National Minerals Harmonisation Framework 2025: A Game Changer for Pakistan’s Mining Sector
Pakistan is on the brink of a significant transformation in its mining sector with the finalization of the National Minerals Harmonisation Framework 2025. This policy is designed to attract domestic and foreign investments, ensuring a structured and well-regulated mining industry.
The federal government, in collaboration with all provinces, Azad Jammu and Kashmir (AJK), and Gilgit-Baltistan (GB), aims to implement the policy by February 26, 2025. The framework will be officially launched at the Pakistan Critical Minerals Summit on April 9, 2025.
Saudi Arabia has already shown a keen interest in acquiring 15% shares in the Reko Diq copper and gold mining project, indicating growing investor confidence in Pakistan’s mining sector. The initiative falls under the Special Investment Facilitation Council (SIFC) and is expected to bring extensive reforms to the industry.
Understanding the National Minerals Harmonisation Framework 2025
What is the National Minerals Harmonisation Framework?
The National Minerals Harmonisation Framework 2025 is a strategic policy aimed at unifying regulations across Pakistan’s mineral-rich regions. The framework seeks to:
- Streamline mineral policies across all provinces
- Standardize mining regulations to attract foreign investors
- Ensure safety, environmental sustainability, and efficient resource extraction
Stakeholders Involved in the Policy Formulation
The federal government has ensured widespread consultation in finalizing the framework. Key stakeholders include:
- Provincial Governments – Actively engaged through briefings to chief secretaries and chief ministers.
- Mining Companies & Associations – Both large and small-scale operators contributed insights.
- State-Owned Enterprises (SOEs) – Their involvement ensures smooth policy adoption.
- Law and Justice Ministry – Assisting in legislative alignment through the Council of Common Interests (CCI).
Key Features of the Framework
Adoption Deadline & Implementation Strategy
The framework must be adopted by all provinces, AJK, and GB by February 26, 2025. This will ensure a unified mining policy ahead of the Pakistan Critical Minerals Summit in April 2025.
Regulation of Mining Operations
- No leasing of mines for raw material extraction to foreign companies
- Strict action against illegal mining operations
- Standardized licensing and operational guidelines
Investor-Friendly Policies
To attract foreign direct investment (FDI), the framework includes:
- Tax incentives for mineral exploration projects
- Fast-tracked licensing procedures
- A well-defined dispute resolution mechanism
Pakistan’s Commitment to the Mining Industry
Saudi Arabia’s Interest in Reko Diq Mining Project
Saudi Arabia has expressed interest in acquiring a 15% stake in the Reko Diq copper and gold mining project. This aligns with Pakistan’s vision of strategic international partnerships in the mining sector.
Reko Diq Project – A Multi-Billion Dollar Investment
The Reko Diq copper and gold project in Chagai, Balochistan, is one of the world’s largest untapped reserves. The total investment required is $4.297 billion, with funding details as follows:
- State-Owned Enterprises’ Special Purpose Vehicle (SPV): $1.194 billion
- Government of Balochistan SPV: $717 million (funded by the federal government)
The government of Pakistan will provide back-to-back guarantees to the Government of Balochistan SPV in case of debt financing. This financial arrangement has been approved by the Economic Coordination Committee (ECC).
Legal & Safety Reforms for a Transparent Mining Sector
The Mines and Minerals Act 2025
Pakistan has introduced the Mines and Minerals Act 2025 to regulate mining operations. Key provisions include:
- Transparency in licensing and leasing processes
- Banning illegal mining activities
- Ensuring environmental compliance
National Mineral Development Policy 2025
The National Mineral Development Policy 2025 aligns with global best practices, ensuring:
- Sustainable mineral extraction
- Protection of local communities in mining regions
- Revenue-sharing mechanisms benefiting provinces
Mines Safety and Health Act 2025
Pakistan is also working on the Mines Safety and Health Act 2025, set for adoption by June 2025. This law will:
- Enhance safety protocols for miners
- Ensure compliance with international labor laws
- Prevent workplace hazards in mining operations
Dispute Resolution & Foreign Investment Protection
Out-of-Court Settlement with Tethyan Copper Company (TCCA)
Pakistan and Balochistan’s government reached an out-of-court settlement with Tethyan Copper Company, Australia (TCCA) after adverse rulings by:
- International Centre for the Settlement of Investment Disputes (ICSID)
- International Chamber of Commerce (ICC)
Joint Venture with Barrick Gold Corporation
To ensure the smooth development of Reko Diq, a joint venture has been formed between:
- Barrick Gold Corporation
- Government of Balochistan
- Pakistan Petroleum Limited
- Oil and Gas Development Company
- Government Holdings (Pvt) Limited
This collaborative approach is expected to strengthen investor confidence and boost economic growth in Pakistan’s mineral sector.
FAQs About the National Minerals Harmonisation Framework 2025
1. What is the purpose of the National Minerals Harmonisation Framework 2025?
The framework aims to unify mining regulations, attract foreign investment, and ensure sustainable mineral resource management across Pakistan.
2. When will the framework be implemented?
All provinces, AJK, and GB must adopt the policy by February 26, 2025, with its official launch at the Pakistan Critical Minerals Summit on April 9, 2025.
3. How will this framework benefit foreign investors?
It provides a transparent, investor-friendly environment with tax incentives, simplified licensing, and dispute resolution mechanisms.
4. What role does Saudi Arabia play in Pakistan’s mining sector?
Saudi Arabia has shown interest in acquiring a 15% stake in the Reko Diq project, strengthening economic ties between the two nations.
5. What measures are being taken to prevent illegal mining?
The Mines and Minerals Act 2025 includes strict regulations to curb illegal mining and prevent unauthorized foreign extraction of raw materials.
Conclusion
The National Minerals Harmonisation Framework 2025 is a transformative step for Pakistan’s mining sector. By standardizing regulations, ensuring investor protection, and promoting sustainable mining, Pakistan is positioning itself as a global player in the mineral industry.
With a strong legal framework, foreign investment commitments, and safety measures in place, the mining sector is set to drive economic growth and contribute to Pakistan’s long-term prosperity.
