A senior mining executive has publicly called out excessive taxation and bureaucratic red tape as key barriers to foreign investment in Balochistan, warning that current policies are crippling the province's resource potential. Main Developments Zhang Liangeng (Hopang), chairman of the MCC Huaye Duddar Mining Project, told journalists during a site visit that both federal and provincial governments impose taxes that undermine mining operations. He urged the two administrations to rationalize their taxation policies and remove procedural obstacles to attract foreign investors. The company, despite receiving Export Processing Zone status from the federal government—an incentive meant to ease exports and reduce taxes—still faces a federal tax burden of up to 42 percent. Zhang argued this defeats the purpose of the incentive scheme and discourages new investment. Read also: Pakistan LPG crisis looms as importers warn of supply collapse Background Balochistan, Pakistan's largest province by area, holds significant mineral deposits but has historically struggled to attract sustained foreign capital. The Duddar mining project is one of several ventures where investors have flagged governance and fiscal challenges as persistent obstacles to expansion. Previous reports have documented similar complaints from other industries in the region, including warnings of a supply collapse in the LPG sector and unexpected wheat stock levels, pointing to broader economic inefficiencies. Why It Matters If unresolved, these tax and bureaucratic issues could deter future foreign direct investment in Balochistan's mining sector, limiting job creation and provincial revenue. The disconnect between federal incentive schemes and actual tax burdens erodes trust in Pakistan's investment climate. What's Next Zhang's public appeal raises pressure on both federal and provincial governments to review their taxation policies. No official response has been reported, but the mining sector will be watching for any concrete steps to reduce the 42 percent federal tax rate or streamline procedures.