Pakistan is a state rich in valuable natural resources, ranging from minerals to arable land. Among those, one of the most widely talked about mineral that received much attention in the last few days is pink salt, famously known as pink Himalayan salt. This salt is of pink tint. It gets its colour from calcium, magnesium, potassium, copper, and iron.
Apart from food products, the pink Himalayan salt is used in some forms of bath salts, salt lamps, salt bricks, salt tiles and medicines. Spending time in man-made salt caves is trendy among people who are in quest of improving their respiratory and skin problems.
Located in Pakistan Khewra Salt Mine range, 1,136 kilometres from Himalayas, pink salt most likely does not come from the Himalayan Mountains as the given name might suggest. Himalayan pink salt is an 800 million-year-old, non-renewable resource, a discovery of Alexander’s horse in 320 BCE. The main ground level tunnel developed in 1872 during the British rule. Even though these reserves are in millions of tonnes, once depleted they’ll be gone for good.
Some important particulars and statistics of interest, firstly, pink salt in raw form is 98 per cent NaCl. The remaining 2 per cent contains minerals like calcium, magnesium, sulphate, potassium, iron, zinc, chromium and copper.
Secondly, the production of salt from Khewra Salt Mine was 389,134 tonnes, as reported in 2018. The total estimated reserves are between 82 million tonnes and 600 million tonnes. At this rate, the mine is expected to last for another 350 years approximately.
Thirdly, as per the Ministry of Commerce statistics, since 2014, there is an increase of 34 per cent compound annual growth rate in salt exports from Pakistan. Between 2014 and 2018, exports reached $51.6 million per annum from $15.8 million.
Fourthly, the average price of a kilogram of salt is around between Rs 572 and Rs 1,525 in the international market.
Fifthly, despite being Asia’s sole salt producer and world’s second largest, Pakistan stands at 20th position among the exporters, with India and China on the top.
Sixthly, France, Israel and India are, reportedly, selling Pakistani pink salt in the world market. In 2016, Pakistan exported 625 metric tonnes of pink salt at the rate of Rs 2.98 per kilogram to India. India exported, with its own branding and packaging, 15.09 metric tonnes at an average price of Rs 125 per kilogram to the UAE, the US, Spain, Somalia, and Korea.
Seventhly, although there is confusion on the account if Pakistan is bound to export salt to India according to the 1949 trade agreement between India and Pakistan, according to Article IX of the agreement, annual rectification is required from both countries.
Pakistan can earn a lot with its salt as global salt consumption is expected to grow by 1.9 per cent through 2020, worth $14 billion.
Between 2014 and 2018, exports reached $51.6 million per annum from $15.8 million
The question arises: why is Pakistan not taking advantage of its pink Himalayan salt. With export of just raw salt it is impossible to gain anything. With processing and packaging, our exporters are earning on our salt many times more times than we are. There is a dire need to attract investors, and for investments to be made on the final goods form of production of this resource.
There is no salt export policy in the Global Indication Law, and Intellectual Property Organisation in order to end illegal trade. The IPO should be followed in order to formulate strict conventions to discourage illegal branding of Pakistani products by other countries.
Before 2007, the Pakistan Minerals Development Cooperation was the regulator of salt exports. It was responsible for preserving and regulating prices and exports of salt. Later, the control was handed over to the private sector.
Private exporters complain that they have to rely on the e-form method for payment, an export form issued by government, rather than the up-to-date methods being followed worldwide. As a result, international buyers are dissatisfied, and find it more comfortable to trade with other countries.
The government needs to take measures to help the salt sector that has considerable potential. Pakistan has always been lackadaisical in taking advantage of its resources, whether human, capital or natural. The salt sector has great potential for generating revenue.
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