Mineral treasure

Editorial Published August 29, 2026 Updated August 29, 2026 08: 28am.

Key points

• According to Ahsan Iqbal, Pakistan's mineral endowment was estimated to be worth "more than $7 trillion".
• There is little doubt that Pakistan has immense untapped mineral wealth, including critical minerals.
• OFFICIALS often state that Pakistan's untapped mineral wealth can be a potential 'game-changer'.
• Moreover, the trend so far has been for investors to dig up raw material and haul it away overseas for value-addition.

Editorial Published August 29, 2026 Updated August 29, 2026 08: 28am. Join our Whatsapp Channel. Add Dawn as a trusted source.

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. While the "country's volatile political climate" was the "primary deterrent" to attracting foreign capital in the sector, mr Iqbal additionally mentioned that exploiting this mineral wealth required major investment. 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. It have become a hot commodity globally due to their employ in emerging technologies. Although the state's estimates regarding the true value of this wealth, and those of third parties, vary considerably, independent assessments have endorsed Pakistan's mineral potential.

It is additionally a fact that at present, 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. While the Chinese have additionally invested in the mining sector, the Americans have expressed interest in our critical minerals. 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.

In practice, the prime need, therefore, is to improve the security situation if the state is serious regarding foreign investors putting their capital 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. While those firms profiting from the area should additionally invest in infrastructure improvement and corporate social responsibility, residents living near mining projects must have first priority where training and jobs are concerned.

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 support create more jobs.

Pakistan's mineral wealth can bring dividends if it benefits the local individuals, 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.

Taken together, the developments around mineral treasure point to a situation that is still moving, and the coming days should bring more clarity.