'Enhanced mining sector development in five years'

The government would bring about accelerated development in mining sector during the next five years to enhance share of this area in GDP from the current 1.5 percent. In order to achieve the targets, an amount of Rs 5.8 billion is planned to be spent to strengthen the mineral sector both at federal and provincial levels during the period.
The total outlay of Rs 5.8 million would be invested in the public sector during the period including Rs 1,500 million for the federal and Rs 4,300 million for provinces and special areas.
This amount is to be invested in accelerated mapping, mineral exploration and setting up of laboratory facilities, most of it spent in the provinces, Azad Jammu and Kashmir, Northern Areas and federally administered tribal areas (Fata).
The major expenditures would be on accelerating exploration, drilling and building the institutional and human capacity of the mining directorate, official sources said here on Saturday.
An investment of Rs 1,650 million is planned for building key infrastructure in the mineral producing areas of the country including all provinces and special areas.
The private sector investment in mining sector is also expected to grow by 20 percent during next five years, reaching Rs 9.26 billion in the terminal year 2009-10.
While the production of 58 exploited minerals will be enhanced, the diversification into new minerals and value addition will also be encouraged during the period. In this regard, the government has planned to increase the capacity of mining departments in all the provinces, with special focus on those provinces and areas, which are rich in minerals.
The other plan is to increase the share of coal in the energy mix from the present value of 6.5 percent to 9 percent by 2010, provide technology upgrade and business improvement programmes (BIP) to mining units through the SME upgrade programme, complete infrastructure and road network into the mineral producing areas and facilitate joint ventures between local and foreign partners.
Pakistan has some 5,000 operational mines employing nearly 300,000 workers. It also has the world's 5th largest reserves of coal in Thar (184 billion tons), but only 4.5 to 5 million tons is mined annually, mostly for use in brick kilns.
Share of coal in the energy mix has declined from 35 percent in 1958 to 5 percent in 2002, while its contribution to electricity production is less than 1 percent of the total.
The mineral sector offers enormous potential for economic growth as well as employment generation. It is expected that the mineral sector will emerge stronger and more competitive as well as become a source of several downstream industries.