Pakistan and Kuwait Collaborate to Establish $1 Billion Mining Fund
Islamabad, The Gulf Observer: In a strategic move to invigorate the economy, the Pakistani government is turning its attention to the mining sector, propelled by the recent out-of-court settlement of the Reko Diq project. Pakistan is set to forge a significant partnership with the Gulf Arab state of Kuwait, culminating in the establishment of a joint mining fund valued at $1 billion.
Sources revealed that a state-owned Pakistani company has been designated as the lead entity to facilitate collaboration with Kuwait on the mining fund. Initial discussions between the two nations have taken place, with a Kuwaiti company expressing interest in the extraction of metals and minerals crucial for renewable energy.
A comprehensive working plan, complete with timelines, is slated to be presented to a joint working group to expedite progress on the proposed fund. Concurrently, a Mineral Cell, overseen by the Petroleum Division, has been established, and efforts are underway to revise the National Mineral Policy, aimed at enticing foreign investment, particularly in the mineral-rich province of Balochistan.
The government’s resolute commitment to overcoming obstacles in the existing policy is evident, with plans to introduce amendments aligned with foreign investor requirements. A second draft of the National Mineral Policy is currently in progress, alongside the preparation of the first draft for updating the Mines Act 1923.
Officials disclosed that a meticulous gap analysis is being conducted to refine the Provincial Mineral Concession Rules, anticipated to be finalized in the coming months. The government is also contemplating amendments to the Regulation of Mines and Oilfields and Mineral Development (Govt Control) Act, 1948, as part of its efforts to attract foreign investors.
Experts highlight the significance of addressing policy inconsistencies and streamlining anti-corruption measures, citing these as crucial factors to regain and retain foreign investment in Pakistan’s mining sector.
