Pakistan’s Mineral Resources and the New Great Game in South Asia

In the rugged mountains and vast plains of Pakistan lie untapped reserves of minerals that could change the country’s future. From gold and copper to rare earth elements, these resources have the potential to make Pakistan a key player in the global economy. But they also place the country at the center of a geopolitical struggle—one that echoes the 19th-century Great Game, when Britain and Russia competed for influence in Central and South Asia. Today, a new version of that power struggle is unfolding, with China, the United States, India, and other global players eyeing Pakistan’s mineral wealth.

Pakistan is home to an estimated 600 million metric tons of copper reserves, mostly concentrated in Balochistan. The Reko Diq mine, one of the world’s largest undeveloped copper and gold projects, holds nearly 12.3 million tons of copper and 21 million ounces of gold. Such vast resources could transform Pakistan’s economy, creating jobs, boosting exports, and attracting foreign investment. However, minerals have historically been both a blessing and a curse for resource-rich nations. The question is: will Pakistan benefit from its wealth, or will it become a battleground for competing global interests?

China has taken a lead in investing in Pakistan’s mineral sector, particularly through the China-Pakistan Economic Corridor (CPEC). As part of its Belt and Road Initiative (BRI), China has poured billions into Pakistan’s infrastructure, including roads, ports, and energy projects. With its growing global demand for raw materials, China sees Pakistan as a crucial partner. The Saindak Copper-Gold Project in Balochistan, operated by a Chinese company since the 1990s, is an example of Beijing’s long-term commitment to Pakistan’s mineral extraction. However, critics argue that Chinese firms extract resources but leave little benefit for local communities, raising concerns about economic dependency.

On the other side of the global chessboard, the United States is also interested in South Asia’s resources, particularly in countering China’s influence. Washington has been increasing ties with India, which has its own ambitions in the region. India has been expanding its mineral exploration efforts and sees Pakistan’s resource wealth as a potential threat to its strategic interests. The two countries have a history of tensions, and access to critical minerals—especially those used in technology and defense—adds another layer to their rivalry.

Pakistan’s mineral wealth is not just about economic opportunity; it is also linked to security challenges. Balochistan, the province richest in minerals, is also Pakistan’s most volatile region, with ongoing insurgencies and separatist movements. Groups operating in the area often target mining projects, seeing them as symbols of external exploitation. This instability discourages foreign investment and makes resource extraction difficult. Both China and Pakistan have increased security around key projects, but attacks continue, adding another obstacle to fully utilizing these resources.

Meanwhile, global demand for critical minerals, especially rare earth elements (REEs), is skyrocketing. These minerals are essential for manufacturing smartphones, electric vehicles, and military technology. China currently controls nearly 60% of the world’s rare earth supply, but the U.S. and other Western countries are looking for alternative sources. If Pakistan can explore and develop its rare earth deposits, it could become a major player in this strategic sector. However, doing so requires significant investment in exploration, technology, and policy reforms.

Another challenge is the lack of infrastructure and modern mining techniques. Pakistan’s mining sector contributes only 2.5% to GDP, far below its potential. Comparatively, mining contributes over 8% to Chile’s GDP, a country with a similar copper-rich profile. Without proper investment in refining and processing, Pakistan will continue exporting raw minerals rather than high-value finished products. This means other nations will reap the true economic benefits, leaving Pakistan dependent on external forces.

The competition over resources in South Asia reflects a broader shift in global politics. The U.S.-China rivalry, India’s regional ambitions, and Pakistan’s internal challenges all intersect in this new Great Game. The outcome will depend on how Pakistan manages its resources—whether it can strike a balance between foreign investment and national interests, whether it can develop sustainable policies, and whether it can maintain security in its mineral-rich regions.

For Pakistan to turn its mineral wealth into a national advantage rather than a geopolitical liability, strategic planning is crucial. Transparency in contracts, fair revenue-sharing with local communities, and sustainable mining practices must be prioritized. Otherwise, the country risks repeating the mistakes of other resource-rich nations that have fallen into economic instability and foreign exploitation.

As the world’s appetite for minerals grows, so does the competition for control over them. Pakistan stands at a crossroads—either it can become a key player in the global resource market or a pawn in the larger geopolitical struggle. How it navigates this complex game will shape its economic and political future in the years to come.