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 Muhammad Usman Arshad & Muhammad Mobeen

Pakistan's Natural Resource Crisis and its Socio-Economic Implications amidst Regulatory
Challenges

1Muhammad Usman Arshad, 2Muhammad Mobeen

1st Scholar, Department of Political Science, University of the Punjab, Lahore, Pakistan
usmanarshaduoe@gmail.com
2nd School of Integrated Climate System Sciences (SICSS), University of Hamburg, Germany,
muhammad.mobeen@studium.uni-hamburg.de
KEYWORDS ABSTRACT

Natural Resources,
Economic Policies,
Resource Management,
Institutional Capacity
ARTICLE HISTORY
Date of Submission: 21-12-
2023
Date of Acceptance: 15-03-
2024
Date of Publication: 31-03-
2024
Funding
This research received
no specific grant from
any funding agency in
the public, commercial,
or not-for-profit sectors
Pakistan has an abundance of natural resources that might serve as the cornerstone
of its economic growth, but bad management decisions have left much of their
potential unrealized. The nation is rich in resources and has fertile land, but
structural inefficiencies, corruption, and loose rules prevent these resources from
being used effectively. This promotes social inequality, political instability, and
environmental damage in addition to impeding economic progress. Reforms aimed
at institutional capacity, regulatory frameworks, and governance structures must
be implemented immediately. Pakistan has to prioritize inclusive economic
policies, sustainable resource utilization, and transparent and responsible resource
management methods in order to solve these issues. To improve regulatory
frameworks and revamp governance structures, extensive changes are required.
Enhancing institutional capabilities is essential to ensuring that these changes are
implemented successfully. Pakistan may realize its full potential by adopting
resource management approaches that are responsible and accessible. This entails
reducing social inequalities, encouraging environmental sustainability, and
encouraging inclusive development. In addition to promoting economic growth,
these measures will increase stability and prosperity for masses. Pakistan must take
immediate action to use its natural resources for the benefit of current and future
generations.

Correspondence Muhammad Usman Arshad

Email: usmanarshaduoe@gmail.com
Volume-Issue-Page Number 2(1) 15-32
Citation Arshad, M. U., & Mobeen, M. (2024). Pakistan's Natural Resource Crisis and its Socio-
Economic Implications amidst Regulatory Challenges. Journal of Humanities, Health and
Social Sciences, 2(1), 15-32
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1.0 Introduction
Pakistan is a nation endowed with abundant natural resources. The natural resources
inside the nation play a crucial part in making significant contributions to the overall economy
of Pakistan. It serves the purpose of facilitating economic consumption or production (Holling
& Meffe, 1996). However, the appropriate use of natural resources is vital for the growth of the
country's economy and the enhancement of development. China and other nations are also
expressing significant interest in investing in Pakistan with the aim of capitalizing on the
country's natural resources (Lockwood et al., 2010). This strategic move is advantageous for
Pakistan, as it not only generates employment opportunities but also contributes to overall
economic growth. Official reports indicate that the appropriate utilization of natural resources
further enhances the country's economic performance. Pakistan is a nation endowed with
abundant natural resources, and its geographical positioning makes it an optimal economic
center for neighboring nations, facilitating commerce and resource utilization. Natural
resources include all naturally occurring resources that do not need human intervention for
their production. However, their effective use has led to several human creations. The resources
include the natural gas supply, oil, coal, hydro power potential, iron ore, salt, limestone, and
copper (Irfan, 2007).
Natural resources are integral components of humanity's biodiversity and are
safeguarded inside designated nature reserves. Natural resources are extracted from the natural
environment and used with little alterations (Hussain et al., 2017). This encompasses the origins
of esteemed attributes such as economic and industrial use, visual appeal, scientific significance,
and cultural worth. The Earth encompasses several elements such as sunlight, atmosphere,
water, land, minerals, flora, and fauna. Certain regions, such as the rainforest located at Fatu-
Hiva, often exhibit a rich array of biodiversity and geo diversity within their ecological systems.
Natural resources may be categorized using several classification methods (Dixon & Perry,
1986). Natural resources refer to the many elements and components that are present in the
environment and may be used for various purposes. At its base level, every artificially created
product is comprised of natural resources. Natural resources can exist in two distinct forms: as
independent entities, such as fresh water, air, or living organisms like fish, or as products that
are converted by extractives industries into economically valuable forms that require
processing in order to obtain the resource. Examples of such resources include metal ores, rare-
earth elements, petroleum, timber, and various forms of energy. Certain resources possess the
characteristic of renewability, allowing for their use at a certain pace and subsequent restoration
via natural processes. Conversely, several extractive industries mainly depend on non-
renewable resources that can only be exploited once (Hussain et al., 2009).
The term "natural resource management" often encompasses the administration of
natural resources, including land, water, soil, plants, and animals. This field of study places

