Mineral treasure

OFFICIALS often state that Pakistan’s untapped mineral wealth can be a potential ‘game-changer’. The planning minister’s recent comment while speaking to a think tank in New York, offers more of the same optimism.

According to Ahsan Iqbal, Pakistan’s mineral endowment was estimated to be worth “more than $7 trillion”. It is not known how the minister arrived at that eye-watering figure. Mr Iqbal also mentioned that exploiting this mineral wealth required major investment, while the “country’s volatile political climate” was the “primary deterrent” to attracting foreign capital in the sector. In other words, this massive bonanza cannot be tapped just yet.

There is little doubt that Pakistan has immense untapped mineral wealth, including critical minerals, which have become a hot commodity globally due to their use in emerging technologies. Independent assessments have endorsed Pakistan’s mineral potential, although the state’s estimates about the true value of this wealth, and those of third parties, vary considerably.

It is also a fact that currently, the mining sector’s contribution to total GDP is miniscule. Pakistan’s lack of funds, expertise and technology are the main impediments standing in the way of exploiting this potential. The Americans have expressed interest in our critical minerals, while the Chinese have also invested in the mining sector. But the biggest obstacle in attracting foreign capital and expertise is the poor security situation in the areas where Pakistan’s mineral wealth is concentrated: Balochistan and KP.

The prime need, therefore, is to improve the security situation if the state is serious about foreign investors putting their money into the mining sector. A securitised approach alone will not yield the desired results. As mining activity largely takes place in areas with high poverty, the investment must bring socioeconomic improvements to the lives of the local population. Residents living near mining projects must have first priority where training and jobs are concerned, while those firms profiting from the area should also invest in infrastructure improvement and corporate social responsibility.

Moreover, the trend so far has been for investors to dig up raw material and haul it away overseas for value-addition. To create a lasting economic impact, along with extraction, downstream industries are required which are capable of processing and adding value to the raw material. This will help create more jobs.

Pakistan’s mineral wealth can bring dividends if it benefits the local people, and helps diversify the economy. Therefore, the state must concentrate on security, community development as well as policy continuity to attract foreign investment to the mining sector. Otherwise, Pakistan’s mineral treasure worth trillions will end up becoming a ‘resource curse’.

Published in Dawn, August 29th, 2026