Pakistan sent its inaugural rare earth minerals shipment to the United States in October 2025, signifying a potential economic partnership. Despite a $500 million deal and plans for mining expansion by 2028, Pakistan encounters significant hurdles. Structural, political, environmental, and security issues raise doubts about the country’s ability to translate its mineral wealth into sustainable economic success, according to the Geopolitical Mirror report.
The shipment aimed to showcase Pakistan’s capability to assist the US in diversifying its mineral supply chains away from China. However, while a roadmap was outlined to boost mining operations by 2028, Pakistan’s mineral sector faces challenges that contradict the optimistic narrative. The country asserts possessing mineral reserves valued at nearly $6 trillion, but lacks international certifications like JORC or NI 43-101, essential for investor trust and transparency.
Despite decades of pressure to exploit its resources, Pakistan’s mining sector contributes only 3.2% to its GDP and a mere 0.1% to global mineral exports. Chinese investments in Pakistan, totaling around $65 billion through the China-Pakistan Economic Corridor, have not significantly developed the rare earth and mining industries. The Saindak copper mine, a Chinese-backed project, has drawn criticism for lacking transparency, local benefits, and causing environmental harm.
Pakistan’s outdated mining technology, reliance on raw mineral exports, and legal complexities further hinder its mineral sector growth. The country’s inability to refine minerals domestically means continued dependence on China for processing, potentially exposing the US to supply risks. Analysts suggest that the US-Pakistan mineral partnership may be more symbolic than practical due to these challenges.
