PAKISTAN STUDIES ASSIGNMENT 2

NATURAL RESOURCES IN PAKISTAN

Natural Resources are an asset for a country and are immensely important in economic
development of a country. Financial growth can be propelled by proper exploitation of
resources like hydrocarbons, minerals, water, land, and forests. We consume natural resources
every day, either directly or in form of synthetic products produced using such resources.
Globally, 60 billion tons of natural resources are used annually, in one form or another.
Possession of specific natural resources can help decrease import, and earn wealth through
increased export, creating an economic balance in a country. It can aid in gaining importance in
the world market as well create employment locally. Therefore, natural resources are of prime
importance to a country.
Pakistan is no different and being a developing country, is heavily reliant on its natural
resources. It is blessed with rich resources of Coal, Oil & Gas, Minerals, Water and Land.
Natural Resources in Pakistan:

 Coal
Coal mining is one of Pakistan’s oldest industry. Pakistan holds 3377 million tons of proven coal
reserves and ranks 20th in the world. Although the coal quality is poor and coal mines do not
work at full capacity due to difficulty in accessing these mines, Pakistan is still the 36 th highest
producer of coal globally. Even then, demands far exceed the local supply, as Pakistan is 38 th
highest consumer of coal, seventy percent of coal must be imported. Yet, there are 99.7 of
proven reserves left that can last Pakistan 331 years at current rate of consumption. (Reference:
Worldometers.info).

Thar is the greatest coal reserve in Pakistan, with 175 billion tons of deposits. Musakhel, on the
borders of Punjab, has more than fifty mines operating currently, and has high quality coal and
charcoal reserves, at a depth of thirty feet. Thirdly, Duki in Baluchistan has the highest rate of
coal extraction in Pakistan with a turnover of Rs. 50 million daily. Coal mining is the main
industry in the area and eighty percent of the population are directly involved in the business,
held entirely by private firms. There are also the Sor, Nowshera, Lakhara, Dengari , Sonda, and
Shahrig ranges.
The main use of coal in Pakistan in power generation. Currently, there are nine thermal power
plants operating on coal including Sahiwal Coal Project and Hub Coal Power Project, both
having power generation capacities of 1320 MW. Moreover, there were six proposed power
plants to be built until December 12, 2020 when it was decided that new coal-fired power
plants will no longer be built in Pakistan. Besides power generation, coal is also utilized as an
industrial fuel, in brick kilns and cement industry.

MUHAMMAD ARHAM
CMS ID : 333595
 PAKISTAN STUDIES ASSIGNMENT 2

However, mining of “Black Gold” is limited in Pakistan due to inaccessible mines and poor labor
conditions in such mines. There are almost 320 deaths annually due to poor mining conditions.
Also, emissions from coal industry is extremely dangerous for environment and recent green
project in Pakistan has had an impact on the local coal industry. There is a need to improve
technology and safety conditions in the coal mining industry, that can not only provide better
conditions for miners, but will also result in increased coal production.

 Oil & Gas

Natural gas is the cheapest and most efficient energy resource in Pakistan. However, Pakistan
has depleting oil resources due to high demand that the local production is unable to match.
Pakistan produces around 88,000 barrels of oil daily, 53 rd highest producer, but they consume
556,000 barrels that is 33rd highest consumption globally. At current consumption level, oil
resources in Pakistan may only last 20 years and there is an urgent need to find new reserves
and deposits, or access oil fields not operating currently.
Pakistan’s first gas field was found in Sui, near Baluchistan, in 1952. The Toot oil field were later
found in 1960s, and with Soviet help, Pakistan Petroleum commenced oil extraction in 1964.
The Sui gas field is the largest in Pakistan and accounts for 26 percent production in the
country. Other oil fields include Khuar, Dhullian, Joya Mair, Balkassar, and Karsal oil fields.
In Pakistan, oil and gas are generally used in power and has around forty thermal power plants
operating on oil and gas. Power sector consumes 33 percent of total oil supply in Pakistan.
Moreover, oil is heavily used in industry, including cement and fertilizer industry. Domestic use
and use in transportation make up the rest of demand.
Pakistan has depleting oil resources and the recent price hikes as well as the unstable
conditions of world oil market act as a warning for Pakistan. There is an urgent need to either
reduce oil consumption drastically or shift to other renewable and eco-friendly sources of
power, as finding new oil fields and accessing them is highly unlikely.

