In Pakistan, mining activities are primarily conducted by small-scale operations such as sole proprietorships, partnerships, and some private limited companies. Medium and large-scale mining activities are undertaken by private limited and public limited companies, including foreign entities.

As per the Mineral Policy the government aims to create fiscal measures that promote mineral exploration and development. These measures will be reviewed periodically to adapt to the evolving mineral landscape and international challenges, ensuring alignment with the general tax structure.

The various taxes and levies applicable to the mineral sector are detailed in the policy and are to be updated periodically by the respective governments.

Accounting & Record Keeping

Efforts will be made to encourage the mining community to prepare financial statements in accordance with International Financial Reporting Standards (IFRS) through seminars and conferences.


The royalty rates for minerals will be set and adjusted by the respective governments and communicated to other provinces, federating units, and the Federal Government as necessary.

Joint Ventures with Local Enterprises

The government will encourage joint ventures between foreign and local investors. In addition to royalty payments, the government may participate in projects through negotiated equity, participating interest, enhanced royalty rates, or other agreed-upon structures.

Development of Infrastructure

Efforts will focus on developing infrastructure in mineral-bearing areas, including water rights, roads, electricity, water supply, labour colonies, medical facilities, and education. Both Federal and Provincial Governments will facilitate investment in infrastructure on a Build, Operate & Transfer (BOT) basis or through other methods.

Research and Development (R&D) Enhancement

Government departments and the Mineral Wing of the Ministry of Petroleum & Natural Resources will enhance skills development to conduct economic and legal analyses for the mineral sectors, protecting governmental interests. R&D will encompass geological surveys, exploration, mining, beneficiation, and material development. The focus will be on developing technologies for converting existing mineral resources into viable economic resources and adopting technological innovations from abroad.

Research in Mining Methods

Research will target rock mechanics, ground control, mine design engineering, equipment deployment, energy conservation, environmental protection, safety, and human engineering.

Mineral Processing & Beneficiation

Research organizations will develop processes for beneficiation and elemental analysis of ores. There will be coordination among public and private sector organizations to encourage local value addition and promote upstream and downstream industries.

Human Resource Development

A qualified workforce will be developed through:

  • Relevant training and educational programs via TEVTA.
  • Scholarships, grants, bursaries, loans, and other incentives.
  • Retraining and skills upgrading programs.
  • Capacity enhancement for contract negotiations.
  • Collaboration among local and international entities.

Price Determination

Effective price determination for the mineral sector will be conducted by the respective governments to maintain competitiveness in the global economy.

Corporate Social Responsibility (CSR)

Mining companies will contribute annually towards community improvement projects, such as schools, dispensaries, and infrastructure. These contributions will be managed by the government for local welfare projects and training programs for Pakistani employees and officials.

Small-Scale Mining

Preference will be given to Pakistani nationals in small-scale mining, as decided by the respective government.

 Provincial Inspectorates of Mines

Inspectorates of Mines will be established to ensure safety and health standards in mining operations. They will enhance health and safety measures, provide training, and conduct R&D for safety improvements.

 Linkages with Other Sectors

Mining companies will provide facilities for technical education and on-the-job training. They will also be encouraged to use Pakistani goods and services and to support secondary and tertiary processing within Pakistan.

Miscellaneous Matters

Protection of Foreign Investment

Foreign investments are protected under the Protection of Economic Reforms Act 1992 and the Foreign Private Investment (Promotion and Protection) Act 1976. These laws guarantee the repatriation of capital and profits.


Mining operators are encouraged to insure their assets and risks with international insurance companies.

Implementation of National Mineral Policy

Federal and Provincial Ministries/Departments will take administrative measures and amend relevant laws to enforce the policy. Continuous evaluation and review will ensure successful implementation. The Mineral Wing of the Ministry of Petroleum & Natural Resources will coordinate these efforts, with biannual policy review meetings involving key government officials.

The policy will adhere to internationally established standards and Pakistan’s commitments to sustainable development and trade agreements. The government will work domestically and internationally to promote the policy’s objectives, collaborating with private sectors and stakeholders for the beneficial development of the nation’s mineral resources.

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