Mining Investment in Balochistan is being undermined by excessive taxation and bureaucratic hurdles, according to the chairman of the MCC Huaye Duddar Mining Project, who has urged the federal and provincial governments to reform their policies to attract foreign investors.

Speaking to journalists during a visit to the Duddar mining project in Quetta, Chairman Zhang Liangeng (Hopang) said high taxes and administrative barriers continue to create major challenges for the company’s operations and production.

He called on both governments to rationalise taxation policies and remove unnecessary procedural obstacles to enable foreign companies to operate efficiently and encourage greater investment in Balochistan’s mining sector.

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Zhang said his company remains burdened by taxes imposed by both the federal and provincial governments despite efforts to expand production.

He noted that the federal government had granted the company Export Processing Zone status to facilitate exports and reduce its tax burden. However, he said the company still faces an effective federal tax burden of up to 42 per cent, limiting the benefits of the incentive programme.

He argued that the current taxation structure defeats the purpose of offering investment incentives and weakens Pakistan’s ability to attract long-term foreign investment in the mining industry.

The chairman urged authorities to review existing tax policies and streamline regulatory procedures to improve the business environment and unlock the mining sector’s economic potential in Balochistan.