Pakistan’s critical minerals push gains momentum amid Reko Diq developments

Pakistan’s ambitions in the global critical minerals market are gradually taking shape, with renewed focus on large-scale mining projects and growing international financial support, even as geopolitical attention shifts elsewhere.

A key driver of this emerging sector is the Reko Diq Mine, one of the world’s largest undeveloped copper and gold deposits. The project is increasingly seen as central to Pakistan’s long-term economic transformation, particularly as global demand rises for minerals essential to clean energy, electrification, and advanced manufacturing.

The Asian Development Bank has pledged continued support for Pakistan’s mining sector, including an $800 million financing package aimed at strengthening copper supply chains and attracting private investment. Officials have also indicated that additional funding of up to $1 billion could be mobilised to support related infrastructure and development.

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According to industry reports, multinational mining firm Barrick Mining has extended its review of Reko Diq, citing security and geopolitical risks across the region. The review covers project costs, timelines, and investment strategies, and could delay key development milestones by up to a year.

Despite these challenges, local industry leaders remain optimistic. They view Reko Diq as a catalyst for broader exploration activity in regions such as Balochistan and Khyber Pakhtunkhwa, where untapped mineral reserves are believed to exist. Companies including state-linked and private-sector firms are increasingly participating in exploration efforts, reflecting rising investor confidence.

Experts argue that Pakistan’s real opportunity lies not only in extraction but also in developing downstream industries such as refining and smelting. Converting raw copper into finished products like wiring, automotive parts, and industrial components could significantly increase export value and reduce reliance on imports.

While progress is slower than some early projections, stakeholders maintain that mining development will follow a steady trajectory. If successfully executed, Reko Diq could anchor Pakistan’s integration into global mineral supply chains and reshape its industrial base over the coming decades.