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significant emphasis on the impact of management practices on the well-being of current and
future generations (Hassan, Xia, Huang, et al., 2019). Natural resource management involves
the strategic management of the interactions between humans and natural environments. The
concept integrates land use planning, water management, biodiversity protection, and the long-
term viability of enterprises such as agriculture, mining, tourism, fisheries, and forestry. It
acknowledges that individuals and their means of living depend on the well-being and
efficiency of our natural environments, and their responsibilities as caretakers of the land are
crucial in preserving this well-being and efficiency. The word natural resource management is
often used to refer to the management of a specific resource for human utilization, as opposed
to the management of the whole ecological system. The primary goal of natural resources
management is to ensure the long-term sustainability of natural resources for future
generations. This entails the appointment of ecosystem managers who are responsible for
balancing the use and conservation of natural resources over an extended period of time
(Mahmood & Mirza, 2007). The equilibrium of resource allocation within an ecological system
is susceptible to fluctuations across several geographical and temporal dimensions. It is
important to take into account several dimensions, including watersheds, soils, flora, and fauna,
both individually and in the context of a landscape. Diverse natural resources are used for
sustenance, power, and habitation (Hassan, Xia, Khan, et al., 2019).
The inception of contemporary ideas pertaining to economic development may be traced
back to the 1950s and in the 1960s, there was a notable absence of natural resources and the
environment. It was previously postulated that economic production flows and rates of output
growth were contingent upon the utilization of services supplied by capital and labor (Ali et al.,
2021). Net investment has the potential to enhance capital via the combination of domestic
savings and foreign capital inflows. Growth theory revealed possible "limits to growth" where
the rate of growth in output per person fell as capital per person increased until a steady state
was reached. However, these limitations on expansion were not associated with the availability
of natural resources and the environment. From the late 1960s onwards, there was a growing
recognition of the significance of the environment and natural resources in shaping economic
progress (Sufi et al., 2011). Initially, natural resource and environmental economics focused on
the interfaces between the natural and economic worlds, particularly in relation to issues of
growth constraints. In the latter part of the 1970s, scholars in the field of development economics
began a thorough reconsideration of the neoclassical growth model. This shift was prompted
by the recognition that macroeconomic policy suggestions would be insufficient without
considering the inclusion of environmental policy components. Over the course of time, the
development of theories pertaining to growth with diverse natural resource inputs and
environmental consequences has been significantly advanced due to the collaborative efforts of
professionals in both fields (Farooq et al., 2007)