 Minerals
Pakistan is rich in metallic and non-metallic mineral resources. It has promising areas for
mineral exploration and international agencies have confirmed great potential of Pakistan in
resources like gold, copper, silver, iron, granite, limestone, gypsum, sulfur, and other high-
quality stones.
Despite the great potential, the mineral industry contributes only 0.5 percent of GDP. The
unstable government and financial policies discourage foreign investors from accessing mineral
resources in Pakistan. Even the local administration lacks funding and is heavily understaffed.
They lack proper training and expertise to efficiently exploit such resources. Moreover, there is
lack of technological development in the industry and old machinery and techniques have low

MUHAMMAD ARHAM
CMS ID : 333595
 PAKISTAN STUDIES ASSIGNMENT 2

production rates. Besides, some mines and deposits are just inaccessible without proper
equipment and resources, therefore, the mineral industry in highly underdeveloped in Pakistan.
Currently, there are 52 mineral resources being extracted, mostly on small-scale. Baluchistan is
richest in minerals with about 80-85 percent of Pakistan’s total resources. Some of the mineral
resources being extracted are:
 Copper & Gold: Reqo Diq in Chagai district on Baluchistan have copper reserves. They
are believed to be one billion ton rich in copper reserves. Similarly, gold is also found in
the area and can be great financial importance for the country.
 Mineral Salt: Khewra salt mines are the world’s largest salt mines with an estimated
total of 220 million tons of rock salt. Khewra salt also contain iron, zinc, copper,
magnesium, chromium.
 Iron Ore: Reserves are majorly present in Punjab, mostly in Chiniot, Kalabagh, Nokundi,
and Haripur. There are almost 500 million tons of high-grade iron ores present according
to Swiss and Canadian laboratories.
 Precious Stones: Mining and polishing of such stones earns Pakistan 200 million dollars
in exports. These stones include aquamarine, ruby, serpentine, emerald, moonstone,
turquoise, and quartz.
 Uranium: Uranium is important as fuel for nuclear stations in Pakistan. Uranium
deposits are found in Bannu Basin, Suleiman Range, Issa Khel, and Mianwali District.
Pakistan has produced 45 tons of uranium but most of the resource is imported. Many
sites are being now used as nuclear dump.
 Other resources being extracted are Limestone, Chromite and Gypsum.
To develop the mineral industry, Pakistan should promote foreign investors and develop roads
and necessary infrastructure to access mines. There is a need of long-term financial planning
and providing technical training programs to staff in local mining industry. Such measures can
greatly increase the mineral production that are a major asset of a country and can greatly
benefit the economic development of the country.

 Water
The Indus Water System is the main water resource of Pakistan. Since independence, there
have been constant issues with India over the water resource and the Indus Water Treaty in
1948, provided Pakistan with the rights of Indus, Jhelum, and Chenab river. Even then, Pakistan
has had never ending disputes and the 1965 over water rights that highlights the importance of
this natural resource for Pakistan.
Pakistan is primarily in agricultural country and water is required for irrigation to fulfill food
demands of the country. The agricultural sector contributes 25 percent to GNP of Pakistan, and
it is therefore important to fulfill water demands of this sector. Moreover, domestic use is
common and even industries use large amounts of water. Also, there are several hydroelectric

MUHAMMAD ARHAM
CMS ID : 333595
 PAKISTAN STUDIES ASSIGNMENT 2

power plants in Pakistan for power production, the largest being Mangla and Tarbela dam.
Moreover, there are several barrages present in the country to store water and guide it in
irrigation channels when required.
Despite having numerous glaciers, world’s largest contiguous irrigation system, and the Arabian
Sea at its disposal, Pakistan faces acute water shortage in near future. Water infrastructure is
outdated, and there is large-scale waste of this resource. Clean water in unavailable for
domestic use. There is speculation that Pakistan can become absolutely water scarce by 2025.
Droughts are common and weather patterns are disturbed that are further deteriorating
conditions in Pakistan. Only recently, both major dams of Pakistan reached dead storage levels,
and could not operate due to scarcity of water.
There is an immediate need of attention to this matter as Pakistan is heavily reliant on this
resource and drying of water channels will be disastrous for the country. Pakistan has tried and
failed to build Mansha and Mahmund dams by completely outsourcing them to the public.
There is a need of proper planning and effective implementation before we face never ending
draughts in the country.

Pakistan is a resource rich country and proper exploitation can be a game changer. Pakistan
should look towards finding new deposits or finding substitutes for depleting sources. We need
a long-term program with stable policies to attract foreign investors and provide technical
training to its own people. Natural resources have unprecedented economic benefits for the
country, and it is the need of hour to shift our focus to protecting our own resources.

MUHAMMAD ARHAM
CMS ID : 333595