A recent case involving a large oil multinational’s operations in Nigeria offers a timely reminder. Internal company documents reportedly show senior executives discussing environmental risks and the likelihood of further pollution while production continued. Decades later, communities are still seeking remediation, while questions of responsibility remain unresolved.

Yet the real lesson is bigger than one company or one country. Nigeria and Norway both discovered significant oil reserves. Both attracted international investment. Both generated enormous wealth from hydrocarbons. But the outcomes were very different.

This lesson is particularly relevant for Pakistan as it seeks to unlock the potential of projects such as Reko Diq and the vast resources of Thar.

When we talk about institutions, we are not talking about buildings or government departments. We are talking about clear laws, transparent contracts, competent regulators, environmental oversight, accountable courts, and mechanisms that align the interests of investors, governments, and local communities.

Pakistan’s experience with Reko Diq in the past demonstrated how costly it can be when these foundations are not robust enough from the outset. Disputes that begin as contractual or regulatory issues can eventually evolve into years of litigation, uncertainty, and enormous economic costs.

This time around, Pakistan has already taken steps to improve coordination and investor confidence through mechanisms such as the SIFC. These efforts may help unlock major investments.

However, the true measure of success will not be how quickly projects are approved, but whether the underlying governance framework remains transparent, predictable, environmentally responsible, and trusted by investors and communities alike over the decades that follow.

The lesson from Nigeria is not that natural resources are a curse. It is that resources amplify the quality of institutions. Strong institutions turn resources into prosperity. Weak institutions turn resources into disputes, environmental damage, and missed opportunities.

Pakistan’s challenge is not attracting investment into its mineral wealth. The challenge is building the institutions that can manage that wealth successfully for the next fifty years.