Pakistan has the world’s second biggest reserves of gold and copper at Reko Diq in Chagai, Balochistan. Evaluated around US$ 500 billion, Reko Diq reserves have the potential to showcase Pakistan as a world-class mining destination, where it is safe for companies to invest in mining projects to explore precious natural resources.

Located close to Saindak gold and silver project in Chagai district, the mineral resource at Reko Diq is estimated at 5.9 billion tons. From this resource, an estimated 2.2 billion tons of economically mine-able ore, with an average copper grade of 0.5 percent and an average gold grade of 0.3 grams per ton, can be processed to produce 2.2 billion pounds of copper (ten million tons) and 13 million ounces of gold. In other words, around 200,000 tons of copper and 250,000 ounces of gold, per year can be processed for about 56 years.

According to eminent scientist, Dr. Samar Mubarakmand, the same kind of reserves have also been discovered in North Waziristan. Dr. Samar said that despite the fact that Thar coal reserves are found in powder form under water, Pakistan could produce 50,000 MW electricity and 100 million barrel diesel through their gasification. In addition to these metallic minerals, Pakistan has a good supply of non-metallic minerals, like rock salt, limestone, soapstone, sulphur, and marble.

In terms of agricultural production, Pakistan ranks amongst the top 10 countries of the world. But despite being the world’s 10th top country in agricultural production, Pakistan often faces shortages of various commodities due to primitive agricultural practices, poor marketing, and managerial skills. Consequently, country’s gross domestic product and, in particular, its exports, are neither commensurate to its agro-industrial potential nor its size and the population. Reason: Bad governance, self-serving policies of top hierarchy, poor law and order situation, corruption, chronic energy shortages, and poor marketing techniques, etc. The value addition depends upon the quality of human resource. The more the literacy and skill levels, the better the prospects of adding value to raw materials.

The gas and electricity shortage, which have persisted for the last over a decade now, have hit the industrial sector. The Karachi Chamber of Commerce and Industry (KCCI) has termed the present trade and industrial conditions the worst in the country’s history, warning if timely measures are not taken the situation would go out of control. According to a KCCI report, 316 industrial units have been closing doors every year for the last several years.

The government revised gas load-shedding plan in November, announcing that the industrial sector would observe 2-3 gas holidays per week till March 15, 2011. Not content with the decision, it abruptly suspended gas supply to the industrial units in Punjab on December 13 till further orders. According to textile mills, the step would jeopardise US$ 80 million monthly textile exports generated from Punjab and put at risk jobs of 1.5 million workers, according to a report.

Bad governance seems to have touched new heights. In its latest audit report on Alternate Energy Development Board (AEDB), the audit has noticed that AEDB performs similar functions as are being performed by Pakistan Council of Renewable Energy (PCRET), Hydrocarbon Development Institute of Pakistan (HDIP) and National Energy Conservation Centre. Understandably, Pakistan recently paid US$ 30 million as commitment charges to ADB for not using efficiently, timely and in transparent manner the credit lines amounting to US$ 4 billion.

At the beginning, while the leadership and bureaucracy exercised restraint in spending money from state coffers, the country had sufficient funds for catering to the needs of defence, development, industrialisation, etc. With interruption in the democratic dispensations and rise to power of greedy and self-serving elements, a new culture started to take root. The new leadership indulged in extravaganza and luxurious lifestyles, trying to impress others with pomp and show instead of actual performance.

We have now reached a situation where the country resembles an overweight ship, struck deep in turbulent waters. In such circumstances, the captains would normally throw away the extra load and think about remedies and plans to steer the ship and the passengers, with as much safety as was possible, to their destinations. But, strangely, in our case, the captains of state have been adopting a course entirely different from the captains of ships. The result is that within the last two years loans of the country have increased by 50 percent and these now exceed 61 percent of Pakistan’s GDP.

By observing austerity, China has now become one of the leading economic powers.

Austerity has transformed China from an under-developed to a developed country within a span of six decades. Will Pakistan ever get a leader who can curtail waste and unnecessary expenses, motivate the nation to live within the means and steer it to progress and prosperity? Unless we learn to do so, debts will continue to mount, adding further to the poverty of an already impoverished nation.

The writer is a freelance columnist based at Islamabad.

E-mail: alauddinmasood@gmail.com

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Gwadar: A gateway to minerals.

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Verily, His command, when He intends a thing, is only that He says "Be!" - and it is! (Al-Quran)