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While existing literature dwell on available resource and their geographic distribution
and emphasizes over uncapping new resources, there is dire need to look into fill the gap with
respect to management and governance crisis in natural resource management (Van
Steenbergen & Oliemans, 1997). Official reports indicate that the appropriate utilization of
natural resources further enhances the country's economic performance This study focuses on
catching gap by understanding the necessity of effective utilization of available natural
resources at optimum level to coup up with various economic and social dilemma and
sustainable growth (Dove & Rao, 1990)
Aims and Objectives
✓ To analyze the root causes of poor resource management in Pakistan.
✓ To evaluate the impact of mismanagement on economic growth and environmental
sustainability.
✓ To propose policy recommendations for enhancing transparency and accountability
in resource governance.
✓ To assess the feasibility of sustainable resource utilization practices within the
Pakistani context
2.0 Literature Review
2.1 Gist View of Natural Resources of Pakistan
Pakistan has ample natural resources and its advantageous geographical location makes
it an optimal hub for surrounding countries aiming to participate in economic endeavors and
use the wealth of our region (Hassan, Xia, Khan, et al., 2019). Pakistan has a very desirable
geographical position due to its strategic location between Central Asia, South Asia, and the
Middle East. Furthermore, the region has substantial natural resources throughout the country.
The nation of Pakistan has significant reserves of diverse minerals and natural resources,
including coal, gold, copper, bauxite, mineral salt, chromite, iron ore, and many more. Pakistan
is involved in the extraction of ruby, topaz, and emerald, with other valuable and semi-precious
minerals (Malkani & Mahmood, 2016). Natural vegetation is often seen in the presence of
agricultural goods, including wheat, rice, cotton, and sugarcane, fruit, eggs, milk, vegetables,
mutton, and cow meat. Studies indicate that optimal use of natural resources may be achieved
via several sectors such as textiles, medicines, food processing, construction materials, paper
products, fertilizers, and other industries. Mineral extraction from a specified mine is a
commercial operation or a systematic method used for the purpose of extracting minerals or
coal. However, it is crucial to use this approach in Pakistan to promote economic growth owing
to the ample availability of natural resources (Malkani et al., 2016).
2.2 Governance and NRM
The effect of natural resource management on poverty is influenced by governance,
which may either be beneficial or detrimental. The efficiency, efficacy, and equality of natural
resource distribution are determined by governance systems such as laws, institutions, political

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systems, social networks, and cultural norms. Producer-friendly institutions may boost growth,
whereas 'grabber-friendly' institutions might hinder it. Corruption may prolong poverty due to
tough competition for resources (Mehar et al., 2018). Effective and functional markets may
convert natural resources into financial assets, expanding alternatives for vulnerable
individuals. Additionally, market failure due to insufficient information, segmentation,
exclusion, property inequality, and pricing/tax regimes may perpetuate poverty. Centralized
decision making in natural resource management may lead to corruption and lack of
transparency, contributing to convictions. Public representatives may establish resource
management and distribution policies and provide monitoring via legislative processes.
Additionally, natural resource income are typically unpredictable. The Natural Resource
Endowment and Poverty Geography in Pakistan. The instability of natural resource rents in
underdeveloped regions necessitates a smooth spending pattern to maintain key development
expenditures, even during revenue cycle busts. Simple, transparent, and politically accepted
income transfer systems with independent supervision are essential (Malik & Sukhera, 2012)
2.3 NRM and Economic Development
Over the course of time, there has been a significant amount of scholarly interest and
focus on the correlation between natural resources and economic progress. Researchers have
done empirical and theoretical studies on the impact of natural resources on economic
development. However, both the theoretical and empirical efforts provide unsatisfactory
outcomes (Ali & Zulfiqar, 2018). One perspective posits that the intensity of economic
expansion is positively correlated with the increase in resource rents. A direct relationship exists
between the rise in resource rents and the generation of fresh employment opportunities, an
escalation in exploration spending, and an enhancement in infrastructure and economic
progress. These studies provide support for the resource blessing thesis, asserting that natural
resources are a universal solution for economic growth and substantiating the concept,
respectively (Asif & Majid, 2018). The alternative perspective focuses on the negative
correlation between economic growth and resource rents. The reason for this phenomenon is
that reliance on resources fosters the adoption of rent-seeking strategies, which may have
detrimental consequences for the potential for growth. The focus of these ongoing
investigations is to the notion known as the "resource curse." Nevertheless, it is important to
note that gross domestic product (GDP) should not be seen as the only determinant of economic
growth. Elements such as annual fluctuations in natural resources, government debt, trade
globalization, political stability, and the adoption of renewable energy sources may also serve
as indicators for predicting human development in Pakistan (Malkani & Mahmood, 2017)
2.4 Management Crisis in Natural Resource Management (NRM)
When it comes to the administration of its natural resources, Pakistan is not only one of
the nations with the most abundant natural resources in the world, but it is also one of the least
manageable. The nation has a wealth of critical resources, including as energy, agriculture,

