Pakistan sits atop one of the world’s most promising but least developed mineral regions, yet for decades its mining sector has remained on the margins of the national economy.
As global demand accelerates for critical minerals needed for energy transition, digitalisation, and industrial growth, Pakistan’s vast but underutilised mineral wealth is drawing renewed international interest.
Whether the country can translate this geological advantage into sustainable economic gains will depend not on the size of its reserves alone, but on the depth of reforms, investment confidence, and strategic choices it makes in the years ahead.
Stretching across approximately 600,000 square kilometres of mineralised terrain, the country hosts 92 identified minerals, of which 52 are commercially extracted, supporting thousands of mines and related industries.
Despite this wealth, Pakistan’s mining sector has historically contributed only modestly to the national economy — a disparity that is now attracting global attention as the country seeks to reframe its mineral potential within the context of global demand and investment.
Pakistan’s mining sector produces an estimated 68.52 million metric tonnes of minerals annually, but its contribution to the country’s gross domestic product (GDP) is currently around 3.2 percent, and its share of the total global mineral export market is only 0.1 percent.
The sector also provides direct employment to around 300,000 workers and supports more than 50,000 SMEs engaged in extraction and allied services.
Experts estimate that the country’s mining sector’s annual revenues could rise significantly — potentially from around $2 billion current revenue to over $6 billion-$8 billion annually by 2030 — if Pakistan successfully capitalises on its mineral wealth through exploration, regulatory reform, infrastructure development, and foreign investment.
The most prominent reserve in Pakistan’s portfolio is the Reko Diq copper-gold deposit in Balochistan’s Chagai district. Operated jointly by Barrick Gold and provincial and federal governments, Reko Diq is one of the largest undeveloped copper and gold deposits worldwide, with estimated reserves of approximately 5.9 billion tonnes of ore.
Reko Diq’s first phase is expected to begin production in 2028, offering an initial output of copper and gold that could contribute significantly to export earnings and economic growth.
International financing support for the project — including a $410 million financing package from the Asian Development Bank (ADB) and additional backing from the International Finance Corporation — underscores its strategic importance amid rising global demand for critical resources.
Critical minerals and global supply chains
The world’s energy transition, digitalisation, and industrial automation are driving exponential demand for critical minerals such as copper, gold, antimony, rare earth elements, and others — many of which are abundant in Pakistan.
Copper, for instance, is integral to renewable energy infrastructure, electric vehicles, and power grids, while rare earths are essential for advanced electronics and clean-energy technologies.
In 2025, Pakistan signed a $500 million agreement with US-based Strategic Metals to develop a poly-metallic refinery for processing critical minerals, reflecting global investor interest in building local value chains and reducing dependence on dominant suppliers. This deal signals Pakistan’s potential role in diversifying global supply chains.
Beyond copper and gold, Pakistan is also rich in gemstones such as emerald, ruby, topaz, and aquamarine — reserves estimated to be worth hundreds of billions of dollars. Yet exports remain low, in part due to regulatory fragmentation and limited certification and processing infrastructure.
Recent policy initiatives aim to remedy these challenges by establishing internationally accredited laboratories, certification regimes, and value addition centres.
Policy reforms and investment environment
One foundational challenge in Pakistan’s mining landscape has been policy fragmentation. Historically, mineral rights, licensing procedures and regulatory frameworks varied across provinces, creating uncertainty for investors.
To address this, the federal government has been developing the National Minerals Harmonisation Framework 2025, intended to unify policy, streamline regulations, and provide clear incentives for both domestic and foreign investment.
All provinces, Azad Jammu & Kashmir, and Gilgit-Baltistan will adopt the framework to improve legal transparency and encourage long-term commitments. Several countries’ interest in acquiring a stake in Reko Diq also points to growing confidence in Pakistan’s mineral policy direction.
Infrastructure development under the China-Pakistan Economic Corridor (CPEC) further supports mineral logistics by enhancing connectivity between resource-rich regions and export hubs such as Gwadar Port and Port Qasim, thereby boosting export potential.
International engagement and strategic partnerships
Pakistan’s mining diplomacy is gaining momentum. High-level engagements with China, Saudi Arabia, Japan, the US, and other countries are focusing on cooperation across the mining value chain, investment support, and technology partnerships.
These discussions reflect a strategic drive to integrate Pakistan’s mineral sector into broader global investment flows.
Large multilateral and bilateral commitments are emerging as global powers seek alternative sources of critical minerals beyond traditional suppliers. Such interest positions Pakistan favorably amid an evolving geopolitical landscape where supply chain security increasingly influences investment decisions.
Challenges and the road ahead
Despite promising developments, Pakistan’s mining sector continues to face structural challenges that must be addressed for it to realise its full potential.
A major challenge is the limited level of value addition and processing capacity, which results in the export of raw or semi-processed minerals rather than higher-value finished products.
Environmental management and adherence to international sustainability standards also require strengthening, particularly as global investors increasingly prioritise responsible and climate-conscious mining practices.
Beyond key economic corridors, infrastructure gaps in transport, power, and logistics continue to raise costs and limit access to mineral-rich but remote regions.
In addition, the sector needs greater technology transfer and sustained investment in workforce training to improve productivity, safety, and operational efficiency.
Overcoming these challenges will require coordinated and sustained action by federal and provincial governments, the private secto,r and international partners to build a competitive, responsible, and future-ready mining industry.
Forum for transformation
The Pakistan Minerals Investment Forum 2026 (PMIF26), scheduled for 8-9 April 2026 in Islamabad, aims to highlight the country’s mineral potential, regulatory reforms, and investment opportunities.
The forum serves as a platform where policymakers, global investors, technical experts, and industry leaders can engage on policy, technology, financing, and sustainable development in mining.
While PMIF26 will be an important milestone in Pakistan’s advocacy efforts, it is only one part of a broader and sustained strategy aimed at unlocking the transformative potential of the country’s mineral wealth.
The inaugural Pakistan Minerals Investment Forum (PMIF25), held in April 2025, marked a significant milestone for the country’s mining sector.
The event attracted over 5,000 delegates from more than 50 countries, including investors, policymakers, and industry leaders, and featured 18 panel discussions along with high-level networking sessions.
During the forum, 16 memoranda of understanding (MoUs) and agreements were signed, covering exploration, development, and technology partnerships, underscoring Pakistan’s emerging credibility as a promising destination for global mining investment.
Strategic opportunity for investment
Pakistan’s minerals sector is approaching a pivotal moment. Vast reserves, improving policy coherence, growing international interest, and a surge in global demand for critical minerals are converging to create a rare strategic opportunity.
While structural and regulatory challenges persist, sustained reform, credible partnerships, and a decisive shift toward value addition could transform the sector into a long-term engine of economic growth.
More than a dormant resource base, Pakistan’s mineral wealth represents a strategic lever in an evolving global supply-chain landscape. The decisions taken now — on governance, sustainability, infrastructure, and skills — will determine whether the country remains a marginal supplier of raw materials or emerges as a competitive, future-ready mining hub aligned with the demands of the 21st-century global economy.
