The Pink Salt Project in Pakistan is under a lease dispute and has raised concerns about what will happen in the coming future.
A dispute over the lease of the Warcha Rock Salt Mine has raised questions about the proposed $200 million US investment in Pakistan’s pink salt industry, according to sources.
The investment agreement, signed between the Pakistan Mineral Development Corporation (PMDC) and a US company, is intended to boost exports of Pakistani pink salt to international markets.
However, uncertainty has emerged after a disagreement between the Punjab Mines and Minerals Department and PMDC over the mining lease for the Warcha Salt Mine.
According to sources, the provincial department cancelled PMDC’s mining lease for the mine before auctioning the 291-acre site to a private company, Sapphire Chemicals.
PMDC has argued that the Punjab government’s decision is inconsistent with commitments made under the Special Investment Facilitation Council (SIFC) framework, which aims to attract and facilitate foreign investment.
Court documents show that PMDC has challenged the cancellation in the Lahore High Court, maintaining that its mining lease remains valid until 2032. The corporation has asked the court to suspend the provincial government’s decision.
Separately, a civil court in Qaidabad has ordered all parties to maintain the status quo over the disputed property until further proceedings.
The lease dispute has raised concerns over its potential impact on foreign investment in Pakistan’s mining sector, particularly as the country seeks to attract international investors under the SIFC initiative.
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