By Ayesha Saba

Pakistan's mining and quarrying sector returned to positive growth in FY2025-26 after four consecutive years of contraction, signaling a revival in mineral extraction activity and highlighting the sector's growing importance in the country's economic and industrial landscape, according to the Pakistan Economic Survey 2025-26 released by the Ministry of Finance.

The survey shows that the mining and quarrying sector recorded growth of 0.4% during FY2025-26, reversing a prolonged period of decline and contributing positively to overall industrial performance. The recovery comes as Pakistan seeks to unlock the potential of its vast mineral resources and attract greater investment into the sector.

According to the survey, the improvement was driven by increased production of several key minerals, including rock salt, gypsum, limestone, iron ore, and marble, reflecting stronger industrial demand and increased mining activity.

The mining sector is an important component of the industrial economy, supplying raw materials to construction, manufacturing, energy, and export-oriented industries. Growth in mining, therefore, has multiplier effects across multiple sectors of the economy.

One of the most notable developments during FY2025-26 was the sharp increase in rock salt production. According to the survey, output more than doubled compared with the previous fiscal year, making it one of the fastest-growing mineral categories during the period under review.

Iron ore production also recorded strong growth, increasing by more than 41.5% during the fiscal year. The rise reflects growing demand from industrial users and efforts to enhance domestic resource utilization.

Gypsum production posted a substantial increase, while limestone extraction also expanded during the year. Both minerals are critical inputs for the cement and construction industries, which benefited from increased economic activity and infrastructure development.

The survey notes that marble production improved as well, supporting value-added processing industries and export-oriented businesses.

According to the Ministry of Finance, the recovery in mining coincided with a broader improvement in industrial activity. The industrial sector grew by 3.51% during FY2025-26, while large-scale manufacturing expanded by 6.11%.

The construction sector also recorded growth of 5.73%, creating additional demand for minerals used in cement production, infrastructure projects and housing development.

Pakistan possesses substantial reserves of metallic and non-metallic minerals, including copper, gold, iron ore, chromite, coal, rock salt, gypsum and precious stones. However, the sector has historically remained underdeveloped due to infrastructure constraints, limited investment and technological challenges.

The survey highlights growing policy attention toward mineral development as authorities seek to diversify the economy, increase exports and attract both domestic and foreign investment.

Mining has gained prominence in recent years, driven by renewed interest in large-scale mineral projects and efforts to develop strategic mineral resources. Policymakers view the sector as an important source of future economic growth, industrial development and export earnings.

The survey notes that mineral extraction contributes not only to industrial production but also to employment generation, particularly in remote and resource-rich regions where mining activities support local economies.

According to the Ministry of Finance, improving infrastructure, regulatory reforms, and investment facilitation measures are expected to further strengthen the sector and encourage greater exploration and development activity.

The report also points to ongoing efforts to improve geological mapping, resource assessment and institutional capacity to support sustainable mineral development.

The revival of the mining sector is particularly significant because it occurred alongside broader industrial recovery and growing investment activity. Increased mineral production helped support downstream industries while reducing reliance on imported raw materials in certain segments.

As Pakistan continues to focus on industrialization and resource-based growth, the survey indicates that mining is gradually re-emerging as an important contributor to economic activity. The sector's return to positive growth after four years of contraction highlights the potential of the country's mineral wealth to support industrial expansion, regional development and long-term economic diversification.

Credit: INP-WealthPk