New Delhi: Pakistan’s push to position itself as a supplier of rare earths and critical minerals to the United States remains only a promise without evidence unless domestic security, political stability and regulatory clarity improve, a new report has said.
The report in Pakistan-based The Friday Times said that despite geological potential including deposits at Reko Diq and reports of rare earth elements in Balochistan and Khyber Pakhtunkhwa, “the state of security, politics and the investment climate is the barrier.”
In recent months, Balochistan has seen a surge in Baloch Liberation Army attacks. Tehreek-e-Taliban Pakistan (TTP) and Islamic State Khorasan Province (ISKP) activity in Khyber Pakhtunkhwa, along with terror attacks in Islamabad, broadens risk perception to transport corridors and workforce safety.
“The Tira Valley displacement linked to counter-TTP operations underscores how militancy shapes the wider environment in which mining must operate,” the report noted.
The escalation in Balochistan has directly affected sentiments of investors who have already spent considerable capital including Chinese investors, the report suggested. Without stabilising existing commitments, attracting additional capital will remain difficult. Reassuring Beijing through transparent policy, improved security for Chinese personnel and timely resolution of energy payment disputes should be Pakistan’s priority now even while courting Washington, it said.
Further internationally verified data on commercially viable rare earth reserves remain limited. “Exploration and certification are still required before large-scale production becomes credible,” it added. The report also flagged provincial politics as another barrier affecting investment inflows as provincial‑federal jurisdiction remains under dispute. Mining requires regulatory clarity over decades, not months, it reminded.
The political polarisation between the current civil–military leadership and the Pakistan Tehreek-e-Insaf (PTI)-led opposition create uncertainty over policy continuity. Investors will fear that agreements signed under one dispensation may face renegotiation under another, the report argued.
The report also warned that if security conditions deteriorate, Saudi Arabia’s reported interest in acquiring a stake in Reko Diq will not see any follow up.
