Faiza Tehseen

Exploitation of strategic minerals, including graphite, cobalt, nickel, lithium, and other rare earth elements, through modern means could be a game changer for Pakistan’s economy.

“Pakistan has to secure critical investments from international investors through robust regulatory and administrative mechanisms,” stressed Abdul Bashir, chief geologist with Balochistan-based Koh-e-Daleel Mineral Mining Company Limited. Speaking to WealthPK, he said, “Pakistan can produce a number of industrial and strategic products by leveraging cleaner technologies.”

However, he said mining and processing of such minerals was a major financial challenge for Pakistan, and to overcome this, the country has to come up with investor-friendly policies. Bashir said: “Rare earth elements involving strategic minerals are used in making batteries of electric vehicles, wind turbines, and smartphones, while nickel and cobalt are indispensable for energy storage and aerospace industries.” 

He said most developing countries blessed with critical or strategic minerals struggle to attract adequate investments for their mining and processing due to multiple reasons, including lack of incentives and tax relief, regulatory uncertainty, inadequate infrastructure and logistics, limited local processing capabilities and inappropriate safety measures, political instability, and environmental risks.

Bashir said: “These factors discourage global investors, who tend to invest in such projects with stable returns. The government can offer multi-year tax holidays to improve project viability and reduce the upfront financial burden on investors.” “Projects aligned with sustainability standards can also access green bonds and climate funds, particularly when they are strengthened by environmental stewardship and transparent community engagement,” he underscored.   

The geologist noted that the next economic growth pivots would be shaped by those countries which strategically attract investments to tap their mineral wealth. Meanwhile, speaking to WealthPK, Imran Babar, a miner and geologist, said: “Pakistan is rich in strategic mineral sources, but the potential lies untapped due to lack of funding.” “The government should attract foreign investors to tap its vast mineral potential. It should also offer incentives to local investors to set up modern mining and processing units,” Babar emphasised.

Credit: INP-WealthPk