Outdated mineral policies needs to be changed: Dr. Mughal
Excessive federal control is putting brakes to progress in remote areas
Government needs to change old-fashioned federal mineral and metal policies to exploit potential in the resource rich province of Balochistan, NWFP and Northern Areas.
Dollar is loosing its worth and now people are investing in oil, gas, commodities, minerals and metals that has resulted in high prices and demand.
This development offers a hope for progress and prosperity in country if investors are lured and work force is trained, said Dr. Murtaza Mughal, President of Pakistan Economy Watch while talking to Post exclusively.
The government has allocated Rs 221.9 million for projects related to minerals under Public Sector Development Program 2008-009. Major projects include Feasibility Study Gasification of Thar Coal (104.0 million), National Coal Policy (Rs 22.7 million), exploration and evaluation of coalfields of Chamlang-Bala Dhaka, Bahlol and parts of Ghazi Basin in Balochistan (Rs 10.9 million) and establishment of project monitoring and evaluation cell (Rs 18.0 million), he informed.
He said that given the international scenario, these allocations seems insufficient and Government needs to tailor its policies regarding mines and minerals and give some autonomy to provinces and regions as controlling mines etc from Islamabad has proved counterproductive over a long period.
The complex division of powers between center and provinces serve no purpose except delaying projects on national importance and frustrate investors.
Similarly, majority of precious stones found in NAs and NWFP, FATA finds their way into India where they are polished and cut because local industry was never patronized. Locals have no option but to sell major chunk of precious stones in untreated form to foreign buyers, said Dr. Mughal.
It is on the credit of bureaucrats in Islamabad to delay Saindak project by three decades and delay Rekodiq by one and a half decade, it is yet to take off.
Rekodik Copper-gold project would be launched by world largest copper and gold producing company with an investment of $1 billion by 2010 to produce 0.3 million tonnes of copper annually, thus bringing Pakistan for the first time on the major copper producing country of the world map. But, the Government of Balochistan and nationalists have serious reservations over it due to the share.
Duddar lead-zinc deposits in Balochistan are being developed and expected to come in production by end 2008 to produce 100,000 tons of zinc concentrates and 33,000 tons of lead concentrates for export, same is the case with this project and federal Government should do something about it, said Dr. Murtaza Mughal.
He said providing 75 percent share to foreign diggers and keeping details of the deals secret will only create frustration and heartburn in provinces and regions, he added.
Development of Thar Coal field in Sindh containing 175 billion tons, one of the largest good quality lignite deposits in the world, on completion would be used for power generation and gasification. This project is also being delayed due to political issues.
Work on phosphate rocks of NWFP, dimension stones, precious and semi precious stones should be expedited.
Federal Government can provide enabling environment to get help in public debt management and cut deficit largely if provinces and regions are empowered to have their own exploration and investment policies.
