In Balochistan and Pakistan-occupied Kashmir, China’s mining flags fly high while local communities remain entrenched in poverty. Despite big announcements of investment and development, Pakistan’s courting of Chinese mining corporations promises little for ordinary citizens who remain spectators to their own resources being extracted. The recent renewal of Saindak copper-gold mine contracts and the enthusiastic pursuit of further Chinese investment in Pakistan’s mineral sector reveal a troubling pattern. What Pakistan won’t gain from these arrangements deserves closer examination.
Pakistan will not gain equitable profit sharing. The Saindak copper-gold project, operational since 2001 and repeatedly extended, has allegedly generated $2 billion between 2002 and 2017. Yet Balochistan remains Pakistan’s poorest province.
The contract extension to Metallurgical Corporation of China for an additional 15 years follows a familiar pattern where the majority of profits flow outward rather than circulating in local economies. Pakistan won’t gain significant employment opportunities. While government officials trumpet job creation, these projects typically import specialized Chinese workers, offering only limited low-skill positions to locals. The technology transfer promised rarely materializes, ensuring continued dependence rather than building domestic capacity.
Environmental protection remains elusive. Villagers in Tharparker district recently protested coal mining activities that have reportedly damaged local ecosystems, contaminated groundwater, and created serious health hazards.
According to local reports, between 2017 and 2024, an estimated 2,000-2,500 infant deaths occurred in areas affected by coal mining and wastewater discharge. Pakistan’s mineral agreements do not calculate the true environmental cost. Transparency will continue to be sacrificed. An analyst notes that “The contractual process and terms with the Chinese companies are not transparent. The Balochistan government is peripheral to these agreements.” This opacity prevents proper oversight and accountability, allowing exploitation to continue unchallenged.
Community consent is perpetually ignored. From Balochistan to Sindh, local populations repeatedly express opposition to these projects. Opposition leaders pointedly observed that Chinese economic projects aimed to colonize the province. The proposed PPP model for ruby mining in Kashmir allocates a mere 10% equity to local communities while Chinese partners claim 70%, hardly a fair distribution for resources located on indigenous lands.
Infrastructure development fails to materialize beyond mining necessities. Roads, electricity, and facilities built typically serve extraction operations rather than addressing community needs. Despite years of mining activity, the region maintains one of the lowest human development indices in Sindh province. Resource sovereignty is compromised. Pakistan’s willingness to offer offshore oil and gas blocks on a government-to-government basis without competitive bidding suggests desperation rather than strategic partnership. While facing an economic crisis, Pakistan surrenders long-term resource control for short-term cash infusions.
Sustainability remains an afterthought. The agreements focus on extraction without meaningful restoration requirements or transition plans for when resources are depleted. Communities face the prospect of environmental degradation outlasting the economic activity that caused it. Domestic processing capacity isn’t prioritized.
Raw materials are often exported rather than processed locally, depriving Pakistan of value-added industries and associated economic benefits. The recently proposed mineral industrial park could change this pattern, but history suggests skepticism is warranted.
Security costs continue mounting. The escalating militant resistance to Chinese presence, including attacks on the Pakistan Stock Exchange building and Chinese consulate in Karachi, imposes additional security burdens on an already strained national budget. Pakistan’s leaders appear oblivious to these deficiencies. Government representatives abruptly end conversations when confronted with villagers’ complaints about coal mining impacts. This response typifies the government’s approach to criticism – avoidance rather than engagement.
The Chinese investment model in Pakistan’s mineral sector represents extraction without development. While Pakistan’s foreign reserves may temporarily benefit, and a select elite may profit, the broader population will continue wondering why their resource-rich regions remain impoverished. The China-Pakistan Economic Corridor (CPEC), worth $46 billion, includes mining projects and has been touted as a game-changer. Yet the lived experience of populations in mining regions tells a different story. The unchanged reality of poverty and underdevelopment in these areas raises serious questions about who truly benefits from these massive investments.
In the Tapaka area, protests against coal mining have continued for years with no meaningful response from authorities. The devastating impact on local environments includes polluted pastures, contaminated groundwater, and destroyed ecosystems. Yet government officials continue to characterize these projects as blessings while ignoring the suffering they cause. Chinese companies receive sweetheart deals that would be unacceptable in other contexts. The 15-year extension granted to mining operations in Balochistan exemplifies how Pakistan’s desperation for foreign investment has led to unfavorable terms. Meanwhile, locals watch helplessly as their natural wealth disappears, leaving behind environmental devastation and unfulfilled promises.
The pattern of resource extraction without corresponding development is painfully familiar in Pakistan’s history. What makes the Chinese investments different is merely the scale and the political cover they receive. Government officials eager to showcase friendship with China are willing to overlook inequities that would otherwise be unacceptable. Until Pakistan negotiates agreements prioritizing domestic interests over foreign expediency, the nation will continue trading permanent resources for temporary relief, mortgaging its children’s inheritance for today’s political convenience. After years of unsuccessful protests, local communities have grown weary but remain unconvinced that mining activities will ever improve their lives.