Saudi Arabia and UAE to Invest $46 Billion in Pakistan.

Saudi Arabia and UAE to Invest $46 Billion in Pakistan

Pakistan’s Minister of State for Petroleum, Musadiq Malik, has shared exciting news about significant investments from Saudi Arabia and the UAE in Pakistan’s mineral and mining sector. These investments, totaling $46 billion, aim to tap into Pakistan’s vast mineral wealth, estimated at $6.1 trillion.

Minister Malik revealed this development during a media briefing about the ‘Pakistan Minerals Summit – Dust to Development – Investment Opportunities in Pakistan.’ He emphasized the intention to establish a global standard regulator for the mineral and mining sector.

The investments from Saudi Arabia and the UAE are marked at $24 billion and $22 billion, respectively. Minister Malik drew a comparison with top companies like Apple, Google, and Amazon, which drive the United States’ economy. He stressed that Pakistan’s mineral wealth, including gold, copper, lithium, and coal reserves, can be extracted and utilized.

The mineral revolution’s objectives are threefold, aimed at transforming Pakistan’s mining and mineral exploration policies. The theme, “Dust to Development,” signifies a shift from merely selling raw materials to promoting value-added products.

The first goal is to uplift impoverished communities by creating job opportunities. The focus will move from merely selling raw materials, like in the case of Reko Diq, to mining, smelting, and producing value-added goods.

Balochistan, where metals are mined, will host related industries, fostering economic growth in the province. This approach will be replicated in other regions of Pakistan with mineral reserves, promoting the establishment of small industrial units.

Minister Malik acknowledged bureaucratic hurdles hindering progress, but he pledged to introduce investor-friendly measures. The upcoming conference will highlight the shift from bureaucratic delays (“Red Tape”) to facilitating investors (“Red Carpet”).

To streamline the industry, Pakistan plans to consolidate the numerous mining and mineral sector laws into a unified regime. Stringent health and safety standards will be implemented in mining, and deregulation of the sector will occur in phases.

To simplify taxation, a straightforward scheme will be introduced. The entire mining and mineral policy will be executed through a Special Investment Facilitation Council (SIFC), aiming for efficient and cohesive operations.

In essence, Pakistan is poised to transform its mineral and mining sector, attracting substantial investments from Saudi Arabia and the UAE, leading to job creation, economic growth, and the utilization of the country’s abundant mineral resources.

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