KARACHI:
Pakistan’s mineral sector has become a growing focal point for the United States, especially following the recent global event, the Pakistan Minerals Investment Forum (PMIF25), held in Islamabad.
The forum, attended by key stakeholders from both the public and private sectors, highlighted the vast opportunities presented by Pakistan’s untapped mineral resources. With significant reserves of copper, gold, rare earth minerals, and more, Pakistan is positioning itself as a promising investment destination for global players – particularly the United States.
The forum underscored the increasing interest in Pakistan’s mineral sector, driven by the global demand for critical resources used in high-tech industries. Notably, rare earth minerals are in high demand for electronics, renewable energy technologies, and electric vehicles. The US has recognised Pakistan’s potential as a key supplier of these minerals, which are vital to its industrial ecosystem.
As the global race to secure stable supply chains intensifies, Pakistan’s vast reserves offer a unique opportunity for the US to diversify its mineral sources and reduce dependency on other countries, especially China.
Beyond rare minerals, Pakistan’s deposits of copper and gold are equally valuable. These resources are essential for industries ranging from construction to electronics and are expected to remain in high demand.
The US’s growing interest in these minerals is rooted in its need to secure access to materials critical for long-term industrial resilience. With rising global consumption, US companies are keen to invest in Pakistan’s mining industry, which offers long-term economic potential.
At the forum, it became clear that US engagement in Pakistan’s mining sector is not limited to resource extraction. There is a strong emphasis on technology transfer and capacity building. American companies bring with them advanced mining technologies and sustainable practices that could modernise Pakistan’s mining operations. By introducing efficient and environmentally friendly methods, the US can help Pakistan enhance its mineral output while reducing the environmental footprint.
Sustainability was a key theme at the forum, especially as concerns about climate change and environmental degradation grow. With their expertise in clean technologies, US firms are in a position to help Pakistan transition to more sustainable mining practices. These could include minimising waste, lowering emissions, and implementing advanced recovery techniques that reduce ecological damage while maximising economic returns.
However, while the strategic and economic advantages of US involvement are apparent, it is crucial not to overlook the role of traditional local miners. Pakistan’s mining industry has long depended on artisanal miners who have been instrumental in resource extraction. Without their inclusion in broader economic opportunities, these miners risk displacement as large-scale, tech-driven operations take over.
The government must ensure that any foreign partnership includes provisions for local miner involvement. While some foreign firms may resist such conditions, including local workers can help foster skills development, create jobs, and preserve the social fabric of mining communities. This inclusion is also vital to ensuring broader economic benefits across the country. Training and empowering traditional miners could create thousands of jobs, strengthen local economies, and reduce poverty. Moreover, community engagement is essential to securing buy-in for large-scale mining projects, mitigating the risk of social unrest, and promoting shared prosperity.
Additionally, if the US is seeking a sovereign-level agreement for mineral access, it indicates a desire for a direct, exclusive arrangement with the Pakistani government. From Islamabad’s perspective, this places the country in a delicate geopolitical position. Saudi Arabia, for instance, has already shown serious investment interest. Given the historical and strategic relationship between our two countries, any side-lining of Riyadh could send an unintended diplomatic signal. Saudi Arabia has consistently provided financial support, and alienating such a longstanding partner would be short-sighted.
Then there’s China – Pakistan’s all-weather friend, an important investor and partner through the China-Pakistan Economic Corridor. Any perceived shift towards Washington, especially in mineral-rich areas where Chinese interests are already active, could cause discomfort in Beijing. The overlap of strategic and commercial interests requires a nuanced approach.
For Pakistan, the smart play is to keep all doors open. Investment is essential, but not at the cost of alienating traditional allies or undermining long-term strategic relationships. Balance is everything.
The forum also called attention to the need for regulatory reform and infrastructure development. While Pakistan’s mineral wealth is undeniable, a lack of modern infrastructure, energy supply, and clear regulations continues to deter investors. These challenges must be addressed to unlock the mining sector’s full potential. The US, with its expertise in infrastructure development, could play a meaningful role in helping Pakistan modernise its regulatory framework and physical logistics.
Security remains another key concern, especially across mineral-rich provinces like Balochistan. For any investment to succeed, the government must guarantee safety, equitable resource sharing, and transparency. A stable environment is crucial to attracting and retaining both foreign and local investors. Finally, a word of caution: the US has a complicated legacy in mineral-rich regions.
History offers examples from Africa to Afghanistan, where foreign interest in natural resources led to conflict, instability, and weakened state control. The term “conflict minerals” did not emerge in a vacuum. For Pakistan, this is a lesson worth remembering.
Granting any single power too much control or exclusive access risks compromising national sovereignty and increasing foreign interference. Pakistan must craft a mineral policy that promotes strategic autonomy, not dependency. As global demand for minerals like rare earths, copper, and gold continues to surge, Pakistan’s untapped resources represent a major economic opportunity.
If managed wisely – through inclusive partnerships, strategic diplomacy, and sustainable development – this sector could power a new phase of national growth. For the US, securing access to these materials strengthens its supply chain.
THE WRITER IS A STAFF CORRESPONDENT
