CHEMONICS
The USAID Small and Medium Enterprise Activity in Pakistan focused on the KP Minerals Governance Options and Recommendations Paper, a deliverable under the Policy and Legal Consultancy in Minerals Sector contract.
2021 · 53 pages

Abstract
The paper reviews key findings from international best practices applicable in the context of Khyber Pakhtunkhwa (KP) alongside options and recommendations for addressing challenges in KP's mining sector. Institutional arrangements and authorities are critical to the mining sector, with global trends indicating a shift towards more transparent and accountable governance structures. The KP Mines and Minerals Department plays a key role in regulating the sector, but challenges persist in terms of surface rights, regulation of investments, technical quality, geodata management, and mining-related development and benefits. Surface rights are a major issue in KP, with many communities lacking clear ownership and control over their land. Global trends suggest that secure and equitable surface rights are essential for sustainable mining development. The paper recommends that the KP government establish a clear framework for surface rights, including provisions for community engagement and benefit-sharing. Regulation of investments is another critical area, with global trends indicating a shift towards more transparent and accountable regulatory frameworks. The paper recommends that the KP government establish a clear and transparent regulatory framework for investments in the mining sector, including provisions for environmental and social impact assessments. Technical quality is also a major issue in KP, with many mining operations lacking adequate technical expertise and infrastructure. Global trends suggest that investing in technical capacity-building and infrastructure development is essential for improving the quality of mining operations. The paper recommends that the KP government invest in technical capacity-building and infrastructure development, including the establishment of a mining technical assistance program. Geodata management is critical for effective mining governance, with global trends indicating a shift towards more integrated and coordinated geodata management systems. The paper recommends that the KP government establish a clear framework for geodata management, including provisions for data sharing and coordination among stakeholders. Mining-related development and benefits are also critical areas of focus, with global trends indicating a shift towards more inclusive and equitable development models. The paper recommends that the KP government establish a clear framework for mining-related development and benefits, including provisions for community engagement and benefit-sharing. The paper concludes that addressing the challenges in KP's mining sector will require a comprehensive and coordinated approach that takes into account the needs and concerns of all stakeholders. The recommendations outlined in the paper are designed to support the development of a more sustainable and equitable mining sector in KP, and to contribute to the achievement of the KP government's development goals. The paper includes several annexes, including a summary of the Extractive Industries Transparency Initiative (EITI), the International Council on Mining and Metals (ICMM) principles, and the Voluntary Principles on Security and Human Rights. These annexes provide additional information and context for the recommendations outlined in the paper. Overall, the KP Minerals Governance Options and Recommendations Paper provides a comprehensive analysis of the challenges facing the mining sector in KP and outlines a range of recommendations for addressing these challenges. The paper is designed to support the development of a more sustainable and equitable mining sector in KP, and to contribute to the achievement of the KP government's development goals.
Classification
USAID DEC