Pakistan’s mineral wealth valued at up to $8 trillion could transform the economy. Projects like Reko Diq and Thar coal may boost exports, energy security and GDP growth.
Pakistan stands at a critical economic crossroads. Beneath its mountains, deserts and plateaus lies one of the most diverse mineral endowments in the region — a geological treasure that could significantly reshape the country’s economic trajectory.
Pakistan’s mineral base includes 92 identified minerals spread across nearly 600,000 square kilometres, with 52 minerals already commercially extracted. These include copper, gold, coal, chromite, iron ore, limestone, marble, gypsum, gemstones and increasingly strategic minerals such as lithium and rare earth elements.
According to government estimates revised in March 2025, the in-ground value of Pakistan’s mineral resources could range between $6 trillion and $8 trillion.
Even conservative assessments based on internationally recognized reserve reporting standards estimate recoverable mineral wealth between $100 billion and $300 billion, representing decades of economic opportunity.
Mining Sector Still Under performing in Pakistan’s Economy
Despite the country’s rich geological potential, the mining sector currently plays a modest role in the national economy.
The sector contributes approximately 2–3 percent to Pakistan’s GDP and generates only $1–2 billion in annual exports, accounting for less than 0.1 percent of global mineral trade.
Pakistan produced 51.4 million metric tons of minerals in 2023, but most of the output is exported in raw form with limited value addition.
In FY2025, the mining sector contracted by 3.4 percent, reflecting broader industrial pressures including high energy costs, infrastructure limitations and regulatory challenges.
However, two flagship projects — Thar coal and Reko Diq — demonstrate the transformative potential of Pakistan’s mineral sector.
Thar Coalfield Strengthening Pakistan’s Energy Security
The Thar coalfield in Sindh contains approximately 175 billion tonnes of lignite reserves, making it one of the largest coal deposits in the world.
These reserves have the potential to generate up to 100,000 megawatts of electricity, significantly reducing Pakistan’s dependence on imported fuels.
Since 2019, Thar Block II has produced more than 27,000 gigawatt-hours (GWh) of electricity, saving Pakistan approximately $1.3 billion in fuel imports.
Thar coal now contributes roughly 10 percent of the country’s electricity supply.
Domestic coal production increased 28 percent in FY2024, while coal imports declined by 39 percent, easing pressure on Pakistan’s foreign exchange reserves.
For Pakistan, the Thar coal project represents more than a power source — it represents greater energy sovereignty and economic resilience.
Reko Diq: One of the World’s Largest Copper-Gold Deposits
The Reko Diq project in Balochistan is widely considered one of the world’s largest undeveloped copper-gold deposits.
The project contains 7.3 million tonnes of copper and 13 million ounces of gold, with an estimated mine life of more than 37 years.
Backed by $7–10 billion in investment, the project is expected to begin production by late 2028.
Once operational, Reko Diq could generate up to $2 billion annually in export revenues and boost Pakistan’s GDP by up to 2 percent, making it one of the most economically significant mining projects in the country’s history.
Pakistan Aims to Expand Mineral Exports
Through initiatives under the Special Investment Facilitation Council (SIFC) and partnerships with international investors, Pakistan aims to increase mineral exports to $6–8 billion annually within this decade.
Long-term projections suggest the mining sector could contribute 8–10 percent of GDP over the next two decades if systematic development continues.
Global demand for copper, lithium, cobalt and rare earth elements, driven by clean energy transitions and electric vehicle technologies, further strengthens Pakistan’s strategic position in future supply chains.
Mining Sector Could Add Billions to Pakistan’s Economy
If developed effectively, Pakistan’s mineral sector could add $5–7 billion annually to GDP over the next decade.
The sector could also:
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Create tens of thousands of skilled and semi-skilled jobs
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Strengthen foreign exchange reserves
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Diversify exports beyond textiles
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Reduce dependence on remittances and energy imports
This growth could help Pakistan move toward sustained 6 percent annual economic growth, a key national economic target.
Institutional Reforms and Investment Driving the Sector
Pakistan is also implementing structural reforms to improve the mining sector.
Key initiatives include:
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Modern geological mapping programs
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Improved mineral reserve certification
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Infrastructure expansion through public-private partnerships
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Transparent regulatory frameworks
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Greater investor confidence and international partnerships
These reforms aim to align Pakistan’s mining industry with global standards for responsible resource development.
Mineral Sector Could Transform Pakistan’s Economic Future
Pakistan’s mineral wealth represents more than natural resources — it represents a pathway toward economic stability and long-term growth.
Projects like Thar coal and Reko Diq demonstrate how strategic investment and institutional reforms can convert geological potential into tangible economic gains.
With sustained political commitment, improved governance, and responsible resource management, Pakistan’s mineral sector could emerge as a cornerstone of economic resilience and export growth.
The question is no longer whether Pakistan has the resources — the real question is how quickly the country can unlock their full potential.
