Pakistan, China Advance CPEC 2.0 with Focus on Mineral Development and Economic Growth

Pakistan and China are set to enter a new phase of strategic economic cooperation under CPEC 2.0, with a strong focus on mineral development, industrialization, and export-led growth, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal announced on Wednesday.

While addressing the China-Pakistan Mineral Cooperation Forum, the minister stated that Gwadar Port will play a central role as a gateway linking Pakistan’s mineral-rich regions to regional and global markets. He highlighted that CPEC Phase-II marks a strategic shift from infrastructure-driven projects to value-added, investment-oriented, and export-focused initiatives.

Pakistan’s Untapped Mineral Potential Under CPEC 2.0

Highlighting Pakistan’s vast natural resources, Ahsan Iqbal revealed that the country is home to 92 known minerals, with 52 currently being extracted through nearly 5,000 operational mines. Despite this, mineral exports currently contribute only 2–3% to Pakistan’s GDP, largely due to limited processing and value addition.

More than 90% of mineral exports are in raw or semi-processed form, leaving significant room for growth. The minister emphasized that with modern extraction, processing, and refining technologies, Pakistan could dramatically increase its mineral export earnings.

Investment Opportunities in Mining and Industrial Development

The government has identified high-potential sectors including marble, granite, copper, gold, coal, and rare earth minerals, encouraging Chinese investors to partner in technology-driven mining and downstream industrial projects.

According to the minister, effective governance, improved infrastructure, and strategic foreign investment could help Pakistan’s mineral exports reach $6–8 billion annually, support GDP growth of up to 6%, and generate over 350,000 new jobs.

Existing initiatives such as Saindak Copper-Gold Project, Duddar Lead-Zinc Mine, and Thar Coal Development already demonstrate the long-term potential of mineral-based industrialization.

Gwadar and Economic Corridors to Drive Regional Connectivity

To strengthen connectivity, the government is promoting development along strategic corridors such as Naukundi–Mashkhel–Turbat–Gwadar, directly linking Balochistan’s mineral belt with Gwadar Port. This integration is expected to boost trade, logistics, and real estate development across key regions.

For Pakistan’s real estate and investment landscape, these developments signal long-term growth in industrial zones, commercial hubs, and infrastructure-led property demand, particularly around Gwadar and economic corridors.

Inclusive Growth, ESG Compliance, and Investor Confidence

The minister stressed the importance of responsible and inclusive development, ensuring that mineral-rich regions including Balochistan, Gilgit-Baltistan, and Khyber Pakhtunkhwa benefit through employment, skills development, infrastructure, and social services.

He also emphasized strict environmental standards and compliance with ESG (Environmental, Social, and Governance) principles to ensure sustainable growth and enhance investor confidence.

Fast-Track Investment Through SIFC

To facilitate foreign investment, Pakistan has strengthened institutional coordination under the Special Investment Facilitation Council (SIFC), offering fast-track approvals, policy consistency, and a secure environment for Chinese and international investors.

“With China as our trusted partner, Pakistan is committed to transforming its mineral wealth into industrial strength, export competitiveness, and shared prosperity,” Ahsan Iqbal concluded.

 

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