ISLAMABAD: The Special Investment Facilitation Council (SIFC) has instructed the Petroleum Division to submit a summary to the Economic Coordination Committee (ECC) recommending that Pakistan’s mining sector be formally granted industry status, well-informed sources told Business Recorder.
During a recent SIFC meeting, the Power Division confirmed that it had shared its comments with the Petroleum Division on December 3, 2025, while the Petroleum Division noted that feedback from all stakeholders had been received. Participants emphasized that, despite Pakistan’s vast mineral wealth, the mining sector remains severely underdeveloped. Formal recognition as an industry, they argued, would unlock significant economic, social and administrative benefits.
The SIFC urged the Petroleum Division to forward a positive, supportive summary to the ECC/Cabinet to expedite approval. The federal government is expected to endorse the move in coordination with provincial authorities, given that mineral development—excluding oil, gas, nuclear substances, and federally administered areas—falls under provincial jurisdiction.
While provinces regulate exploration, production and mineral titles, the federal government plays a facilitative role through policy formulation, geological surveys, fiscal incentives and local-international coordination. Pakistan currently has more than 5,000 operational mines, producing a diverse range of minerals and employing over 300,000 workers, largely in small-scale operations.
Despite this footprint, only a few large-scale projects exist, and mining contributes just one percent to Pakistan’s GDP. Experts estimate that, with better governance, the sector could contribute up to five percent, significantly boosting national and provincial socio-economic development.
The All Pakistan Mines & Minerals Association has long advocated granting industry status, arguing it would bring crucial benefits, including financing through collateralization of mining leases, duty concessions on machinery imports, stronger prospects for joint ventures, improved infrastructure support, and priority access to land acquisition. Industry status would also compel the government to introduce clearer frameworks for environmental compliance, rehabilitation, resettlement and skill development — enhancing investor confidence.
There is currently no dedicated law for granting industry status. Under the Industrial Relations Act, 2012, an industry is defined as any business or trade involved in the production of goods or services operating across more than one province. Before the 18th Amendment, several sectors were declared industries through federal notifications, receiving incentives such as reduced machinery import duties, zero sales tax on certain equipment, borrowing flexibility from the State Bank, and concessions on energy tariffs.
To strengthen the mineral sector, the Prime Minister’s Office recently established a high-level committee led by the Federal Minister for Power, with representation from provinces and sector experts. After extensive consultations, the committee recommended that mining be formally recognized as an industry.
Though mineral regulation rests with provincial governments, proposed fiscal and credit incentives fall under federal jurisdiction. Accordingly, the Petroleum Division is moving the case under the Rules of Business, 1973, with the aim of securing nationwide industry status for the mining sector.
Story by Mushtaq Ghumman
