Mining sector: Vast reserves of minerals provide solid foundation: OGDCL

ISLAMABAD: Pakistan is blessed with an abundance of mineral resources that hold immense potential for economic growth and industrial development.

According to OGDCL the country’s vast reserves of minerals, including coal, copper, gold, iron ore, chromites, and precious stones, provide a solid foundation for the mining sector to thrive and contribute in the country’s economic development.

Despite its huge potential, the mineral sector currently contributes around 3.2 per cent to the country’s GDP, with exports accounting for only 0.1 per cent of the world’s total. However, with increasing exploration, foreign investment, and infrastructural improvements, Pakistan’s mining industry is poised for significant expansion.

Pakistan’s mineral-rich landscape covers an outcrop area of approximately 600,000 square kilometers. With 92 known minerals, 52 of which are commercially exploited, Pakistan produces an estimated 68.52 million metric tons of minerals annually. The sector supports over 5,000 operational mines and 50,000 small and medium enterprises (SMEs), providing direct employment to 300,000 workers.

Some of the country’s most notable mineral reserves include the world’s second-largest salt mines, the fifth-largest copper and gold deposits, and significant coal reserves. Furthermore, the country holds vast quantities of bauxite, gypsum, and precious stones such as ruby, topaz, and emerald, which offer considerable export potential.

Globally, mineral resources play a crucial role in economic development. Many developed countries, including China, Italy, Turkey, Spain, and Brazil, have effectively leveraged their mineral wealth to fuel industrial growth, increase employment, and enhance per capita income.

Pakistan’s mineral sector holds similar promise. With strategic planning and investment, the country can improve trade, generate employment, and facilitate infrastructure development, ultimately accelerating economic progress. Enhanced mineral exploration and value addition can significantly increase revenue. Many countries import raw minerals, refine them, and export value-added products. Pakistan has the potential to follow suit by establishing mineral processing and refining industries, leading to higher-value exports and reduced dependency on raw material exports.

Copyright Business Recorder, 2025