Harmonising regulation of minerals sector: Centre seeks cooperation over effective framework

ISLAMABAD: The federal government has asked the provincial governments, AJK and Gilgit-Baltistan to enact the Mines and Minerals Act, 2025 by completing the legislative process for harmonisation of the regulatory framework in the minerals sector.

To this effect, DG Mineral Dr Nawaz Ahmed Virk wrote a letter on February 10, 2025, to chief secretaries of KPK, Punjab, Sindh, Balochistan, AJK and, Gilgit-Baltistan (GB), seeking their input for harmonisation of the regulatory framework for the minerals sector.

Virk also shared the finalized draft of the Mines and Mineral Act 2025 with the federating units, seeking approval of it from their assemblies paving the way for an effective regulatory framework.

The letter mentions that in line with the Constitution of the Islamic Republic of Pakistan, the provincial governments are vested with the executive and regulatory authority for the development of mineral resources, excluding mineral oil, natural gas, and resources necessary for nuclear energy generation.

“The federal government, within its mandate for geological surveys, policy formulation, and national and international coordination, has been actively supporting the provinces in optimizing the development of the minerals sector.”

According to the letter, under the guidance of the Special Investment Facilitation Council (SIFC), the Petroleum Division initiated a comprehensive review to update the national mineral regulatory framework. This initiative is aimed at assisting the provinces in establishing an internationally competitive and harmonised system for the minerals sector.

For this purpose, international consultants were engaged to provide expertise on legal and fiscal aspects, drawing on best industry practices and model regulatory standards from benchmarked jurisdictions. Representatives from provincial Mines & Minerals Development departments, including the Energy Department of the government of Sindh (specifically for coal), were actively involved throughout the review process, contributing valuable insights and feedback.

Extensive consultations were also conducted with stakeholders, including industry representatives, academia, and mine owners, to ensure the formulation of a practical, competitive, and comprehensive regulatory framework.

Following thorough deliberations and careful consideration of stakeholders, and inputs, the updated mineral regulatory framework has been finalized. This framework is designed to promote harmonised regulatory practices across all federating units/provinces, to the extent possible. The Apex Committee of the SIFC, during its 11th meeting held on 2nd January, 2025, while observing that the Harmonised Mines and Minerals Act, 2025 has been approved/concurred by the provinces, advised that after addressing the remaining observations, the finalized draft be shared with all provinces, AJK and Gilgit-Baltistan for their adoption.

In light of the above, it is requested that necessary steps be taken on a priority basis to enact the shared Mines and Minerals Act, 2025 by completing the legislative process, the letter states.