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minerals, people, and topography; yet, in contrast to industrialized nations, these resources
have not been used to their full potential owing to ineffective administration (Khan et al., 2016).
This disheartening circumstance is the result of a number of defects, both chronic and acute,
that have resulted in bad administration of the nation ever since it was founded, with the
exception of a few short periods of economic boom. Extensive political competition and
instability, deteriorating law and order, and widespread corruption have all contributed to the
current predicament, which has resulted in a stalemate in terms of resource development.
Pakistan is dependent on foreign assistance and debt, that it is experiencing a deficit in trade,
that it is experiencing an acute energy crisis to operate industry, and that it is experiencing
water stress for agriculture, to mention a few issues. This is in contrast to the economic potential
of its natural resources (Liang et al., 2023).
3.0 Methodology
For this study on understanding the availability of natural resources and poor
management and its socio-economic fallout, a descriptive research design was employed. This
design aimed to thoroughly explore and elucidate the phenomena under investigation,
providing a comprehensive picture of the intricacies involved. The research philosophy
adopted for this study was interpretivism. In the context of natural resource management in
Pakistan, interpretivism facilitated an in-depth understanding of the socio-economic
implications of mismanagement of available resources especially economic repercussion.
Data collection involved a multidimensional approach, incorporating information from
various sources. Secondary data were gathered from scholarly articles, reports, books, and
available data sets, including indexes related to economic development. The collected data
underwent rigorous analysis utilizing Contextual analysis of data gathered from various
sources like scholarly articles, reports, books, and available data sets, including indexes related
to financial transparency and corruption focusing on understanding the socio-economic context
surrounding mismanagement of natural resources in Pakistan. This approach allowed for a
nuanced exploration of the factors influencing underutilization of available resources in
Pakistan
Ethical considerations were paramount throughout the research process. Measures were
taken to ensure the confidentiality and anonymity of data sources, especially in sensitive
materials obtained from reports, books, and scholarly articles. Informed consent was not
applicable in this case, as no interviews were conducted. However, efforts were made to present
findings accurately and responsibly, avoiding any misrepresentation or bias. Through the
utilization of a descriptive research design grounded in interpretivism, coupled with a
comprehensive data collection and analysis process, this study provided valuable insights value
of natural resource availibity and role in prosperity of Pakistan and its socio-economic fallout.
Ethical considerations were central to the research process, ensuring the integrity and
credibility of the findings.

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4.0 Findings and Results

4.1 Natural Resource Production to GDP (%)
The economic and social growth of a nation is significantly impacted by many resources,
such as minerals, electricity, water, and forests. The presence of natural resources is a
prerequisite for economic and social progress, but it alone is not enough. If a nation has
abundant resources and effectively utilizes these resources, it increases the potential for both
economic and social advancement. Natural resources have been shown to have a beneficial
correlation with both economic and social growth.

Graph 1 Source: World Bank on April of 2024

4.2 Mineral Resources
The Pakistan Mineral Development Corporation, founded in 1974, is the regulatory

Natural Resource Income %

2.5
2.14619
1.99953
2

1.43562
1.5 1.3034
1.22523 1.24124
1.10681 1.12387
0.96533
1

0.5

0
2013 2014 2015 2016 2017 2018 2019 2020 2021

authority responsible for facilitating and promoting the development of the mining industry.
The Gemstones Corporation of Pakistan Limited, founded in 1978, functions as an authorized
organization tasked with protecting the interests of relevant parties engaged in the extraction
and refinement of gemstones. Baluchistan is the province in Pakistan with the highest
concentration of mineral resources. Coal deposits in the Thar area have been recently found by
the province of Sindh. Khyber Pakhtunkhwa has a wealth of valuable gemstones. The area in
question is home to the bulk of mineral gems that have been found in Pakistan. Apart from oil,
gas, and some minerals used in nuclear energy, which are subject to direct regulation by the
federal government, the extraction of other minerals is within the jurisdiction of the provinces.
Currently, Pakistan is involved in the extraction and refinement of around 52 minerals.

