Pakistan stands at a pivotal moment in its economic journey, where tapping into its vast natural resources oil, minerals, and rare earth elements could redefine the country’s future.
While much attention has focused on oil partnerships, the real opportunity may lie beneath the surface, in the country’s immense mineral wealth spread across Balochistan, Khyber Pakhtunkhwa, Sindh, and Punjab.
The country’s confirmed oil reserves, about 23.8 million barrels, fall short of its growing energy demands. Some estimates suggest that untapped reserves could reach as high as nine billion barrels, but even then, only a fraction of these are being explored.
Today, Pakistan meets barely 10 to 15 percent of its oil needs domestically, importing the rest at a heavy cost. With roughly 299 oil and gas wells most of them in Sindh and a few scattered across other provinces exploration remains slow, hampered by outdated technology, limited foreign investment, and security challenges.
Recent discoveries in Lakki Marwat and North Waziristan have revived hope, but progress has been sluggish. The lessons from the Reko Diq episode still echo: Pakistan must ensure its agreements are transparent, equitable, and truly beneficial for both the people and the state.
The Reko Diq case, which led to a six-billion-dollar penalty following contractual disputes, remains a stark reminder of how weak legal and financial frameworks can backfire. Its eventual settlement in 2022, restoring Barrick Gold’s role, highlighted how careful and well-negotiated partnerships are essential to protect national interests and ensure local communities benefit.
While oil exploration remains vital, the real turning point for Pakistan’s economy could come from rare earth elements. These minerals are indispensable to the modern world used in electric vehicles, renewable energy systems, smart phones, and defense technologies. Pakistan’s deposits, particularly in Chaghi, Makran Coast, and Gilgit-Baltistan, hold enormous potential. Chaghi alone contains more than a dozen identified types of rare earth elements, while the coastal belt along Makran remains largely unexplored.
A significant step forward came when Pakistan delivered its first batch of enriched rare earths to US Strategic Metals under a five-hundred-million-dollar partnership. This move places Pakistan on the global rare earth map as part of an emerging supply chain that could balance the dominance of China, which currently controls nearly 80 percent of global production.
Pakistan can also learn from Uganda’s success in developing its mining sector. Uganda’s aerial mineral survey, conducted by a Spanish firm at a cost of twenty million euros, mapped over two thousand areas and identified hundreds of mineral-rich zones containing gold, copper, cobalt, and rare earth elements. That survey, aligned with Uganda’s national plan for industrialization and job creation, attracted foreign investors by de-risking exploration in underdeveloped regions.
Pakistan could replicate such a strategy, especially in its resource-rich but infrastructure-poor regions like Balochistan and Khyber Pakhtunkhwa.
Unlocking Pakistan’s mineral potential will require a coordinated approach that connects governments, investors, and industries.
Strategic partnerships with countries such as Turkey and Australia could help bring in advanced exploration and processing technologies.
Clear investment frameworks, fair tax incentives, and transparent policies would make Pakistan more attractive to responsible investors. Morocco’s transformation of its phosphate industry offers a strong example of how consistent policy, scientific research, and efficient management can turn natural wealth into national growth.
Equally important is building domestic value chains so that Pakistan processes more of its minerals at home instead of exporting them in raw form.
Establishing specialized industrial zones for mineral processing across the provinces would not only attract investment but also create jobs, enhance exports, and strengthen local industries. Alongside this, research hubs and technology centers can help develop smarter mining methods and ensure environmental responsibility.
From gold in Attock and copper in Chiniot to salt in Khewra, chromite in Muslim Bagh, and coal in Thar, every province has a role to play in shaping Pakistan’s mineral-based economy.
Punjab can serve as an industrial anchor, while Balochistan and KP can drive the supply of raw materials that feed a larger national strategy. Together, they represent a powerful network that can propel Pakistan toward self-sufficiency and long-term stability.
If managed wisely, this shift could reduce the country’s dependence on imported fuel, diversify its exports, and create thousands of skilled jobs. By moving from raw extraction to value addition, Pakistan can become a meaningful contributor to the global rare earth and mineral supply chain, a sector that powers the industries of the future.
The time for hesitation has passed. With sound policies, transparency, and a shared national commitment, Pakistan can finally turn its natural wealth into a source of enduring prosperity. The world is looking for alternatives in the rare earth market, and Pakistan, if it acts decisively, can be the wildcard that reshapes the global supply chain and strengthens its own economic foundations.
Copyright Business Recorder, 2025
The writer is an expert on institutional development, finance and governance
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