Pakistan’s great shift to minerals: The gold in our dust

The world’s axis has shifted, a geological event that warrants worry – beckoning humanity to contribute towards the stability of the planet. Within that vein, three significant changes in Pakistan have brought in a much-needed shift – a formative approach to enable this country of 240 million people to move towards prosperity.

These changes have come about as empowered initiatives for the development of trust in the country’s potential. All three have come silently and herald good times for Pakistan.

The first is the establishment of the Special Investment Facilitation Council (SIFC) and its role as a one window of facilitation for investors. They have proactively galvanized dormant projects and have initiated many new ventures. They seem well-positioned to bring Pakistan back on the map as a strong potential hub for Middle East and Chinese business interests.

The second event is the Pakistan Minerals Summit in Islamabad, held earlier this month. Mining is part of the five areas of development on SIFC’s agenda and the Summit proved to be a great start to turning ‘dust to development,’ with a focus on Reko Diq as it possesses almost $6 trillion worth of potential.

SIFC’s vision is clear and fast paced. The proactive and focused contribution of army chief General Asim Munir hasenhanced investment opportunities. However, I have two primary concerns; one for the civil elected leadership to become competent partners in the overall investment climate, and the second for the downstream industries for minerals, so that we can look at a future where we may hold onto our gold dust and trade in finished products, for a bigger profit margin and stronger control of our resources.

The third event, is the appointment of Senator Anwaar-ul-Haq Kakar as Pakistan’s caretaker Prime Minister. He is well-educated, humble and a true visionary, representing the golden sands of the largest province of Pakistan. With Senator Kakar at the helm of affairs as the interim Prime Minister, Balochistan’s prospects could get translated into expedited development via support for investors in mining and minerals.

The cost that Pakistan paid was worth more than its weight in any gold scattered in its dust.

Muhammad Azfar Ahsan

Balochistan represents almost 44% of Pakistan’s land. As part of the rich Tethyan Metallogenic Belt (TMB), it literally holds gold in its dust. This rich mineral reserve stretches all the way to the North before entering China, endowing Pakistan with trillions of dollars’ worth of minerals. We have the world's second-largest salt mines, fifth largest copper and gold reserves, huge coal deposits, and vast crude oil reserves, yet our mineral sector's performance has been underwhelming, with exports accounting for a mere 0.1% of global exports and 2.5% of Pakistan’s GDP.

The Pakistan Minerals Summit constitutes a consolidated step towards translating Pakistan's mining potential into actionable strategies. It brings the much-awaited collaboration of Barrick (Barrick Gold Corporation) and the Saudi government with the Pakistan government. And with the caretaker Prime Minister Kakar in office, we can look at Balochistan becoming a major conduit for Pakistan’s success.

Mark Bristow, CEO at Barrick Gold, in frank conversation, has acknowledged the rich prospects of Balochistan, quoting Lewis Carol’s ‘If you don’t know where you are going, any road will do’ as a wake-up call to realize our mining potential and the need for socio-political dynamics to synchronize with the development requirements of the mining industry.

As Minister of State and Chairman Board of Investment, I had many meetings with the honorable Khalid Al-Falih, Minister of Investment of the Kingdom of Saudi Arabia (KSA). We are fortunate to count him as one of the most ardent friends of Pakistan. Time and again, I was honored to communicate his keen interest for partnership with Barrick in Reko Diq to all stakeholders in Pakistan, and played a strong role in the developing landscape of FDI.

Engineer Khalid bin Saleh Al-Mudaifer, Vice-Minister of Mining Affairs, Ministry of Industry & Mineral Resources, KSA, was at the Pakistan Minerals Summit earlier this month, representing Saudi interests as collaborators for the Reko Diq mining project and I felt grateful to see the idea come to fruition.

Jacques Van Tonder, Chief Development Officer, Rio Tinto, mirrored my thoughts when he referred to his life in South Africa and mining dust being in his veins. He referred to the Oyu Tolgoi in the South Gobi region of Mongolia as one of the largest known copper and gold deposits in the world and compared Reko Diq as an equally powerful medium to change the prospects of Pakistan.

With good examples like that of Thar Coal, and the signed deal for the ARAMCO Project, we are witnessing how rising concerns over investments vs. imports are spurring investments to help bring the world to sustainable dynamics. We are, as yet, not strongly positioned in this equation of transition, but we can be.

The shift has given me hope. Pakistan, in the last few months, faced the most critical of hours with default on the horizon and instability across the landscape. Devaluation was not just of the currency; it was of the morale of the nation.

Now, the stakeholders must ensure that no repeat of judicial intervention occurs as it did in the past, costing Pakistan billions of dollars. At the end of the day, money can be made again, but lost years of probable happiness and growth can never be compensated. The cost that Pakistan paid was worth more than its weight in any gold scattered in its dust.

- The writer is a former Minister of State and Chairman Board of Investment. He can be reached at @MAzfarAhsan