VOLATILE SECURITY, HIGH ELECTRICITY TARIFFS
However, security is a major issue.
A long-running insurgency in Balochistan has disrupted mining operations for over a decade. Recent terror attacks on civilians and foreign workers have also shaken investor confidence.
Many global investors have expressed doubts about the safety of their future operations, and are concerned about increasing attacks by militant groups opposed to mining in the region.
To reassure potential investors, the country’s army chief Asim Munir promised to ensure a robust security framework and protect the interests of investors.
Another challenge is Pakistan’s high electricity tariffs and surplus capacity.
In the last financial year, only 34 per cent of the energy generated was used due to structural inefficiencies.
Acknowledging the problem, Malik said: “The grid has to improve its game, improve on the efficiency front, and dismantle the perverse incentives in the pricing regime, so that people can also rely on the grid for reliable and economical power.”
Ahmed Hayat Lak, managing director of Pakistan’s Oil and Gas Development Company, said collaboration is important when it comes to tapping Pakistan’s vast mineral resources.
“In the case of Reko Diq, a lot of services are being procured from the US. So we would like to see an ever closer union in this regard, and they should come forward not in terms of daily service providers but as well as completely invested in our sector,” he added.
“It is important that we have world class partners, we have world class technology and we have world class services.”
