Ahmed Khan Malik

The newly-established Special Investment Facilitation Council (SIFC) has placed the development of Balochistan’s mineral sector as one of its top priority areas. The civil-military SIFC is seen as instrumental in putting the economy back on track through attracting foreign investment.  Balochistan gets special significance in SIFC agenda, and its mineral sector tops this agenda to woo foreign investors through hassle-free regulatory and investment policies.  According to official documents, Pakistan, thanks to its unique geostrategic location, is endowed with huge mineral mining potential, and these minerals are available in all categories – metallic, non-metallic, industrial and rare earth metals. The country has the world’s second largest coal reserves and seventh largest copper reserves. Besides, it possesses sufficient reserves of gold. Other important minerals include silver, marble, granite, chromite, lead zinc, gemstones, dimension stones, uranium, phosphate, silica sand, gypsum, etc.

The SIFC documents show that a large portion of the country’s minerals lie in Balochistan province, and the major minerals are iron, copper, gold, silver, magnesite, lead zinc, marble, onyx, granite, barite, dolomite, gypsum and soapstone. The revival of Reko Diq Copper and Gold Project in Balochistan by Canada’s Barrick Gold speaks of foreign investors’ reinvigorated confidence in Pakistan’s mining and mineral sector.  Over 5,000 mining sites are operative across the country, employing over 300,000 people. The government is also encouraging investors to establish mining and mineral-related industries in special economic zones (SEZs) to benefit from incentives, including tax holidays. Balochistan’s Chagai district has enormous mineral potential, especially in copper and gold. Some of Pakistan’s friendly countries have also joined the Barrick Gold for exploration activities in Chagai.

Under a mineral development framework to build infrastructure to realise the mineral potential of the district, a railway track and a dual carriageway would be built from Chagai to Gwadar. Besides, a mineral port would be developed in Gwadar. Also, smelting and refining (copper and gold) industries and copper clusters for value addition would be established there. Investment in the mineral sector of Balochistan would come under the Foreign Investment Protection Act, which protects the rights of investors and adjudicates various tax concessions and exemptions to investors, including the provision of export processing zone incentives and facilitation of investment. This will also facilitate and encourage foreign direct investment in high capital-intensive industries. Pakistan also offers concessional customs duty and sales tax on import of machinery, exemption on withholding tax on dividend repatriation for initial 30 years and exemption on withholding tax on procurement of goods and services.

Credit: INP-WealthPk