In the 21st century, the global economy is increasingly driven by the strategic control and utilization of natural resources, particularly critical minerals and rare earth elements.
BY PROF. ENGR. ZAMIR AHMED AWAN
Key Takeaways:
i) Pakistan possesses substantial untapped mineral reserves, estimated at over $6 trillion, offering significant potential for economic growth.
ii) The country’s strategic location at the crossroads of South Asia, Central Asia, and the Middle East can facilitate regional trade and global supply chains.
iii) By adopting a strategic, transparent, and sustainable approach, Pakistan aims to attract foreign investment and develop its mineral resources for export-led growth.
In the 21st century, the global economy is increasingly driven by the strategic control and utilization of natural resources, particularly critical minerals and rare earth elements. As nations race to secure their mineral futures to power technologies, industries, and green transitions, Pakistan stands at a crossroads of opportunity and responsibility. The country is richly endowed with mineral wealth and possesses the potential to emerge as a significant player in the global mineral economy, provided it adopts a strategic, transparent, and balanced approach.
What is the Mineral Economy?
The mineral economy refers to the system of extraction, processing, trade, and utilization of mineral resources that are essential for industrial production, technological innovation, and national development. Minerals—such as copper, lithium, cobalt, rare earth elements, and others—are foundational to modern infrastructure, electric vehicles, renewable energy technologies, semiconductors, and defense systems.
With the global shift towards clean energy, digitalization, and advanced manufacturing, the demand for critical minerals is skyrocketing. This transformation has redefined mineral resources not merely as commodities but as strategic assets vital for national security and economic competitiveness.
Global Trends in the Mineral Economy
The global mineral economy is witnessing a surge in competition among major powers. The United States, China, the European Union, and others are investing heavily in securing stable and diversified supply chains for critical minerals. The World Bank estimates that the production of minerals such as graphite, lithium, and cobalt could increase by nearly 500% by 2050 to meet the demands of a low-carbon future.
At the same time, there is a growing emphasis on responsible mining, environmental sustainability, ethical sourcing, and regional cooperation. The mineral economy is no longer just about extraction; it’s about geopolitics, sustainability, and technological supremacy.
Pakistan’s mineral economy represents one of the most promising frontiers for national growth, regional integration, and global relevance. By leveraging its vast resources, strategic location, and balanced diplomacy, Pakistan can emerge as a key contributor to the global mineral economy.
Pakistan’s Mineral Wealth: An Untapped Treasure
Pakistan is home to a vast range of mineral resources spread across all its provinces, from the mountains of Balochistan to the plains of Punjab and the rugged terrain of Khyber Pakhtunkhwa and Gilgit-Baltistan. The estimated worth of Pakistan’s mineral resources is over $6 trillion, according to various geological surveys and expert estimates.
Some of the key mineral deposits include:
- Reko Diq Copper-Gold Reserves (Balochistan): One of the world’s largest undeveloped copper and gold mines, with estimated reserves of 5.9 billion tons of ore containing 0.41% copper and 0.22 grams/ton of gold.
- Thar Coal (Sindh): Among the largest lignite coal reserves in the world, with over 175 billion tons of estimated deposits.
- Salt (Punjab): The Khewra Salt Mine is one of the oldest and largest in the world.
- Chromite (Khyber Pakhtunkhwa and Balochistan): Pakistan ranks among the top ten chromite-producing countries globally.
- Gypsum, limestone, and marble across various regions.
- Critically, rare earth elements (REEs) and strategic minerals such as lithium, cobalt, and nickel have been detected in various geological zones, particularly in Balochistan and Gilgit-Baltistan, though detailed mapping and exploration are still required.
The mineral economy refers to the system of extraction, processing, trade, and utilization of mineral resources that are essential for industrial production, technological innovation, and national development.
Potential and Strategic Importance
Pakistan’s mineral wealth provides it with multiple strategic advantages:
- Geopolitical Location: Pakistan sits at the confluence of South Asia, Central Asia, and the Middle East, offering a natural corridor for mineral trade and processing.
- CPEC and Infrastructure Development: Under the China-Pakistan Economic Corridor (CPEC), Pakistan is developing the infrastructure necessary to support mining, transport, and export of minerals.
- Young Workforce and Technical Talent: With targeted training and investment in geological sciences, Pakistan can develop a skilled workforce for its mineral sector.
- Investment Attraction: The recent resolution of disputes such as Reko Diq has paved the way for renewed investor confidence.
Pakistan’s Place in the Global Race
As the US, China, and EU intensify their search for secure and sustainable sources of critical minerals, countries like Pakistan are increasingly in focus. The opportunity for Pakistan lies not in taking sides but in offering itself as a reliable, neutral, and strategic partner to all.
Pakistan can provide raw materials and processing opportunities to both Western and Eastern partners while ensuring environmental compliance, local community development, and economic benefits. Strategic partnerships in mineral exploration and refining can be designed with checks and balances that preserve Pakistan’s autonomy and national interests.
Official Perspective and Policy Direction
The Government of Pakistan has signaled a renewed focus on the mineral sector. The “Mineral Development Framework” emphasizes:
- Regulatory reforms for ease of doing business.
- Public-private partnerships.
- Modern geological surveys and digital mapping.
- Establishment of Special Economic Zones (SEZs) focused on mineral processing.
- International collaborations for technology transfer and training.
- Above all development of skilled workforce
Federal and provincial governments are also actively encouraging foreign direct investment (FDI) in mining under a clear legal and environmental framework.
In his recent statement, the Prime Minister reaffirmed that “Pakistan welcomes all friendly countries to explore investment opportunities in the mineral and mining sectors. We are committed to transparency, sustainability, and mutual benefit.”
A Call for Balanced Foreign Policy
Amid rising geopolitical tensions—particularly between the United States and China—Pakistan must walk a tightrope. It must not become a pawn in the new “Great Game” over minerals. Instead, Pakistan should position itself as a peace-oriented, neutral, and development-driven state that engages all powers equally.
Pakistan’s foreign policy must continue to reflect its founding principles of peace, friendship, and non-alignment. It should deepen its strategic cooperation with China under CPEC, while simultaneously enhancing trade and investment ties with the United States, Europe, and regional countries.
A Path Forward
Pakistan’s mineral economy represents one of the most promising frontiers for national growth, regional integration, and global relevance. By leveraging its vast resources, strategic location, and balanced diplomacy, Pakistan can emerge as a key contributor to the global mineral economy.
However, success will require strong governance, transparency, environmental responsibility, and inclusive development. Local communities must benefit. Environmental concerns must be addressed. And long-term national interests must be safeguarded.
Pakistan does not need to choose sides in global confrontations. Instead, it must choose development, cooperation, and sustainability. As the world races for minerals, Pakistan can be a stabilizing force—a mineral-rich, peace-loving nation, committed to building a prosperous and interconnected future for itself and the world.
Courtesy: Modern Diplomacy
