Khyber Pakhtunkhwa (KP), one of Pakistan’s most resource-rich provinces, holds immense potential for economic growth and development through its abundant mineral deposits. KP is undoubtedly bestowed with a wealth of mineral resources. The province holds up to 52 types of minerals, including a variety of precious stones, industrial minerals, and energy resources such as coal, soapstone, limestone, chromite, graphite, gypsum, phosphate, granite, and silica sand. These diverse geological assets make KP one of the most mineral-rich provinces in Pakistan, thus a significant asset to the overall economic development of the state.

The varied mineral landscape harbours significant mineral deposits that have long been recognised and used up to some extent as a vital economic asset, contributing to regional development as well as the livelihoods of local communities. Among them, some of the notablemining areas are Kurram District, a source of soapstone and limestone; Dara Adam Khel, known for its rich coal reserves; and the Malakand Region, home to various mineral deposits. The Swat Valley, though specifically known for its gemstones, also has an abundance of limestone and marble deposits. These mineral resources are crucial for KP’s economy, supplying its riches to both domestic industries and international markets.

The recently proposed Khyber Pakhtunkhwa Mines and Minerals Bill 2025 plans to capitalize on this potential. It has an ambitious vision for the region. Under this bill government promised to adopt a modernized mining sector with digital licensing, a new Mineral Development Authority, and an expanded Mineral Investment Facilitation Authority (MIFA) to attract major National and international investors. Thus, the bill, if further improved and implemented in letterand spirit, is a road to prosperity, akin to discovering a treasure map in one’s own backyard.

The bill does provide KP with the opportunity to explore and capitalize its natural resources like the well-known and robust mining frameworks of Canada and Australia. But KP needs little improvements to address the concerns of local people. Only then would it stand parallel to Canada’s Indigenous treaties or Australia’s Native Title Act, which ensure that affected communities receive fair compensation and employment opportunities. Without these articles of safeguards included, KP risks repeating Pakistan’s long history of elite capture, where mining capital flows to a select few while local populations see little or no benefits from it. Additionally, if the bill is thoughtlessly implemented without being amended to the needs of locals, KP would also risk repeating the mistakes of Balochistan’s Saindak project, where mining augmented corporations left residents impoverished.

In short, the mineral and mining sector has the potential to provide employment opportunities, support infrastructure development, and contribute a huge chunk to overall revenue generation. The industrial stone sector alone is a multi-billion-rupee industry, with products highly sought after in both domestic and international markets. Therefore, to transform Khyber Pakhtunkhwa’s mineral wealth into a sustainable engine of economic development, local communities mustn’t be merely bystanders but active participants and beneficiaries.

Implementing a robust royalty system is essential, ensuring that a significant portion of the revenues generated from mining activities is allocated directly to the districts where these resources are extracted. This approach not only compensates for the environmental and infrastructural impacts but also fosters a sense of ownership and accountability among local populations.

Moreover, incentivizing local involvement in the mining sector can lead to more equitable development. Establishing training programs and providing access to technology can empower local workers, enabling them to take on skilled roles within the industry. Such initiatives can reduce dependency on external labour and ensure that the economic benefits of mining are more widely distributed.

By integrating these measures into the legislative framework, Khyber Pakhtunkhwa can set a precedence for inclusive and sustainable resource management, ensuring that its mineral wealth translates into lasting prosperity for all its residents.