The global scramble for rare earth elements (REEs) is intensifying, and Pakistan, sitting on a goldmine of untapped resources, is conspicuously absent from the fray. With an estimated $50 trillion worth of mineral deposits, primarily in Balochistan, Khyber Pakhtunkhwa, and Gilgit-Baltistan, Pakistan could be a game-changer in the critical minerals supply chain. Yet, it remains on the sidelines, unable to capitalize on this wealth due to technological, infrastructural, and political barriers. This inaction could have profound implications for Pakistan’s economic trajectory and geopolitical standing.
The world’s reliance on REEs is only set to increase. From electric vehicles to wind turbines and advanced defense systems, these minerals are indispensable. China’s near-monopoly on REE extraction and processing has raised alarms in Washington, Brussels, and Tokyo, driving major economies to seek alternative sources. Countries like Australia, Canada, and even Greenland have recognized the urgency and made significant investments. Pakistan, however, remains stagnant, neither attracting foreign investment nor developing local expertise.
Pakistan’s failure to develop an effective extraction and processing ecosystem is multifaceted. A lack of technological expertise, inadequate regulatory frameworks, insufficient foreign investment, and political instability have all played a role. Unlike Australia, which has formed strategic alliances with the USA and the EU, or Canada, which has integrated REE refining into its industrial framework, Pakistan has remained passive. Even smaller nations, such as Greenland, have managed to attract global attention and investment due to their untapped REE potential, while Pakistan has yet to establish a coherent policy regarding the exploration and extraction of these invaluable resources.
To truly capitalize on its REE wealth, Pakistan must take a multi-dimensional approach. First and foremost, the country needs to modernize its mining policies, ensuring that they are transparent, investor-friendly, and conducive to foreign direct investment. Pakistan cannot afford to remain a passive player while the rest of the world aggressively secures its future in the REE industry. It must forge strategic partnerships with technologically advanced nations, such as the U.S., Germany, and Japan, which are actively looking to diversify their REE supply chains away from China. Joint ventures with global mining corporations could provide Pakistan with the necessary technical expertise and financial backing to develop a robust REE extraction and processing industry.
The government must also prioritize research and development, investing in local talent and institutions to build a skilled workforce capable of handling sophisticated mineral refining processes. The country must seize this moment— investing in REE extraction, refining, and technology-driven industries— to transform its mineral wealth into economic power. Pakistan cannot afford to be a bystander in this global race; it must emerge as a contender, carving its place in the high-stakes REE industry and securing its future as a technological and economic powerhouse.
Another critical aspect is the environmental sustainability of REE extraction. Countries such as Sweden and Canada have pioneered green mining techniques that reduce the environmental impact of rare earth mining, which is often associated with hazardous waste and ecological degradation. If Pakistan is to develop this industry responsibly, it must learn from these models, implementing sustainable mining and processing methods that prevent long-term environmental damage while ensuring maximum economic benefit.
Moreover, REEs can serve as a powerful bargaining tool in Pakistan’s geopolitical strategy. As the global REE supply chain undergoes shifts, Pakistan can leverage its resources to attract major international stakeholders, securing trade agreements that not only enhance its economic stability but also strengthen its global standing. The U.S., which has been actively seeking non-Chinese sources for critical minerals, could view Pakistan as a valuable ally in counterbalancing China’s REE dominance. Similarly, the European Union, which has classified REEs as essential for its Green Deal transition, would be an eager partner if Pakistan presents itself as a viable supplier. However, this requires Pakistan to move beyond mere resource extraction and invest in processing capabilities, ensuring that it is not just another raw material exporter but an active player in the value-added supply chain.
Pakistan’s economic and strategic future is at stake, and its leadership must recognize that REEs are not just buried treasures but a lifeline to economic progress and industrial transformation. The world is already in a silent war over these resources, and those who act decisively will shape the technological and economic landscape of the future. If Pakistan continues to delay, other nations will fill the vacuum, leaving it behind in yet another industrial revolution. The country must seize this moment— investing in REE extraction, refining, and technology-driven industries— to transform its mineral wealth into economic power. Pakistan cannot afford to be a bystander in this global race; it must emerge as a contender, carving its place in the high-stakes REE industry and securing its future as a technological and economic powerhouse.