KP Governor Seeks Foreign Investment in Minerals as US Eyes Pakistan’s $7 Trillion Wealth

Khyber Pakhtunkhwa Governor Faisal Karim Kundi has invited Pakistani and foreign companies to form joint ventures to extract the province’s mineral resources. His call comes amid renewed US interest in Pakistan’s critical minerals.

Kundi made the announcement in Peshawar on October 17 after attending the 59th convocation of the College of Physicians and Surgeons Pakistan. He said the province intended to extract and sell its minerals to create jobs, support local businesses and improve economic conditions.

“Minerals are meant to be extracted,” Kundi said, inviting companies to partner with the province. He also called for developing KP’s oil and gas reserves.

The governor said better economic opportunities and access to education could help communities resist extremist narratives. He added that the administration planned to invest in police and develop 10 to 12 terrorism-affected districts as model districts for peace and security.

US Seeks Role in Pakistan’s Mineral Sector

US Chargé d’Affaires Natalie A. Baker has said Washington wants to become a preferred partner in developing Pakistan’s critical mineral resources. In remarks reported in October, she discussed the potential for US investment and technology to help develop the sector.

The $7 trillion estimate has also been cited by Planning Minister Ahsan Iqbal and Pakistan’s Foreign Office. It represents an estimate of the country’s mineral endowment, not confirmed revenue or the value of commercially recoverable reserves.

The government is seeking foreign investment to explore deposits and develop processing capacity.

Audit Flags Rs16.94 Billion in Irregularities

An Auditor General of Pakistan report flagged Rs. 16.94 billion in financial irregularities in KP’s Minerals Department. The findings included Rs. 8 billion linked to illegal mining, Rs. 4.31 billion in unrecovered payments from defaulting contractors and Rs. 810 million in outstanding dues from mineral leaseholders.

The audit findings highlight challenges in regulating extraction and collecting public revenue. They do not establish that the entire amount was stolen.

The mineral investment push also comes after Governor’s Rule took effect in KP on October 11. President Asif Ali Zardari approved the measure under Articles 232 and 234 of the Constitution on Prime Minister Shehbaz Sharif’s advice. An 11-member advisory council now operates under Kundi to manage provincial affairs.