Pakistan’s mining sector is steadily gaining momentum and has the potential to become one of the country’s key growth engines. With untapped mineral wealth, major international partnerships, and new projects across the country, mining is not only fueling GDP growth but also creating thousands of jobs and new export opportunities. This blog highlights the insights covered in our video on the Future of Pakistan’s Mining Sector and explores what lies ahead for the industry.
Mining on the Rise
In Fiscal Year 2023–24, Pakistan’s mining sector grew by 4.85%. This growth represents a strong rebound from the previous year’s dip, proving that the industry is back on track. Today, mining contributes 13.6% to Pakistan’s GDP, highlighting its central role in shaping economic stability.
Untapped Mineral Wealth
Pakistan is home to some of the world’s richest untapped reserves of copper, gold, lithium, and cobalt. These minerals are critical for clean energy, electric vehicles (EVs), and modern electronics, positioning the country as a future supplier of essential raw materials. One of the most significant recent developments is the start of lithium exploration in the Eastern Hindu Kush. With global demand for lithium rising, this could become a breakthrough for Pakistan’s clean tech and EV supply chain.
HUBCO and BYD’s Lithium & EV Plans
The Hub Power Company (HUBCO) has announced plans to step into lithium mining and battery production in collaboration with Chinese EV giant BYD. This partnership aims to produce 50,000 electric vehicles annually, a move that could place Pakistan on the EV production map.
Reko Diq: A Game-Changer for Copper and Gold
At Reko Diq in Balochistan, an estimated 5.9 billion tonnes of copper-gold reserves lie underground. The project is led by Barrick Gold, which is expected to generate $74 billion over 37 years. Importantly, the province of Balochistan will receive a 25% share of the project’s proceeds, ensuring local benefit. The project is set to create 10,000 construction jobs and 6,000 permanent jobs, making it one of the largest contributors to employment in the sector.
Expanding Investments Across Pakistan
Beyond Reko Diq, other mining projects are making headway. These include Manara Minerals, China’s Saindak expansion, and the discovery of gold worth PKR 800 billion in Attock in 2025. Collectively, such projects are poised to significantly boost Pakistan’s GDP and expand its mineral export base.
Pakistan’s Gemstone Industry
Pakistan is ranked among the top five gemstone-producing countries globally. The country produces 800,000 carats of ruby and 87,000 carats of emerald annually. The Pakistan Gems and Jewellery Development Company (PGJDC) has played a critical role in promoting this industry. Since PGJDC was launched in 2003, exports have grown from $47 million to $1.2 billion. Government incentives such as duty-free import of raw materials have further supported growth and expanded jewellery exports to international markets.
Khewra: The World’s Oldest Salt Mine
Pakistan also holds vast reserves of salt. The Khewra mines contain 220 million tonnes of salt and are recognized as the world’s oldest salt mine. Private companies like ABM Dynasty and Al Ghani International are at the forefront of producing and exporting pink salt products to Europe, the Gulf, and Asia. Between November 2023 and October 2024, Pakistan exported salt to 125 countries.
Towards a Sustainable Growth Engine
From lithium exploration and EV manufacturing to copper-gold mining and gemstone exports, Pakistan’s mining sector is diversifying rapidly. With projects like Reko Diq and HUBCO–BYD collaboration, the industry is poised not only to drive GDP growth but also to create jobs, attract global investors, and enhance exports. The big question remains: Can mining become Pakistan’s engine for sustainable growth? If current trends continue, the answer leans towards a confident yes.
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