Former Mining Minister of Punjab, Ibrahim Hasan Murad, has announced the discovery of an extensive gold reserve in the Attock district, estimated to hold 32.64 tons of gold, valued at approximately 800 billion Pakistani rupees (USD 2.87 billion), according to “The Economic Times”.
The newly discovered reserves span a 32-kilometer stretch, representing a potential turning point for Pakistan’s mineral resource development.
The Geological Survey of Pakistan conducted a thorough sampling of 127 sites, confirming the substantial gold deposits. “This milestone marks a significant step towards unlocking Pakistan’s mineral wealth, setting the stage for economic revitalization and new opportunities for future generations,” Murad stated on social media platform X, formerly Twitter.
Economic Potential of Gold Reserves
The economic significance of the discovery is immense, particularly for a nation grappling with financial crises. These reserves have the potential to fuel economic growth, create employment opportunities, and address critical issues in sectors like health and education.
However, unlocking this potential will require strategic planning, investment, and efficient resource management.
Pakistan’s economy faces multiple challenges, with the unemployment rate surging from 1.5% to 7% over the past decade. Women, in particular, face greater barriers to employment due to the country’s conservative social norms. “ARY News,” stated that Pakistan needs to generate 1.5 million jobs annually to meet growing employment demands. Yet, the country’s Gross Domestic Product (GDP) growth remains insufficient to support the health and education sectors.
In addition to unemployment, inflation continues to rise, further straining households. The Pakistan Bureau of Statistics (PBS) reported a year-on-year increase of 3.97% in weekly inflation. To reduce youth unemployment, the Planning Commission recommends a 6% reduction in inflation, while addressing women’s employment challenges would require a 17% decrease.
In Pakistan-occupied Gilgit-Baltistan (PoGB), widespread youth unemployment remains a critical issue, despite the region’s natural beauty and economic potential. Many university graduates in the region struggle to find meaningful employment, exacerbating socio-economic concerns.
Global Context
Pakistan’s gold discovery joins a growing list of significant global resource findings. Since 2014, Russia has been stockpiling gold to shield its economy from potential sanctions, while China recently unveiled a massive gold ore deposit in Hunan province, estimated to be worth USD 83 billion. This deposit, potentially the world’s largest, contains up to 1,100 tons of gold.
As countries like Pakistan, Russia, and China ramp up their resource extraction, the global economy could experience a shift in the balance of economic power. Pakistan’s newfound reserves have the potential to reposition the country as a key player in the global gold market, provided the government effectively manages these resources. With gold emerging as a critical hedge against financial volatility, this discovery could reshape international economic dynamics, underscoring the strategic importance of natural resources in the modern global economy.
These developments highlight a broader trend of nations capitalizing on natural resources to bolster economic resilience amid global geopolitical tensions. Gold, a time-tested store of value, is becoming increasingly crucial in buffering national economies against inflation and economic instability.