Mines & minerals: Emerging sector attracting noted foreign entities, investors: Makda

KARACHI: Pakistan’s’ emerging sector for natural resources, particularly mines and minerals are attracting renowned foreign entities and investors, It will also boost opportunities for the insurance sector, helping clients pursue ambitious projects by managing risks sustainably.

Talking exclusively to Business Recorder, Faisal Makda Chief Operating Officer (COO) Fidelity Insurance Broker (FIB) said the insurance sector anticipates substantial opportunities in the future to provide a reliable safety net and enhance investor confidence in Pakistan’s multi-billion-dollar mines and minerals industry.

Pakistan is richly endowed with mineral resources and renewable energy potential, offering a foundation for long-term economic growth and sustainable development. The country’s reserves of critical metals, rare earth elements, gemstones, salts, and industrial minerals position it as an emerging player in global supply chains.

Reko Diq in Balochistan ranks among the world’s largest undeveloped copper–gold projects, with probable reserves of about 7.3 million tonnes of copper and 13 million ounces of gold. Another major mine in Balochistan is the Duddar mine which contains approximately 50 million tonnes of lead-zinc ore.

Despite this potential, mining’s contribution to Pakistan’s economy is minuscule. The mining sector only adds about 2–3 percent to the GDP and mineral exports are around USD0.5 billion which is only 0.1 percent of the global mineral trade of USD401 billion.

“Insurance entities serve as a cornerstone in maintaining the bankability of billion-dollar projects, reinforcing the confidence of global investors, and ensuring operational continuity even in volatile environments. By stabilizing cash flows and safeguarding against unforeseen disruptions, insurance provides the essential foundation for translating strategic vision into tangible outcomes,” he added.

Explaining about his company’s plan, COO FIB said that Fidelity Insurance Brokers (FIB)-Lockton stands at the forefront of Pakistan’s energy insurance market, specializing in renewables, power, mining and energy sectors. As these sectors emerge as key engines of national growth, FIB delivers not just insurance, but confidence, resilience, and long-term sustainability.

Through strategic risk management, global partnerships, and innovative coverage structures, FIB will ensure that these strategic projects are not just protected but positioned to drive sustainable national progress in future.

Faisal Makda COO FIB concluded that across the world, cutting-edge risk solutions are reshaping how industries grow, and Pakistan is no exception with parametric insurance now shields renewable projects from output shortfalls linked to weather variations.

In collaboration with Lockton, FIB is hosting a Natural Resources & Energy Summit 2025 on 17 September to be taken place at a local hotel in Karachi. This flagship event will bring together energy leaders, international insurers, financiers, and global risk experts to share insights, address challenges, and unlock new opportunities.

Copyright Business Recorder, 2025