Policy Brief

Title:

 Strategic Mineral Development in Gilgit-Baltistan: A Pathway to Sustainable Growth and Regional Stability

Date:22 May 2025

 Author: Hisamullah Beg 

Executive Summary:

 Gilgit-Baltistan (GB), a geopolitically sensitive region of Pakistan, holds vast reserves of precious and strategic minerals including gold, copper, lithium, and rare earth elements. As global demand surges—especially for green and digital technologies—international and domestic actors are increasingly eyeing GB’s resources. However, weak regulatory frameworks, environmental fragility, and local disenfranchisement pose serious risks. This policy brief outlines key challenges and recommends actionable steps for the Government of Pakistan and GB authorities to ensure mineral development is transparent, sustainable, and locally beneficial.

Key Issues:

Weak Institutional Oversight

 GB lacks a comprehensive legal and institutional framework to regulate exploration, licensing, and revenue distribution, leaving it vulnerable to exploitation.

Marginalisation of Local Communities

 Resource-related decisions are often made without meaningful consultation or participation of local stakeholders, leading to distrust and potential unrest.

Environmental Vulnerability

 The region's mountainous terrain and glacial systems are highly sensitive to mining-induced deforestation, water pollution, and seismic disruption.

Geopolitical and Security Concerns

 Bordering China and India, GB is strategically critical. Unregulated foreign investment or illicit mining could inflame regional tensions or fuel insurgencies.

Future Implications:

Economic Opportunity vs. Resource Curse: GB could either benefit from mineral-led development or suffer from the classic “resource curse” if governance remains weak.

Increased Strategic Interest: China’s involvement through CPEC (China-Pakistan Economic Corridor) may deepen, requiring careful management of sovereignty and local rights.

Climate and Ecological Threats: Unsustainable mining may accelerate glacial melt, increase landslide risk, and degrade key water sources for downstream populations.

Policy Recommendations:

Establish a Gilgit-Baltistan Mineral Authority (GBMA)

Create a regional body to license, regulate, and monitor mining with clear transparency mandates.

Include local representation and technical experts in decision-making.

Enact a Regional Mining Policy

Define legal frameworks for royalties, community benefit-sharing, and environmental standards.

Align with Pakistan’s federal mineral laws but reflect GB’s unique socio-political context.

Ensure Free, Prior, and Informed Consent (FPIC)

Institutionalise community consultations before granting exploration or mining rights.

Offer revenue-sharing mechanisms, local employment quotas, and resettlement safeguards.

Invest in Environmental and Geological Research

Map ecologically sensitive zones and restrict mining in high-risk areas.

Fund local universities and NGOs for continuous environmental monitoring.

Leverage Regional Diplomacy and CPEC Safeguards

Ensure Chinese and other foreign investments respect Pakistan’s environmental laws and GB’s autonomy.

Negotiate local content requirements and tech-transfer agreements.

Conclusion:

 Gilgit-Baltistan stands at a mineral crossroads. With prudent governance, participatory planning, and ecological safeguards, it can transform its natural wealth into a catalyst for sustainable growth, regional stability, and national development. Ignoring these imperatives, however, risks repeating the historical patterns of extraction without developing Indigenous human resources.