Pakistan’s Mineral Exports Could Hit $6–8 Billion Annually With Value Addition: Ahsan Iqbal

ISLAMABAD — Pakistan’s mineral sector holds immense promise, and with a strategic shift toward value addition, the country could see its mineral exports surge to between $6 billion and $8 billion per year by the end of the decade, Federal Minister for Planning and Development Ahsan Iqbal said on Wednesday. Speaking at the Pakistan–China Mineral Cooperation Forum in Islamabad, Iqbal outlined a vision for transforming Pakistan’s historically under‑utilised mineral wealth into a linchpin of export‑led growth.

From Raw Exports to Value‑Added Processing

Pakistan has long exported raw or semi‑processed minerals, earning relatively modest revenue despite abundant deposits. At present, mineral exports contribute only a small fraction of the country’s GDP — estimates suggest around 2–3 % of total economic output.

The core of Iqbal’s proposal is simple in concept but ambitious in execution: instead of sending unprocessed ores abroad, Pakistan should develop domestic processing plants, smelters, and refineries that turn raw minerals into refined, higher‑value products suitable for global markets.

Value‑added production would not only increase export earnings but also stimulate industrialisation, job creation, and technology transfer — effectively linking the mining sector with downstream industries such as metal fabrication, engineering, and manufacturing.

China as Strategic Partner

A significant theme of the forum was Pakistan’s collaboration with China. Iqbal stressed that Pakistan’s mineral‑value transformation cannot be realised without “strategic partners,” with China playing a central role.

China’s expertise in mining technology — from geological surveying and modern extraction methods to processing and refining — could help Pakistan bridge longstanding structural gaps that have hindered growth. The minister’s remarks underscored China’s importance not only as a supplier of capital and technology but as a major customer for value‑added Pakistani mineral products.

Linkage with CPEC 2.0

The mineral initiative is tightly connected with the second phase of the China–Pakistan Economic Corridor (CPEC) — a flagship bilateral project originally focused on infrastructure and energy. Iqbal articulated a shift in CPEC’s objective: to move “beyond infrastructure for its own sake” and towards productivity, export growth, and sustainable development.

Under CPEC 2.0, Pakistan plans to establish mineral‑based industrial clusters linked to Special Economic Zones (SEZs). These clusters can pool resources, reduce costs, and attract investment while creating ecosystems for processing, manufacturing, and export. Location advantages like Gwadar Port — which is being positioned as a gateway connecting mineral‑rich regions to global markets — are expected to enhance logistics and trade competitiveness.

Unlocking Pakistan’s Mineral Wealth

Pakistan is endowed with vast mineral resources. Geological surveys estimate the country has around 92 known minerals, with significant deposits of copper, gold, coal, iron ore, marble, and industrial minerals. However, only a proportion of these are currently under commercial extraction, and a large portion of the country remains geologically unmapped.

Projects such as the Reko Diq mine — one of the largest copper and gold deposits in the world — exemplify this latent potential. The Reko Diq project alone is expected to generate billions in revenue once operational, highlighting the scale of opportunity.

Despite this abundance, outdated extraction methods and limited downstream processing capacity have constrained Pakistan’s ability to capture full value from its own resources. Minerals are often shipped abroad with minimal refinement, forfeiting higher profits that come with processing.

Economic and Employment Impact

Economists and industry leaders have long noted that a robust, value‑added mining sector could significantly boost Pakistan’s economic landscape. Projections indicate that transforming mineral exports from raw to processed goods could grow annual export revenues from the current estimate of around $2 billion to $6–8 billion by 2030 — aligning with government targets for export diversification and sustainable growth.

Beyond export earnings, a thriving mineral value chain could generate hundreds of thousands of direct and indirect jobs, particularly in Balochistan, Gilgit‑Baltistan, and Khyber Pakhtunkhwa — regions rich in mineral deposits but often economically marginalised.

Challenges and the Road Ahead

While the potential is immense, the journey ahead is not without challenges. Pakistan must confront structural obstacles such as limited infrastructure, regulatory hurdles, and the need for modern technology and skilled labour. Environmental management, compliance with international standards, and community engagement are additional factors that require careful planning and investment.

The government’s push to attract foreign investment — particularly from China — reflects a pragmatic approach to overcoming these obstacles. Forums like the Pakistan‑China Mineral Cooperation Forum aim to foster partnerships that combine capital, expertise, and market access.

Importantly, Pakistani policymakers are also focusing on safeguarding investments and nationals through enhanced security arrangements, recognising that stable conditions are essential for long‑term economic cooperation.

Conclusion: A Strategic Shift in Pakistan’s Export Landscape

Pakistan’s mineral sector stands at a pivotal juncture. With strategic partnerships, infrastructure development under CPEC 2.0, and a clear focus on value addition, the country has the opportunity to transform its natural endowments into sustainable economic growth drivers.

If successfully executed, the projected $6–8 billion in annual mineral export revenue could not only boost foreign exchange earnings but also catalyse industrialisation, regional development, and employment generation — presenting a compelling narrative for Pakistan’s economic future.

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References:

All major factual points in this article are drawn from multiple verified news sources on the recent Pakistan–China Mineral Cooperation Forum, including The Tribune, Arab News Pakistan, and DAWN.