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Table 1 Mineral Distribution throughout Pakistan

Region Mineral Description

khushab Bauxite Bauxite extraction is best from Nilawahn to Khura in

the southern Salt Range. From east to west, alumina and silica
concentrations decrease.

Jhelum Bentonite In Jhelum District, Jalalpur Sharif and Dina villages are
mining Siwalik rocks. Attock has working deposits. Pabby
Hills near Tainpur is sandy.

Mansehra Calcite Punjab deposits form veins in limestone fractures.

Attock, Rawalpindi, Chakwal, Jhelum, and D.G. Khan. Pure
calcite is prevalent in the Attock District's Kala Chitta Range.

Daud Khel Celestine Celestite is discovered in irregular veins three to four

km east and northeast of Daud Khel in Punjab.

Salt Range Coal The Salt Range in Punjab Province has substantial coal
resources. The coal present in the Punjab region has a sub-
bituminous composition.
Kalabagh Dolomite The Barbara deposits at Kalabagh are a major Mianwali
District deposit. Dolomite deposits are in Datta Nala, 11 km
northeast of Makerwal. Doya-Lunda, Normia, and Punnu are
near Mianwali's Mulla Khel and Buri Khel coal mines.

Coal, often known as black gold, is found in significant quantities in Thar, Chamalang,
Quetta, and several other regions. Thar deposits are expected to have a volume of around 850
trillion cubic feet. The Thar area in Pakistan has a substantial quantity of coal; yet, a fraction of
it may exhibit substandard quality. The coal deposits have the potential to be used for power
generation for the next century, eliminating the need for other fuels like hydro or oil. In the
Punjab area, Pakistan has recently found a single coal seam of substandard quality and four
coal seams of moderate to low quality. It is expected that gas fields will last for another twenty
years. The Sui gas field in Pakistan is the largest, accounting for 26% of the nation's overall gas
production. The first identification of Sui's gas deposits occurred in 1953. The volume of
production on a daily basis is 19 million cubic metres. Untapped reserves of oil and gas are
present under the barren mountainous regions of Baluchistan and the sandy topography of

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Sindh. In the areas under consideration, Karachi, Lahore, Faisalabad, Multan, Rawalpindi, and
Islamabad emerge as the principal users of natural gas.

Fig 1 Demographic Distribution of Mineral across Pakistan

In late 1952, the first oil field in Pakistan was developed in Baluchistan, near a large Sui
gas field. It was not until the early 1960s that the Toot oil field in the Punjab area was identified.
The geographical region under consideration has an area of 122.67 square kilometers (47.36 sq
mi). The prospecting and drilling of the Pakistan Petroleum and Pakistan Oilfields fields began
in 1961, with support from the Soviet Union. Following this, drilling activities were initiated in
Toot in 1964. Reqo Diq, Baluchistan has deposits of copper and gold. Antofagasta, the entity
now in possession of the Reqo Diq field, has set a target to attain an initial yearly production of
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170,000 aluminum output of 350,000 metric tons and a gold production of 900,000 metric tons.
Daht-e-metric tons of copper and 300,000 ounces of gold. The project has the capacity to yield
an annual Kuhn, Nokundi, located in the Chaghi area, and is also known for its copper
resources.
4.3 Power sources
Pakistan has been naturally gifted with a favorable environment. The generation of
hydroelectric power has more environmental benefits. The building of dams in the northern
and northwestern Parts of Pakistan is facilitated by suitable circumstances. Hydroelectric power
may be produced to create steep slopes in rivers and canals. The Ghazi Barotha project, located
along the Indus River, serves as an illustrative example. Both the governmental and commercial
sectors in Pakistan have put up proposals for the enhancement of hydroelectricity production.
Pakistan's total hydroelectricity output is 4963 Megawatts. Pakistan has a production capacity
of 30000 MW, which is reliant on its river systems, including the Indus, Jehlum, and Chenab
rivers
.

