Washington, Oct 31 — Pakistan’s renewed mineral diplomacy with the United States once again exposes persistent gaps between ambitious economic promises and actual delivery, a report has stated.
It noted that decades of Chinese investment, ambitious infrastructure projects and repeated claims of immense untapped mineral wealth have done little to transform the country’s mining sector into a major economic contributor.
Gwadar district in Pakistan’s Balochistan province continues to struggle to fulfil its commercial potential, while the multibillion-dollar Reko Diq project faces renewed delays amid security concerns, according to a report in US-based Middle East Media Research Institute (MEMRI).
“Pakistan's vast mineral resources are emerging as a new pillar of its relationship with the United States. From Balochistan's copper and gold deposits to the chromite, gemstones and other minerals of Khyber Pakhtunkhwa, these resources offer considerable economic potential. Yet their development raises a fundamental question: who controls Pakistan's mineral wealth, and who benefits from its extraction? At the center of this question is Pakistan's military establishment, whose growing commercial influence increasingly overlaps with economic policymaking and foreign investment,” the report detailed.
“Washington's interest in securing alternative critical mineral supplies is creating new opportunities for Pakistan, but it could also strengthen institutions that operate with limited civilian oversight. This convergence has become particularly consequential under Field Marshal Asim Munir, whose consolidation of military authority, together with the shrinking of civic space and the increasing centralization of economic decision-making, is reshaping the political environment in which Pakistan's natural resources are being offered to foreign investors,” it added.
According to the report, Pakistan’s growing engagement with the United States adds a new geopolitical dimension to Islamabad’s longstanding economic relationship with China.
While Beijing has channelled significant investments into infrastructure, energy and mining ventures, security threats and repeated delays have raised questions about the commercial viability of several initiatives.
The report identified Pakistan’s deteriorating security situation as a key challenge to its emerging mineral investment plans.
Despite growing military control and a security-centric governance approach, it said, militant violence continues to disrupt areas containing some of the country’s richest mineral reserves.
Citing the Pakistan Institute for Conflict and Security Studies (PICSS), the report stated that Pakistan witnessed at least 1,066 militant attacks in 2025, marking an increase of around 17 per cent from the 908 incidents recorded in 2024. The figure was the highest annual total since 2014.
The upward trend persisted in 2026, with PICSS monthly data recording 316 militant attacks in the first quarter. March alone saw 146 incidents, around 76 per cent higher than the 83 attacks recorded in February, the MEMRI report highlighted.
“Mining projects depend upon secure transport corridors, predictable access to extraction sites, protection of technical personnel and substantial long-term capital commitments. Persistent insecurity raises operational costs, complicates financing and can delay the construction of mines, processing facilities and related infrastructure,” it mentioned.