Pakistan to Attract Foreign and Local Investment for Mineral Extraction

Posted by: IIPS Category: Daily Insights Tags: Comments: 0

Approximately 21% of Pakistan’s Gross Domestic Product (GDP) is generated by the mining industry. According to the Economic Survey of Pakistan, the mineral sector contributes 2.5% to the GDP of Pakistan. Even though Pakistan has huge reserves of minerals and demand is high, its mineral industry continues to lag far behind the global mineral market.

In comparison to its neighbours, Pakistan exports relatively few minerals. Although Pakistan has mineral resources similar to or greater than these countries, it lags behind in its extraction and export due to improper planning and execution. Pakistan’s total mineral exports in 2019 were $1.13 billion, and its total mineral imports were $5.42 billion. As a result, Pakistan’s current account deficit increases.

In order to strengthen the mineral sector, better planning and development are needed. It is necessary to invest in infrastructure and provide technical input to local miners.

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IMARAT Institute of Policy Studies

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