In a strategic effort to attract foreign investment in mining following the out-of-court settlement of the Reko Diq project, Pakistan is partnering with Kuwait to establish a $1 billion mining fund.
A Pakistani state-owned company has been chosen to lead the collaboration with Kuwait for this fund. Initial discussions between the two countries have been positive, with a Kuwaiti company expressing interest in mining metals and minerals for renewable energy use.
A detailed plan, including timelines, is expected to be presented to a joint working group to advance the fund’s development.
The Pakistani government has already established a Mineral Cell under the Petroleum Division and is actively revising the National Mineral Policy to encourage foreign investment, particularly in Balochistan’s mineral-rich areas.
Efforts are underway to draft the second version of the National Mineral Policy and update the Mines Act of 1923.
The government is also working on modifying the Provincial Mineral Concession Rules and considering amendments to the Regulation of Mines and Oilfields and Mineral Development (Government Control) Act, 1948, to make the sector more attractive to foreign investors.
Past inconsistencies in policies and regulatory challenges have been identified as major obstacles to foreign investment in Pakistan. For instance, issues surrounding the Reko Diq copper and gold mining project led to international arbitration, prompting the government to introduce the Foreign Investment Act to safeguard investors’ interests.
Pakistan is also seeking investment from other Gulf countries, including the UAE and Saudi Arabia, for its mining sector.
The recent memorandum of understanding with Kuwait, signed during the caretaker prime minister’s visit last year, includes investment cooperation and water supply projects essential for mining in Balochistan’s Chagai district.
Additionally, Pakistan’s government is in ongoing discussions with the UAE for similar collaborations in mining. A recent conference in Saudi Arabia also indicates potential investment interests in Pakistan’s mining sector.
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