Pakistan bristles with mountains of minerals containing lithium, copper, rare earth elements (REEs), and others critical for electric vehicles, semiconductors, aerospace, and defence industries. However, due to a lack of proper financing and infrastructure, these resources remain underexploited.
A rising focus by Pakistan's government on developing infrastructure and the mining sector has made the country open to Foreign Direct Investment (FDI). This presents an opportunity for the US to act before other countries take advantage of these valuable resources. When it comes to the country's underdeveloped mining industry, Pakistan's mining industry holds an array of essential minerals, yet limited development has positioned it as one of the last major markets for extensive investment. These resources include lithium, which is crucial for electric vehicle batteries and renewable energy sources like solar panels and wind turbines; rare earth elements (REEs), essential for advanced electronics, defence, and telecommunications; copper, widely used in electric grids, wiring, and infrastructure; and gold, a key asset for trade and economic development.
In addition, government reforms and investment incentives have made Pakistan an attractive destination for mining ventures. To facilitate foreign investment, the government has implemented tax deductions for companies engaged in mining, introduced lenient laws to promote mineral exploration, and established bilateral treaties to encourage international investments.
Moreover, potential US market benefits are significant. The deep-sea port of Gwadar provides unfettered export opportunities, while the China-Pakistan Economic Corridor (CPEC) can be expanded to accommodate logistical needs for mining operations. As a mineral supplier, Pakistan is strategically positioned due to its proximity to major markets such as China, India, and the Middle East.
By investing in Pakistan, the US can secure access to critical minerals essential for American industries while reducing dependence on China as a supplier. Additionally, Pakistan's strategic location offers the US an opportunity to establish greater control over global mineral trade routes. With skyrocketing global demand for minerals, modern technologies will be required to meet supply needs. Given its rich deposits, Pakistan has the potential to emerge as a mineral powerhouse and serve as a valuable strategic partner for the US, strengthening alternative supply chains worldwide.
In the past, US resource planning has largely overlooked Pakistan. However, with ongoing talks involving Ukraine and rising extraction costs in Australia and Canada, the urgency to explore alternative sources has grown. Given Pakistan's vast untouched reserves, cost-effective extraction, and investment-friendly policies, the country is well-positioned as a long-term partner for resource security. From both a strategic and economic perspective, the world is experiencing an increasing demand for rare earth minerals due to shifts toward clean energy, technological innovations, and military modernisation. The US must act swiftly to establish Pakistan as a key mineral partner before China, Russia, or other global competitors solidify their presence in the region. Expanding business operations in Pakistan presents an attractive investment opportunity, ensuring a cost-effective and stable supply chain of minerals.
According to The Economist, US President Donald Trump's push for critical minerals has taken him from Greenland to Ukraine. He is not alone in seeking more metal resources, which are essential for everything from expanded electrification to the growth of artificial intelligence (AI) data centres and stronger power grids. According to BCG, a consultancy firm, approximately a fifth of the minerals projected to be required by 2035 have yet to be discovered. While billions of dollars are being invested in new mineral exploration, uncertainty remains about where these critical resources will be sourced.
Dr Sultan Ahmed Khoso, a PhD holder in Minerals Processing Engineering and an assistant professor in the Department of Mining Engineering at Mehran University of Engineering and Technology (MUET) Jamshoro, said that Pakistan is blessed with vast mineral resources. He noted that while large-scale mining of coal, gold, and copper is ongoing in various parts of Sindh and Balochistan, many other valuable mineralssuch as chromite, iron, zirconium, lead, zinc, cobalt, titanium, manganese, lithium, and other rare earth elements (REEs)remain largely untapped.
Khoso further stated that Pakistan is a hub for mineral investments, but developing these untapped resources requires expertise, advanced technology, and infrastructure.
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