Highlights
- Pakistan possesses up to $6 trillion in rare earth mineral reserves across multiple geological regions.
- Global powers like the US are exploring potential collaboration to diversify critical mineral supply chains.
- Significant obstacles remain, including outdated mining laws, security risks, and lack of domestic refining capacity.
Pakistan may hold the keys to one of the world’s great underdeveloped mineral troves, but turning potential into reality remains elusive. In a sweeping analysis published by The News International, Col (r) Chaudhry Muhammad Sabahuddin argues that Pakistan’s rare earth reserves could be worth as much as $6 trillion, yet weak governance and persistent instability have kept the country on the sidelines of the global supply chain.
Global Context
Rare earth elements (REEs)—17 minerals essential for EVs, semiconductors, wind turbines, and advanced weaponry—have become the defining resources of the 21st century. China dominates with 70% of global extraction and more than 85% of refining capacity, while the U.S. still depends on Beijing for most imports despite efforts to rebuild domestic capacity.
Against this backdrop, Pakistan’s geology is impressive:
- Chagai (Balochistan): granitic and pegmatite complexes rich in thorium and uranium.
- Khyber Pakhtunkhwa: REE-bearing granites and metamorphics in Dir, Swat, Kohistan.
- Sindh & Balochistan coasts: sands with potential monazite deposits.
- Himalayan/Hindukush belts: monazite, xenotime, bastnäsite formations.
Yet the country lacks refining capacity, suffers from outdated mining laws, and faces persistent security risks—particularly in Balochistan.
Strategic Signals
The article notes that during Chief of Army Staff Asim Munir’s June 2025 visit to Washington, discussions reportedly touched on rare earth cooperation with U.S. companies. While no agreements have been signed, frameworks around joint exploration and refining capacity were considered. If realized, this could diversify U.S. supply away from China and reposition Pakistan as a critical partner.
The Unanswered Questions
- Can Pakistan modernize its mining laws and licensing regime fast enough to attract serious foreign capital?
- How will Islamabad balance Chinese dominance through CPEC against potential American partnerships?
- Without domestic refining and separation facilities, will Pakistan simply repeat past failures like Saindak and Reko Diq—exporting raw ore without building national capacity?
- Can security risks in resource-rich Balochistan be stabilized to enable sustained investment?
Bottom Line
Pakistan’s rare earth wealth represents both a strategic opportunity and a cautionary tale. For U.S. and allied investors, the allure is clear: vast reserves in a geopolitically pivotal state. But unless Islamabad enacts bold reforms and secures its mining regions, Pakistan risks watching yet another generational opportunity slip away.
Source: Col (r) Chaudhry Muhammad Sabahuddin, The News International, “Abundant reserves, limited gains,” September 8, 2025.
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There isn’t a single reserve of rees in Pakistan. Reserve is a very mature term, so far not a single basic study has been conducted on the rees potential in pakistan. Although Pakistan do has potential for rees but it will requires decades to reach first rees production