the security environment is stabilised. Going forward we need to tap full potential of this sector.
The natural resources in Balochistan could not be explored in accordance with the potential despite implementation of national mineral policy for foreign and local companies. The obvious reason was the security situation and disputes between federal and provincial government on various legal and financial matters could not been addressed.
For example, "Prospects of Reko Diq copper and gold project can play vital role in the socio-economic development of the province", the survey states.
At present only 33 minerals are being mined by public or private sectors and produce minerals utilised in the country or exported to foreign countries.
Pakistan has a widely varied geological framework, ranging from pre-Cambrian to the present that includes a number of zones hosting several metallic minerals, industrial minerals, precious and semi precious stones. Despite negative growth, natural gas, crude oil and dolomite posted positive growth rate of 1.9 percent, 1.1 percent and 5.9 percent, respectively during the current financial year.