Pakistan has an estimated mineral wealth of more than $7 trillion, and the government is seeking foreign investment to develop the country’s vast reserves, Federal Minister for Planning Ahsan Iqbal said.
Speaking to the Asia Society Policy Institute in New York, Iqbal said critical minerals are central to Pakistan’s economic strategy as Islamabad seeks to attract long-term investment from the United States and other countries.
He said decades of regional conflict and political instability had discouraged investors from making the long-term commitments required for large mining projects. With macroeconomic conditions improving, Pakistan is now seeking foreign partners to develop its mineral resources.
Iqbal said the government is engaging US companies in the critical minerals sector through initiatives including a memorandum of understanding with US Strategic Metals, potential financing from the US Export-Import Bank and participation in international critical-minerals forums.
He stressed that stronger economic ties with the US would not come at the expense of China. Iqbal described China as a trusted partner and said Pakistan does not view its relationships with major economies as a zero-sum choice.
He said the first phase of the China-Pakistan Economic Corridor (CPEC) brought around $25 billion in investment and helped address Pakistan’s power shortages while improving highways, fibre-optic connectivity and Gwadar Port.
According to Iqbal, CPEC 2.0 is shifting toward business-to-business cooperation, with focus areas including growth, livelihoods, innovation, green energy and regional connectivity.
Mining and minerals, climate-resilient agriculture, industrial joint ventures, technology and human-resource development are among the areas being targeted. He said several billion dollars of joint-venture agreements have already been signed at recent business events.
Iqbal also highlighted artificial intelligence and digital infrastructure as emerging areas for investment. He said Pakistan is developing its national AI ecosystem around data centres, education, data sovereignty and sector-specific applications in areas such as healthcare, industry and governance.
He noted that Pakistan has surplus energy capacity, including renewable and conventional sources, which could support data-centre investment in the short and medium term.
The minister linked the country’s mining, AI and energy ambitions with another major challenge: water security.
Iqbal warned that India’s decision to hold the Indus Waters Treaty in abeyance has created a new security challenge for Pakistan, saying water could potentially be used as an instrument of pressure.
He said Pakistan is responding by accelerating the construction of reservoirs, including the Diamer-Bhasha and Mohmand dams, which together are expected to add roughly six million acre-feet of storage capacity once completed.
Iqbal said Pakistan had gone around four to five decades without developing a major new reservoir and now needs to catch up. The additional storage is intended to improve water security, manage climate-related volatility and reduce vulnerability to disruptions in upstream water flows.
He said Pakistan is also pursuing diplomatic channels to prevent the water dispute from escalating, stressing that South Asia needs greater focus on development, poverty reduction, health, education and regional connectivity.
The minister said Pakistan’s geographic position, young population and growing technology sector provide opportunities to expand IT, mineral development, regional trade and cooperation with major global economies.
He said the government’s broader strategy is to combine economic stabilisation with investment in water infrastructure, critical minerals, technology and connectivity while maintaining economic relationships with both the US and China.
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