ISLAMABAD: Pakistan proposed an intergovernmental agreement with Australia to support structured, long-term cooperation in the mining sector, as Islamabad looks to attract investment and develop its mineral resources, according to an official statement on Tuesday.

The issue came up for discussion during a meeting between Pakistan’s Petroleum Minister Ali Pervaiz Malik and the new Australian High Commissioner Timothy Kane. The meeting focused on exploring avenues for enhanced bilateral cooperation, particularly in the mining and gemstones sectors.

Pakistan has positioned mining as a potential engine of long-term growth, following years of underinvestment and stalled projects, and as resource-rich Asian economies increasingly look overseas to secure supplies of critical minerals and diversify investment portfolios.

“The Federal Minister welcomed the strong interest of Australian companies in Pakistan’s mining sector and highlighted the country’s immense untapped mineral potential, particularly in the Tethyan Belt,” the statement said.

“He proposed the possibility of an Intergovernmental Agreement (IGA) between Pakistan and Australia to promote structured and long term cooperation in the mining sector,” it added.

The minister also highlighted the government’s efforts to develop and formalize the gemstones sector, emphasizing its potential for value addition, exports, and employment generation.

The Australian high commissioner said companies from his country were already involved in Pakistan’s Reko Diq copper and gold project while pointing out that additional firms had expressed interest in investing in Pakistan’s mining sector.

He also informed that Australia was open to cooperation in the gemstones sector through technical assistance, training and knowledge-sharing, noting the growing strategic importance of minerals for the global energy transition.