Identification and the strategic role of stakeholders along mining value chain in Pakistan

Abstract

Pakistan set up two national mineral policies in 1995 and 2012. The first mineral policy was introduced after the discovery of Thar Coal to address the issues regarding mineral assets. After twenty years, it was observed that the National Mineral Policy of 1995 could not address the core issues faced by the mineral industry of Pakistan and there came a need to address the gaps in the policy. Therefore, a new mineral policy with new aims and objectives was introduced in 2012. Furthermore, it was identified that one of the major gaps of both mineral policies was that they were made without the realization and consultation of stakeholders along the mining value chain. With the identification and assessment of the strategic roles of stakeholders in the mineral industry being vital for the formulation of a mineral policy, the purpose of this research was to identify and analyze the role of stakeholders in the mining value chain in Pakistan. Forthwith, a critical review of the mineral policies in general was carried out in this report to analyze the contributing factors towards the failure of the first mineral policy. The result of the second mineral policy was not analyzed because no major FDI has been injected in mineral sector yet. The results of the absence of stakeholders were also compared with the expected outcomes of the mineral policy and the disparities were identified. Strategic and tactical interactions of stakeholders were analyzed to create value loops and virtuous cycles and the presence of positive and negative boosters were also identified. After analysing Pakistan's business environment, a stable business model was created in order to facilitate the formulation of a stable, transparent and equitable mineral policy.