Pakistan sits on $7tr mineral trove, claims planning minister

Islamabad: Planning Minister Ahsan Iqbal has stated that Pakistan's mineral resources are estimated to be worth over $7 trillion, according to a statement released by the planning ministry. Speaking to Farwa Amin, director for South Asian initiatives at the Asia Society Policy Institute, Iqbal highlighted that large-scale mining operations necessitate significant initial investments and lengthy gestation periods.

He noted that Pakistan's volatile political climate serves as a significant deterrent for international resource developers.

Iqbal emphasized that with enhanced macroeconomic stability, the government is actively seeking foreign partners, including US firms, through mechanisms such as a memorandum of understanding with US Strategic Metals, potential Export-Import Bank financing, and participation in critical-minerals ministerial processes. He pointed out that India's unilateral suspension of the Indus Waters Treaty represents the first instance in modern history of water being weaponized, posing a serious new security challenge for Pakistan. This 70-year-old treaty has remained untouched even during multiple wars between the two nations.

Iqbal warned that India could now deny Pakistan water when needed for crops or release it when not required, transforming a shared resource into a potential instrument of pressure. To counter this threat, Pakistan is accelerating the construction of new reservoirs to create a strategic water buffer. The Diamer-Bhasha and Mohmand dams, once completed, will add approximately six million acre-feet of storage capacity, helping to stabilize water supply against climate-related variability and reduce vulnerability to upstream manipulation, Iqbal explained.

He also stressed that Islamabad is pursuing diplomatic channels to prevent the dispute from escalating into conflict.

Geoeconomics forms the core of Pakistan's foreign policy under the "Uraan Pakistan" framework and the 5E strategy, according to Iqbal. He argued that the relationship with the United States, in particular, must transcend the traditional security-geopolitics axis. Iqbal clarified that engagement with the US would not occur at the expense of China, describing China as a "trusted partner" which provided crucial support during Pakistan's energy crisis by delivering about $25 billion in investment through the first phase of the CPEC.

This investment ended prolonged power shortages and upgraded highways, fiber-optic networks, and the Gwadar Port.