The fate of nations has often hinged on the discovery and control of vital resources— oil dictated the global economy in the 20th century, and rare earth elements (REEs) are now shaping the 21st. These 17 critical minerals, though largely unknown to the common observer, are the backbone of modern technology and innovation. From smartphones, electric vehicles, and wind turbines to advanced missile guidance systems and space exploration technology, REEs are indispensable to the global supply chain. The increasing demand for these minerals has fueled intense competition among world powers, with China dominating the industry, while the USA, the European Union, and other technologically advanced nations scramble to secure alternative sources.
Pakistan, despite possessing vast untapped reserves of REEs, remains absent from this high-stakes global race. With an estimated $50 trillion worth of mineral deposits, concentrated primarily in Balochistan, Khyber Pakhtunkhwa, and Gilgit-Baltistan, the country holds immense potential to become a key player in the critical minerals supply chain. Yet, its inability to capitalize on these resources has left it lagging in an industry that is shaping the geopolitical and economic future of nations. If Pakistan can overcome technological and infrastructural barriers, it has the opportunity not only to reshape its economic trajectory but also to establish strategic partnerships that strengthen its trade ties with major global players. However, if it fails to act decisively, the opportunity to harness this multi-trillion-dollar resource will slip through its fingers, leaving the nation yet again reliant on conventional exports while others reap the benefits of its untapped wealth.
The global demand for REEs is driven by the rapid expansion of renewable energy, high-tech manufacturing, and defense industries. Electric vehicle production alone, which relies heavily on elements like neodymium, dysprosium, and terbium for high-performance batteries and motors, has surged exponentially, particularly in China, the USA, and the EU. Similarly, wind turbines require rare earth magnets, and semiconductors— the foundation of all modern electronics— depend on these minerals. China’s near-monopoly on REE extraction and processing, accounting for nearly 85 percent of global supply, has raised alarms in Washington, Brussels, and Tokyo. The fear of supply chain disruptions, particularly amid growing tensions between China and the West, has forced major economies to seek alternative sources. Countries like Australia, Canada, and even Greenland have recognized the urgency of REE independence and have made significant investments in mining, refining, and processing facilities.
Pakistan, however, remains on the periphery of this geopolitical and economic transformation. Despite the enormous reserves of REEs hidden beneath its soil, the country has failed to develop an effective extraction and processing ecosystem. There are several reasons for this: a lack of technological expertise, inadequate regulatory frameworks, insufficient foreign investment, and political instability that deters global mining giants from entering Pakistan’s market. Unlike Australia, which has aggressively positioned itself as a leading supplier by forming strategic alliances with the USA and the EU, or Canada, which has integrated REE refining into its industrial framework, Pakistan has remained stagnant, neither attracting foreign investment nor developing local expertise. Even smaller nations, such as Greenland, have managed to attract global attention and investment due to their untapped REE potential, while Pakistan has yet to even establish a coherent policy regarding the exploration and extraction of these invaluable resources.
To truly capitalize on its REE wealth, Pakistan must take a multi-dimensional approach. First and foremost, the country needs to modernize its mining policies, ensuring that they are transparent, investor-friendly, and conducive to foreign direct investment. Pakistan cannot afford to remain a passive player while the rest of the world aggressively secures its future in the REE industry. It must forge strategic partnerships with technologically advanced nations, such as the U.S., Germany, and Japan, which are actively looking to diversify their REE supply chains away from China. Joint ventures with global mining corporations could provide Pakistan with the necessary technical expertise and financial backing to develop a robust REE extraction and processing industry. The government must also prioritize research and development, investing in local talent and institutions to build a skilled workforce capable of handling sophisticated mineral refining processes.
The country must seize this moment— investing in REE extraction, refining, and technology-driven industries— to transform its mineral wealth into economic power. Pakistan cannot afford to be a bystander in this global race; it must emerge as a contender, carving its place in the high-stakes REE industry and securing its future as a technological and economic powerhouse.
Another critical aspect is the environmental sustainability of REE extraction. Countries such as Sweden and Canada have pioneered green mining techniques that reduce the environmental impact of rare earth mining, which is often associated with hazardous waste and ecological degradation. If Pakistan is to develop this industry responsibly, it must learn from these models, implementing sustainable mining and processing methods that prevent long-term environmental damage while ensuring maximum economic benefit.
Moreover, REEs can serve as a powerful bargaining tool in Pakistan’s geopolitical strategy. As the global REE supply chain undergoes shifts, Pakistan can leverage its resources to attract major international stakeholders, securing trade agreements that not only enhance its economic stability but also strengthen its global standing. The U.S., which has been actively seeking non-Chinese sources for critical minerals, could view Pakistan as a valuable ally in counterbalancing China’s REE dominance. Similarly, the European Union, which has classified REEs as essential for its Green Deal transition, would be an eager partner if Pakistan presents itself as a viable supplier. However, this requires Pakistan to move beyond mere resource extraction and invest in processing capabilities, ensuring that it is not just another raw material exporter but an active player in the value-added supply chain.
Pakistan’s economic and strategic future is at stake, and its leadership must recognize that REEs are not just buried treasures but a lifeline to economic progress and industrial transformation. The world is already in a silent war over these resources, and those who act decisively will shape the technological and economic landscape of the future. If Pakistan continues to delay, other nations will fill the vacuum, leaving it behind in yet another industrial revolution.
The country must seize this moment— investing in REE extraction, refining, and technology-driven industries— to transform its mineral wealth into economic power. Pakistan cannot afford to be a bystander in this global race; it must emerge as a contender, carving its place in the high-stakes REE industry and securing its future as a technological and economic powerhouse.
