Finance & Digital Economy | August 2026 | 4 min read
⚡ Quick Takeaways
- Planning Minister Ahsan Iqbal claimed Pakistan’s mineral endowment is worth more than $7 trillion.
- He said mining needs heavy upfront investment, long gestation periods and political stability.
- Pakistan is courting foreign partners, including US firms, through critical-minerals cooperation.
- Iqbal warned that India’s move on the Indus Waters Treaty creates a new security challenge.
- He said Pakistan is pursuing geoeconomics while keeping China as a trusted strategic partner.
Pakistan is trying to turn its mineral potential into an investment story, but the planning minister’s latest claim also underlines a familiar challenge: large resource figures only matter if the country can attract capital, build trust and protect long-term policy continuity.
| $7tr+ Claimed mineral endowment |
$25bn CPEC phase-one investment |
6m acre-ft Planned new water storage |
Mineral Claim Puts Investment Climate in Focus
Planning Minister Ahsan Iqbal has claimed that Pakistan estimates its mineral endowment at more than $7 trillion. He made the remarks in a conversation with Farwa Amin, director for South Asian initiatives at the Asia Society Policy Institute in New York, according to a statement issued by the planning ministry.
The figure is politically and economically significant, but it should be read as a government claim about mineral endowment, not as confirmed export earnings or ready cash. Large mining projects require exploration, feasibility studies, infrastructure, security, financing, environmental approvals and long development cycles before they generate revenue.
Iqbal acknowledged part of that challenge, saying large-scale mining operations need heavy upfront investment and extensive gestation periods. He also said Pakistan’s volatile political climate has been a primary deterrent for international resource developers. That places governance and continuity at the centre of the mineral story.
US Outreach Signals Critical Minerals Strategy
With macroeconomic stability improving, the government is trying to court foreign partners, including US firms. Iqbal referred to mechanisms such as a memorandum of understanding with US Strategic Metals, possible EXIM financing and Pakistan’s participation in critical-minerals ministerial processes.
The outreach reflects a wider global race for critical minerals used in energy systems, batteries, defence technologies and advanced manufacturing. For Pakistan, the opportunity is not only extraction. The real economic gain would depend on transparent contracts, local value addition, secure logistics and the ability to convert raw resources into jobs, exports and industrial supply chains.
| Policy Area | Minister’s Message | Economic Meaning |
| Minerals | Pakistan has more than $7tr in estimated mineral endowment | High potential, but claim needs bankable projects |
| Foreign investment | US firms and financing routes are being pursued | Capital can reduce project delays |
| Water security | New reservoirs will add roughly six million acre-feet | Storage is framed as strategic protection |
| China ties | China remains a trusted partner through CPEC | US outreach is not positioned as a China shift |
| Risk factor | Political volatility deters developers | Policy continuity is essential |
Indus Waters Warning Adds Security Layer
Iqbal also linked economic planning with water security. He said India had unilaterally held the Indus Waters Treaty in abeyance, describing it as the first instance in modern history of water being weaponised. He argued that the treaty had remained untouched through multiple wars, but now posed a serious new security challenge for Pakistan.
According to the minister, India could deny Pakistan water when crops need it and release water when it is not required. He said Pakistan is accelerating construction of new reservoirs to create a strategic buffer, with Diamer-Bhasha and Mohmand dams expected to add roughly six million acre-feet of storage capacity once completed.
| Risk Note: Mineral diplomacy can attract capital, but investors usually need stable policy, security, credible contracts and dispute-resolution confidence. |
US Engagement Will Not Replace China Ties
Iqbal placed geoeconomics at the centre of Pakistan’s foreign policy under the Uraan Pakistan framework and the 5E strategy. He said the relationship with the United States should move beyond the traditional security and geopolitics axis into trade, investment and industrial cooperation.
At the same time, he was clear that engagement with Washington would not come at China’s expense. He described China as a trusted partner that stepped in during Pakistan’s energy crisis through the first phase of CPEC. He said about $25 billion in Chinese investment helped end prolonged power shortages and upgraded highways, fibre-optic networks and Gwadar Port.
The message is aimed at two audiences. To Western investors, Pakistan wants to present itself as open for critical-minerals cooperation. To Beijing, it wants to signal that new US-facing investment diplomacy does not weaken the China partnership. The hard test will be turning this diplomatic positioning into projects that can survive political cycles and deliver measurable economic value.
| Disclaimer: This article is for general information only. The mineral valuation is attributed to the planning minister and should not be treated as independently verified reserves. |
