By Qudsia Bano

Intensifying global competition for critical minerals is opening a strategic opportunity for Pakistan to move beyond raw mineral extraction and develop domestic processing and refining capacity, industry experts say, as countries worldwide race to secure diversified supply chains for resources vital to clean energy technologies, electric vehicles, semiconductors and advanced manufacturing.

The importance of critical minerals has grown significantly over the past year. In May 2026, the Quad countries announced plans to mobilise up to $20 billion to strengthen critical minerals supply chains, underscoring the growing geopolitical and economic significance of mineral processing, refining and value-added production.

Against this backdrop, Pakistan is positioning itself as a potential destination for investment in critical minerals, including copper, gold, rare earth elements and other strategic resources.

The government has made mineral development a key pillar of its investment agenda through the Pakistan Minerals Investment Forum (PMIF), which is promoted as a platform to attract international investors and technology partners for exploration, processing and value-added mining activities.

Official PMIF documents indicate that Pakistan aims to leverage its vast mineral resources through international partnerships, institutional reforms and investment-friendly policies while aligning its strategy with the global energy transition. The forum has highlighted opportunities in mineral processing, infrastructure development and sustainable mining practices.

Recent developments have further boosted interest in Pakistan’s minerals sector. As global discussions on critical minerals gain momentum, Pakistan has actively sought partnerships with both Western and Asian investors while showcasing the export potential of its mineral resources. Policymakers are increasingly focusing on developing downstream industries capable of generating substantially greater economic value than the export of unprocessed ores.

Industry experts note that countries participating in the global critical minerals race are no longer concentrating solely on mining. Greater emphasis is now being placed on refining, smelting, mineral separation technologies and battery-material processing, where the majority of value addition takes place before minerals enter global manufacturing supply chains.

Muhammad Hakeem Khan, Manager of Mining and Metals Advisory at National Engineering Services Pakistan (NESPAK), said Pakistan's long-term success would depend on establishing processing and refining facilities alongside mining projects.

“Many mineral-rich countries have historically exported raw materials and imported finished products at significantly higher costs. Pakistan has an opportunity to avoid that model by integrating processing and refining facilities into future mining investments,” he said.

He noted that global manufacturers increasingly prefer suppliers capable of delivering processed materials rather than raw ores.

“Developing local processing capacity will not only increase export earnings but also create skilled employment opportunities and facilitate technology transfer into the domestic economy,” he added.

Abdul Wahaeed, Senior Manager of Business Development at Pakistan Mineral Development Corporation (PMDC), said the ongoing diversification of global supply chains presents a favourable environment for Pakistan’s mineral sector.

“International investors are actively searching for new sources of critical minerals as governments seek to reduce supply-chain concentration. Pakistan’s geological potential provides an opportunity to attract investment not only in extraction but also in beneficiation and processing industries,” he said.

He added that establishing processing facilities close to mining sites could significantly improve project economics while supporting industrial development in resource-rich regions.

“Special economic zones and industrial clusters linked to mineral projects can help Pakistan build an integrated value chain over the coming decade,” Wahaeed said.

Analysts believe that infrastructure development, regulatory certainty, technical skills and access to affordable energy will be critical if Pakistan is to secure a larger share of the global critical minerals value chain.

They also emphasise the need for strong environmental safeguards and sustainable mining standards, which are becoming increasingly important requirements for international investors, manufacturers and buyers.

With global demand for critical minerals expected to rise steadily and governments investing heavily in supply-chain resilience, Pakistan’s mineral sector has a unique opportunity to evolve from a supplier of raw resources into a participant in higher-value industrial activities.

Experts believe the challenge now lies in translating the country’s considerable geological potential into competitive processing and refining capacity that can serve increasingly sophisticated global markets while generating long-term economic benefits at home.

Credit: INP-WealthPk