Policy Continuity, Legal Protection Vital for Long-term Investment in Mineral Sector: PA Speaker Ahmad
Punjab Assembly (PA) Speaker Malik Muhammad Ahmad Khan has stressed the need for political consensus, policy continuity, and legal protection of agreements to enable Pakistan to fully exploit its vast mineral resources and attract long-term investment in the sector.
Addressing the concluding session of the annual conference on “Rare Earth Minerals in Pakistan: Opportunities and Challenges” at the National School of Public Policy (NSPP), here on Tuesday, he said frequent changes in policies with every change of government undermined investors’ confidence and hindered long-term investment.
He noted that Pakistan required a long-term and stable mineral-sector policy protected from changes in government: "Pakistan has long been described as a country rich in mineral resources. The question is why we have so far failed to turn these resources into national wealth and economic prosperity?"
The Speaker highlighted the importance of determining whether the country’s failure to benefit from its mineral wealth stemmed from a lack of political will, shortcomings in government structure, or weaknesses in existing policy frameworks.
Malik Muhammad Ahmad Khan advised that concerns raised by stakeholders regarding policies or agreements be seriously considered and addressed through reasoned dialogue. Referring to the constitutional framework, he emphasized: "The framers of the Constitution had recognized the need for a clear distribution of powers and resources between the federation and provinces."
He added that international agreements in the mineral sector could remain in force for decades, spanning several governments, and thus, investors needed assurance that legally executed agreements would be protected even after a change in government. "Policy continuity and the protection and enforcement of agreements are the foundation of investor confidence," he emphasized.
The Speaker also called for greater harmonization between federal and provincial laws governing mineral exploration, extraction, investment, licensing, and agreements, suggesting that conflicting legal provisions could discourage investors. He underscored the need to balance economic development with environmental protection, highlighting the environmental challenges associated with mineral extraction and emphasizing consultations among experts, institutions, and stakeholders.