Nuclear Energy LPG

Hydro Electricity 1.30% o.5%
11.8% Other
0.10%

Coal
6.7%

Gas
47.6%

Oil
32%

Gas Oil Coal Hydro Electricity Nuclear Energy LPG Other

Chart 1 Contribution of Available Resources in Power Generation

Solar energy is the term often used to describe the energy obtained from the sun. The
climate of Pakistan is distinguished by elevated temperatures and aridity. Pakistan is
geographically situated in close proximity to the Tropic of Cancer, leading to a mostly vertical
sunshine distribution throughout the year. The prevailing climatic conditions are quite high.
The explanation for the longer length of the summer season in Pakistan compared to winter is
as follows. The sun often ascends. The world society relies significantly on atomic energy as its

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 Muhammad Usman Arshad & Muhammad Mobeen

primary driver of advancement. This particular energy source has a notable degree of
complexity and encompasses several areas of scholarly investigation. The exponential
expansion of population sources is concurrently escalating. Hence, it serves as a crucial energy
resource in underdeveloped nations

Fig 2 Distribution of Non- Renewable Resources in Pakistan

There is a great deal of care put into the collection and processing of precious gemstones
for sale on international and domestic markets. The heart of this activity is in the Khyber-
Pakhtoonkhwa area. Among the minerals listed above are Actinolite, Hessonite, Rodingite,
Agate, Idocrase, Rutile, Aquamarine, Jadeite, Ruby, Amazonite, Kunzite, Serpentine, Azurite,
Kyanite, Spessartine (garnet), Beryl, Marganite, Spinel, Emerald, Moonstone, Topaz, Epidote,
Pargasite, Tourmaline, Garnet (alamandine), Peridot, Turquoise, Quartz (citrin and others), and
Vesuvianite. The value of the diamonds' exports exceeds $200 million.
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4.3.1 Renewable energy resource utilization

In terms of solar and wind power generation, Pakistan has a significant amount of
potential. The present demand for energy in Pakistan could be satisfied by using just 0.071
percent of the country's land area for solar photovoltaic (solar PV) power production, as stated
by the World Bank. The wind is another resource that is plentiful. There are a number of wind
corridors in Pakistan that are well-known, and the average wind speed in ten percent of the
country's windiest locations is 7.87 meters per second. In spite of the fact that a lot of projects
have been completed successfully, the installed capacity of solar and wind energy in Pakistan
is only little more than 1,500 megawatts.

Graph 2: Contribution of Renewable Resources in National Grid

% of Electricity from Renewables Resources

35

34
33.7
33

32
31.43
31 31.06 31.01 31.1
30.33
30 29.99
29.46
29

28

27

26
2008 2009 2010 2011 2012 2013 2014 2015

For the purpose of accomplishing such goals, it is necessary to implement a substantial

and quick growth of solar and wind power via competitive bidding, which would result in a
reduction in prices. It is imperative that efforts be made to limit the amount of electricity
generated by thermal plants that are not economically viable, particularly those that use heavy
fuel oil, and that investments in hydropower be maintained.
4.3.2 Human Resource
During the signing ceremony of a joint venture agreement between Pakistan Mineral
Development Corporation (PMDC) and the US-based Miracle Saltworks Collective
Incorporated, the prime minister emphasized that:
Our human resource has more importance than our material resource integration of human
resources and mineral resources will enhance Pakistan's stability, prosperity, and growth. The objective

