Pakistan finds gold worth Rs 80,000 crore in Indus River: India connection explained

Pakistan has found vast reserves of gold in the Indus River, estimated to be worth around Rs 80,000 crore.

This came during a government-commissioned survey in the Attock district of the Punjab province, various media reports indicated.

The find has offered a potential economic lifeline to the cash-strapped country, and was spearheaded by the state-owned National Engineering Services Pakistan (NESPAK) as well as the Mines and Minerals Department, Punjab.

Zargham Eshaq Khan, Managing Director of NESPAK, confirmed that the govt-owned consultancy has inked the deal for 'Consultancy Services for Preparing Bidding Documents and Transaction Advisory Services for Nine (09) Placer Gold Blocks along River Indus in District Attock,' media reports indicated, paving the way for commercial gold mining in the region.

Geologists reportedly suggest that the Indus River carries these gold deposits from the Himalayas in India and they accumulate in Pakistan as placer gold -- nuggets that are flat or completely round due to the extensive downstream travel.

The Indus Valley region, which has historically been rich in natural resources, has long been associated with gold and other precious metals.

The area has already seen an influx of local mining contractors over speculations of gold deposits there, forcing the Punjab provincial government to intervene and deny authorisation for extraction without permits.

Pakistan's economy is struggling with a recent report highlighting the country's tax shortfall widened to PKR 606 billion (Rs 18,945 crore) in the first eight months of this fiscal year, piling up pressure on authorities for violating commitments made with the International Monetary Fund.

The fund provided a $7 billion loan but imposed strict conditions, including on tax collection.

The Express Tribune reported that the Federal Board of Revenue (FBR) sustained a colossal shortfall of PKR 606 billion against the July-February target of PKR 7.95 trillion because it provisionally pooled PKR 7.342 trillion during this fiscal year's July-February period.

The report said it showed impressive growth of around 28 per cent, but was not enough to hit the IMF-dictated target of PKR 7.95 trillion. This resulted in a shortfall of PKR 606 billion against the target, putting the authorities under pressure.

The government again missed the monthly target of PKR 983 billion in February by a margin of PKR 138 billion, collecting only PKR 845 billion in the month. This is the seventh consecutive month of missed targets.

(With PTI inputs)