Extractive Governance in Khyber Pakhtunkhwa: Policy, Practice, and Challenges in Mines and Minerals Management

Abstract

Khyber Pakhtunkhwa (KP), one of Pakistan’s most mineral-rich provinces, possesses a diverse range of high-value resources including marble, granite, chromite, coal, limestone, and gemstones. Despite this wealth, the sector’s contribution to provincial GDP remains modest, reflecting systemic governance weaknesses, outdated extraction practices, and limited value addition. This paper examines the current state of KP’s mining sector through a multi-dimensional analysis encompassing sectoral profiling, governance and policy frameworks, key challenges, best practices, and policy–practice gaps. Drawing on official data, policy documents, and comparative international experiences, the study identifies persistent issues such as non-transparent licensing, weak regulatory enforcement, environmental degradation, and inadequate community benefit-sharing. It also explores opportunities for reform through digital governance tools, industrial cluster development, sustainable mining certifications, and mandatory community development agreements. The paper concludes that bridging the gap between policy aspirations and practical realities requires integrated reforms focused on transparency, technological modernization, environmental stewardship, and equitable economic inclusion. If strategically implemented, these reforms could transform KP’s mining sector into a driver of sustainable growth, regional competitiveness, and socio-economic resilience.