ISLAMABAD:
Pakistan is taking part in its trump card in a possible minerals take care of the US. The administration of US President Donald Trump has proven eager curiosity in two crucial areas – digital forex and minerals – and that is the place Pakistan is working with them.
However, China – the world’s second-largest economic system and a significant rival of the US in each financial and political spheres – has been creating since lengthy the Saindak copper and gold mining challenge. Nonetheless, it isn’t identified how a lot success has been achieved. Just a few months in the past, Pakistan hosted a minerals convention, drawing participation from a number of international locations and alluring funding in potential initiatives. Beijing and Washington each are eager to use the untapped mineral sources of Pakistan however to this point, the US has been extra energetic in a bid to clinch profitable offers. Pakistan’s authorities believes that the nation has minerals potential value $8 trillion.
Earlier, the US signed a take care of Ukraine for a share in uncommon earths and different minerals, the place it demanded a $500 billion slice of minerals in change for support.
Later, it revised the settlement, saying that future American army help to Ukraine can be linked to US funding in a joint reconstruction fund that might pour cash into Kyiv’s pure sources.
Consultants consider that within the case of Pakistan too, the US will ask for an enormous share in copper and gold mining initiatives. Critics, nevertheless, argue that mineral-rich nations haven’t benefitted a lot; moderately the businesses extracting minerals have reaped huge dividends.
The federal government is searching for companions within the Reko Diq copper and gold challenge in Chagai, Balochistan, the place, in accordance with officers, the US administration appears least however Saudi Arabia is keen to hitch fingers.
The federal government has awarded one other mining space on the Reko Diq belt to the Chinese language firm that was already working in Saindak. On this backdrop, the federal government needs to be weighing proposals from each Washington and Beijing.
Consultants are of the view that Pakistan must deal aspect by aspect with these international locations for extracting its huge mineral deposits that would spark an financial turnaround. It has just lately acquired a $5 billion provide for the multibillion-dollar Reko Diq challenge.
Funding commitments have been acquired from overseas donors and the quantity is greater than the funding required for Reko Diq, which is estimated at $3 billion. The donors embody the Asian Growth Financial institution, Islamic Growth Financial institution, Worldwide Finance Company and US Exim Financial institution. Growth companies from Germany and Denmark have additionally provide you with financing proposals.
Whereas financing presents are trickling in, the federal government ought to execute different initiatives as nicely, along with Reko Diq, to faucet the complete potential of copper and gold reserves within the nation.
Pakistan is blessed with ample mineral sources that maintain immense potential to gasoline financial development and industrial growth. The huge reserves of coal, copper, gold, iron ore, chromite and treasured stones present a strong basis for the mining sector to thrive and contribute to speedy financial progress.
Regardless of its large potential, the mineral sector presently contributes round 3.2% to the gross home product (GDP), with exports accounting for a meagre 0.1% of the world’s complete. Nonetheless, with rising exploration, overseas funding and infrastructure enchancment, the mining trade is poised for important growth.
Pakistan’s mineral-rich panorama covers an outcrop space of roughly 600,000 sq. kilometres. With 92 identified minerals, 52 of that are commercially exploited, Pakistan produces an estimated 68.52 million metric tons of minerals yearly. The sector helps over 5,000 operational mines and 50,000 small and medium enterprises (SMEs), offering direct employment to 300,000 employees.
A number of the nation’s most notable mineral reserves embody the world’s second-largest salt mines, the fifth-largest copper and gold deposits and important coal reserves. Moreover, Pakistan possesses huge portions of bauxite, gypsum and treasured stones corresponding to ruby, topaz and emerald, which can assist achieve appreciable foothold in abroad markets.
The federal government wants funds, know-how and experience of overseas corporations to use the minerals. The time is ripe for partaking in significant negotiations with China, the US and different international locations to extract gold and copper which will change Pakistan’s future.
The author is a workers correspondent
