In April 2025, the United States expressed significant interest in investing in Pakistan’s mineral sector, marking a pivotal moment in the economic and strategic relations between the two countries. This development was highlighted during the Pakistan Minerals Investment Forum held in Islamabad, where U.S. State Department official Eric Meyer met with Prime Minister Shehbaz Sharif to discuss potential collaborations.
Pakistan’s mineral wealth is substantial, with the Reko Diq region in Balochistan housing one of the world’s largest undeveloped copper and gold deposits. The Reko Diq project, a joint venture between Barrick Gold and the governments of Pakistan and Balochistan, is projected to generate approximately $70 billion in free cash flow and $90 billion in operating cash flow over its lifespan. Phase one of the project, expected to commence production in 2028, has an estimated cost of $5.6 billion, with throughput increasing from 40 to 45 million tons per year.
The U.S. interest in Pakistan’s mineral sector aligns with its broader strategy to secure critical minerals essential for advanced technologies and to diversify supply chains away from dominant players like China. This interest also coincides with discussions on trade relations, including the recent imposition of a 29% tariff on Pakistani exports by the U.S., which has prompted Pakistan to seek avenues to balance the trade relationship.
To attract foreign investment, Pakistan has emphasized the need for local processing of extracted minerals, aiming to add value within the country and reduce reliance on raw material exports. The government has offered incentives and is working to align regulatory frameworks to facilitate investment. Security assurances have also been provided, with the military pledging to protect foreign investments, particularly in regions like Balochistan, which have experienced unrest.
The potential economic impact of these developments is significant. Currently, the mineral sector contributes approximately 3.2% to Pakistan’s GDP. With increased investment and development, this contribution is expected to rise, providing much-needed revenue and employment opportunities.
The following table summarizes key aspects of the Reko Diq project:
| Aspect | Details | Source |
| Project Name | Reko Diq | Barrick Gold Corporation |
| Location | Balochistan, Pakistan | Barrick Gold Corporation |
| Partners | Barrick Gold, Government of Pakistan, Government of Balochistan | Barrick Gold Corporation |
| Estimated Free Cash Flow | $70 billion | Reuters |
| Estimated Operating Cash Flow | $90 billion | Reuters |
| Phase One Cost | $5.6 billion | Reuters |
| Expected Production Start | 2028 | Reuters |
| Annual Throughput (Phase One) | 45 million tons | Reuters |
| Mine Life | 37 years (potential extension to 80 years) | Reuters |
The collaboration between Pakistan and U.S. companies in the mineral sector holds promise for economic growth and strengthened bilateral relations. By focusing on value addition, regulatory alignment, and security, Pakistan aims to transform its mineral wealth into a catalyst for sustainable development.
