Pakistan’s Mineral Paradox: the $8 Trillion Opportunity That Demands a New Playbook
In this March 18, 2017, photo shows a hill near the gold and copper mine site, in Reko Diq district in southwestern Pakistan’s Baluchistan province.
What stands between Pakistan’s underground wealth and its economic future? The country holds the world’s fifth-largest copper and gold reserves — yet the mineral sector contributes just 3.2% to GDP.Pakistan possesses some of the world’s most significant mineral deposits, including the fifth-largest copper and gold reserves, as well as high quantities of critical minerals in high global demand. Yet the sector currently contributes around 3.2% to GDP, while exports account for just 0.1% of the global total — a gap that highlights both challenges and opportunities.»With vast untapped wealth, including the world’s fifth-largest copper and gold reserves — such as the Reko Diq Project — and emerging critical minerals, this sector is estimated to be worth up to $8 trillion,» says Dr. Shahid Rashid, former unit head at Engro Corporation and geopolitical observer.To realize this potential, several key measures are essential, according to Dr. Rashid:• The Special Investment Facilitation Council (SIFC) acts as a ‘single window’ to remove bureaucratic hurdles and attract Foreign Direct Investment (FDI) into the sector• Shifting from raw ore exports to in-country refining and manufacturing in order to capture greater value• Expanding partnerships, including CPEC’s growing role in copper, gold, and rare earth elements• Improving policy predictability, reducing bureaucracy, facilitating currency repatriation, and ensuring stability in regions like BalochistanGlobal demand for critical minerals is rising, presenting resource-rich countries with both opportunities and challenges. For Pakistan, success will depend on regulatory frameworks, investment climate, and long-term strategic planning — precisely the areas in which, as Dr. Rashid emphasizes, targeted reforms can make the difference.