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of this agreement is to create a dedicated facility for the purpose of crushing and packaging pink salt,
with the ultimate goal of exporting it.
4.4 The Impact of Resources on Economic Diversification
The use of natural resources has the potential to boost productivity levels via the
adoption of modern industrial techniques. If a country has ample resources, it indicates a higher
capacity to enhance production capabilities. Agriculture. The expansion of the agricultural
industry requires the availability of essential natural resources, including arable land, favorable
climatic conditions, and sufficient water resources. Allocating resources is necessary for the
growth of agro-based firms. A strong correlation exists between the expansion of the
agricultural sector and the expansion of the industrial sector. The availability of energy
resources, such as oil and gas, is crucial for facilitating the progress of industrial development.
The identification and use of iron and steel deposits provide significant benefits to the
development of the industrial sector. There is a significant dependence on natural resources by
many industries, such as furniture and fishing. Pakistan actively participates in the exporting
of many goods, such as food items, textile products, petroleum, and other commodities,
primarily leveraging its large reserves of natural resources. The use of natural resources plays
a crucial role in enhancing a nation's foreign currency reserves. The utilizations of varied
natural resources is necessary for the development and progress of basic infrastructure,
including water, sanitation, roads, energy, and power. The development of robust
infrastructure is crucial for promoting economic and social advancement inside a country.
4.5 The influence of resources on social development are significant
The process of extracting and transporting resources plays a significant role in the
development of a nation's transportation industry. Various kinds of transportation, including
railroads, highways, canals, and air travel, play a substantial role in fostering the economic and
social advancement of a country. Interpersonal exchange. The main driver of economic
development is the availability and effective use of resources. The aforementioned phenomena
leads to the development of communication systems. Ensuring the accessibility and proper use
of natural resources is crucial for improving the overall well-being of the population.
Environmental resources have a pivotal role in fostering economic development, so helping to
the achievement of a superior standard of living. The population has greatly benefited from the
significant job possibilities provided by natural resources like as forests, fisheries, and oil
extractions. The proliferation of employment opportunities plays a significant role in fostering
the socio-economic development of a country. The nation's urbanization has been expedited by
the increasing use of natural resources. It has created new urban hubs and enhanced existing
ones.
4.6 Crisis of Natural Resource Management
The declining condition of law and order has had a substantial influence on the whole
economy, particularly in terms of the administration of natural resources. The unstable

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situation in Baluchistan presents substantial obstacles to the efficient use of resources. Although
the Gawadar port is strategically located, it has not yet achieved full operational status.
Furthermore, the influence extends to other mineral exploration initiatives as well. The adverse
impacts on the potential tourism industry have been seen in the northern areas due to the
prevalence of terrorism. The issues highlighted above about insufficient management have led
to Pakistan being placed in an adverse position both inside its own borders and on the global
stage. The socio-economic conditions in South Asia are marked by a pessimistic perspective.
The current GDP growth rate is seen to be 2.2 percent, which is rather low and is among the
lowest in the area. There is an expected trade imbalance of around $16 billion, accompanied by
a persistent inflation rate of 27 percent, which stays in the double digits. Moreover, it is
noteworthy that the proportion of individuals living below the poverty threshold is about 39
percent, while the current jobless rate is at 23 percent.
Furthermore, it lacks a positive reputation throughout the global community. It ranks
136th out of 139 nations in the Global Competitive Index. Furthermore, it is situated at the 157th
rank among 192 nations in the Human Development Index, as documented by the United
Nations Development Programme (UNDP). Moreover. The country has encountered a notable
dependence on external aid and indebtedness, leading to an adverse effect on its standing
within the global community. However, despite Pakistan's crucial role in the Western
geostrategic framework and its participation in the war on terror, the allies only provide limited
financial support that only addresses a fraction of the potential advantages that might be
obtained by using Pakistan's natural resources. Nevertheless, the primary ramification so far is
to the energy challenges faced by Pakistan. There is a substantial shortage in the accessibility of
electricity, natural gas, and petroleum. Load shedding is the occurrence of electrical demand
exceeding the available supply. The power shortage has a magnitude ranging from 6000 to 7000
MW, exerting a substantial influence on the industry and eventually leading to diminished
exports and a decline in economic activity. The adverse ramifications of insufficient resource
management on the economy and society of the country need a rigorous and all-encompassing
approach to rectify the prevailing pattern. The implementation of a pragmatic approach and
policy orientation has the potential to facilitate the nation's attainment of resource self-
sufficiency, hence reducing dependence on foreign aid.
5.0 Discussion and conclusion
Pakistan is blessed with a wide range of natural resources. The region boasts an
impressive abundance of energy resources, encompassing both renewable and nonrenewable
sources, far surpassing the energy reserves of oil-rich Gulf nations (Ahmad et al., 2015).
Pakistan is blessed with a wealth of natural resources, thanks to its favorable geographical and
geostrategic location. The region boasts an impressive abundance of energy resources,
encompassing both renewable and nonrenewable sources, surpassing even the energy reserves
of oil-rich Gulf nations. Among the global community of over 200 nations, this nation boasts

