ISLAMABAD:
Pakistan appears to be playing its trump card in the high-stakes game of mineral exploration, looking to strike deals with global powers eager to secure access to its vast untapped reserves.
The administration of former US President Donald Trump had shown strong interest in two areas digital currency and strategic minerals and Pakistan has sought to position itself as a potential partner. Washington, however, is not alone in eyeing Pakistan’s resource wealth. China, already operating the Saindak copper and gold project for years, remains a key contender, though little is publicly known about the project’s actual output.
In recent months, Pakistan hosted an international minerals conference, inviting global investors to explore opportunities in its mining sector. Both the US and China are pressing hard, but so far Washington has been more aggressive in its push to secure deals. Officials in Islamabad estimate the country’s mineral wealth to be worth a staggering $8 trillion.
The American playbook in such negotiations is not without precedent. Washington earlier signed a deal with Ukraine that tied military and economic assistance to a substantial share in Kyiv’s mineral sector, including rare earths. Critics fear that Pakistan could face similar demands, with the US potentially seeking a large stake in copper and gold mining projects.
At the heart of Pakistan’s mineral ambitions lies the multibillion-dollar Reko Diq project in Balochistan’s Chagai district. While US interest in the project appears lukewarm, Saudi Arabia has expressed strong willingness to invest. Meanwhile, China has expanded its footprint after being awarded another mining area along the Reko Diq belt, building on its existing Saindak operations.
Analysts argue that Islamabad must carefully balance offers from Washington, Beijing and Riyadh if it is to maximize the benefits of its resources. Recently, Pakistan received a $5 billion financing proposal for Reko Diq, far exceeding the estimated $3 billion investment required. Funding commitments have also come from global institutions such as the Asian Development Bank, Islamic Development Bank, International Finance Corporation, and US Exim Bank, with additional interest shown by Germany and Denmark.
But experts caution that Pakistan should not confine itself to Reko Diq alone. With abundant deposits of copper, gold, coal, iron ore, chromite and precious stones, the mining sector holds the potential to spark a broader economic turnaround. At present, the industry contributes just 3.2% to GDP, while exports make up a mere 0.1% of the world’s mineral trade.
Despite this modest share, Pakistan’s geological landscape is rich. The country has an outcrop area of 600,000 square kilometres, with 92 identified minerals, of which 52 are commercially extracted. Annual production stands at nearly 69 million metric tons, spread across 5,000 mines and 50,000 small and medium enterprises, employing around 300,000 people.
Among its most notable treasures are the world’s second-largest salt mines, the fifth-largest copper and gold deposits, as well as sizeable coal reserves. The country also boasts significant bauxite and gypsum deposits, along with precious stones like rubies, topaz and emeralds that could fetch strong demand in global markets.
For Pakistan, the challenge lies in securing the capital, technology and expertise required to fully exploit this wealth. With major powers now circling, the time may be ripe for Islamabad to negotiate from a position of strength. If handled wisely, these resources could reshape the country’s economic future.
