Pakistan’s mining industry is drawing US investment during a global competition for strategic minerals. American firms, seeking to lock up such resources as copper, gold, and lithium, have expressed keen interest in untapped reserves in Pakistan. This comes after the 2025 Pakistan Minerals Investment Forum, during which US diplomat Eric Meyer met PM Shehbaz Sharif in Islamabad. Both governments talked about trade, security, and broadening relations—despite a recent 29% US tariff on Pakistani goods.
Now, with big deposits in turbulent Balochistan and increasing international demand, Pakistan is at the center of a high-stakes energy and trade realignment. But problems such as insurgency and environmental threats still exist.
Reko Diq: A Strategic Asset in US-Pakistan Relations
The Reko Diq mine in Balochistan is becoming a central asset in US-Pakistan relations. With one of the world’s largest untapped copper-gold deposits, it has already attracted more than $2 billion in foreign investment. A joint venture between the Pakistani government, the Balochistan administration, and Barrick Gold, the project will start production by 2028 and may last for 37 years. Now, American firms are taking notice, potentially accelerating development and strengthening economic relations.
For the Americans, the mine provides a substitute for Chinese critical minerals. For Pakistan, it imports global capital and strategic significance. Balochistan security is still an issue, but the Pakistani military has guaranteed complete security. If developed properly, Reko Diq can redefine Pakistan’s economy and enhance the United States’ presence in the region.
Security and Environmental Concerns
Investment in Balochistan’s mining industry poses significant challenges, most of which relate to security as a result of unrest in the region. Pakistan’s Army Chief, Gen. Asim Munir, has promised stern protection to foreign investors by highlighting the military’s resolve to protect their interests. Moreover, a concern for environmental sustainability is critical. Adoption of environmental-friendly modes of mining will be essential so that economic returns do not compromise the environment.
Increasing US corporate interest in Pakistan’s mining industry is an indication of a strategic turnaround in international mineral sourcing, which seeks to stem China’s strategic influence. Although promoting economic dividends, this alliance will have to overcome security issues and ensure sustainable practices in order to gain long-term success.