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impressive resources (Latif & Ramzan, 2014). It is home to the second largest salt mines,
substantial coal deposits, and ranks fifth in reserves of copper and gold. Additionally, it has the
seventh largest capacity for wheat and rice production. Boasting a substantial number of young
individuals, this country holds the impressive title of being the sixth most populous nation
globally. If these resources had been properly managed, this nation would have been one of the
most prosperous countries in the world. The analysis of Pakistan's natural resources highlights
the vast potential that remains untapped due to mismanagement (Hassan et al., 2020).
Furthermore, the inadequate policies enacted by successive governments have led to
substantial difficulties, despite the availability of ample resources (Malkani, 2013). The energy
business exemplifies insufficient management. Thermal power serves as the predominant
means of energy generation, heavily dependent on the importation of more than 80 percent of
the global oil supply. The underutilized capacity of the second largest coal deposit on a
worldwide scale remains mostly uninvestigated, since its contribution to energy generation is
limited to a measly 2 percent. The coal industry in the United States, China, and India accounts
for more than 60 percent of their total power generation, mostly due to its cost-effectiveness.
This illustrates that other countries attach great significance to the expense of generating
electricity. However, it would be unfair to just assign the blame for insufficient resource
management to political factors (Sheikh, 2009). The adverse circumstances may be ascribed to
a combination of bureaucratic delays and instances of corruption. The current condition of
standstill in hydroelectric projects, the Thar coal project, and oil exploration initiatives may be
attributed to bureaucratic hurdles. The deployment of solar and wind energy projects by the
Alternative Energy Development Board has not yielded any significant advancements.
Similarly, corruption has had a profoundly detrimental effect. The deadlock in the Riko deq
project exemplifies this situation. Based on the Corruption Perception Index 2010 by
Transparency International, Pakistan is ranked 34th, indicating a potential hindrance to foreign
direct investment (Nawaz et al., 2023).
The report cited above provides evidence that Pakistan is not experiencing poverty, but
rather facing challenges in governance (Kahlown & Majeed, 2003). The ineffective
administration of natural resources can be ascribed to various factors, including political
instability, political indecisiveness or divergence, a dearth of foresight and strategic planning,
flawed policies, bureaucratic obstacles and corruption, inadequate human resource
development, and a worsening law enforcement situation. The convergence of these issues has
led to both insufficient stewardship of natural resources and inefficient governance of the
country. Pakistan's poverty is not a result of poverty itself, but rather a consequence of its
inadequate management of natural resources (Malkani et al., 2017). The country has a wealth
of natural resources, including energy, minerals, agriculture, and human capital, which holds
the capacity to make a substantial contribution to its economic growth. Nevertheless, the
economy has been shown in a negative light and has been seen unfavorably by foreign sources

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due to ongoing shortcomings in both vision and policy (Khan et al., 2013). Hence, it is crucial to
confront the significant challenge of insufficient management of natural resources, not alone to
alleviate the accompanying hazards but also to achieve economic autonomy and national
prosperity. Through the effective surmounting of this challenge, Pakistan is positioned to place
itself as a renowned international entity distinguished by its attributes of stability, progress,
and prosperity (Iqbal et al., 2022).
Contributions
Muhammad Usman Arshad: Problem Identification, Literature search, Methodology
Muhammad Mobeen: Drafting and data analysis, proofreading and editing
Conflict of Interests/Disclosures
The authors declared no potential conflicts of interest w.r.t this article's research,
authorship, and/or publication.
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