Mining sector: Punjab unveils incentives to attract foreign investment

LAHORE: Chief Minister Punjab Maryam Nawaz Sharif invited international investors to explore Punjab’s mineral resources, announcing a package of incentives, including interest-free loans, concessional land leases and tax exemptions, to attract investment in the mining and mineral processing sectors.

Addressing the Pakistan Minerals Investment Forum 2026, the CM said the provincial government wanted to turn Punjab’s mineral wealth into shared prosperity through international partnerships and a business-friendly investment environment.

“Pakistan itself is a treasure trove of gold, with immense wealth both above and beneath the ground,” she said, adding that rivers in Punjab carried not only gold but also rare earth elements, minerals and metals in their sand deposits.

She said surveys and studies were under way to assess gold deposits in rivers in Mianwali and Attock. The potential mineral wealth carried by rivers could open up new economic opportunities for the province, she added.

The chief minister said Punjab’s Mines and Minerals Department had increased its annual revenue from Rs10 billion when she assumed office to Rs40bn in two and a half years. She attributed the increase to administrative reforms and improvements in the department are functioning, adding that the figure was only the beginning.

She said Punjab was endowed with emeralds, marble, granite, gold, pink salt and other natural resources. Chiniot alone had estimated gold reserves of 261.5 million tonnes, she claimed. She also highlighted the benefits of value addition in pink salt, saying processing the mineral before export had significantly increased its economic returns.

Outlining the incentives for investors, the CM said the government had introduced a one-window facilitation system to eliminate red tape and unnecessary administrative hurdles. Special concessions were being offered in land lease agreements to reduce initial capital requirements and allow investors to direct more resources towards their businesses.

The government was also offering interest-free loans of up to Rs5bn, with the provincial government bearing the interest cost, she said. Solar-powered facilities in industrial estates were being provided to help investors reduce energy and fuel expenses.

She said a large mineral processing zone had been designated for the first time in Punjab, where industrial land would be available on nominal monthly rent for 15 years. Export-oriented industries would also receive concessional financing, including loans of up to Rs100 million and subsidised mark-up rates on larger financing facilities.

The chief minister said the government was also providing interest-free loans of up to Rs50m for value-added pink salt products, repayable over five years. The profit margin on such products could reach 55 per cent, she added.

She said customs duty concessions were being offered at the industrial estate in Khushab, while investors could obtain licences and certificates under the one-window system even after commencing operations, rather than waiting for prior approvals.

The chief minister said Punjab had completed feasibility studies for strategic minerals, including rock salt, iron ore, placer gold and construction materials. She added that the province’s road network, including motorways, expressways and highways, provided investors with access to infrastructure.

She said the government had digitised bidding, work orders, licence renewals and fee payments, while official correspondence had also been made paperless and online. Drones were being used for digital monitoring and oversight of mining activities.

Emphasising environmental protection and transparency, she said the government was prioritising technology-driven and responsible mining practices.

She assured international partners of security, protection of investments and the prospect of sustainable returns, saying Punjab was seeking long-term partnerships in the sector.

Referring to the country’s young population, she said 65 per cent of Pakistan’s population comprised young people, describing them as an important national asset.

Copyright Business Recorder, 2026