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Pakistan’s Critical Minerals Potential: From Raw Exports to Value-Added Industry
Pakistan is poised to become a significant player in the global critical minerals market, having recently initiated exports and attracting international investment. However, realizing the full potential of its estimated $8 trillion in mineral wealth requires a strategic shift from raw material extraction to a robust, ESG-compliant value chain.This article examines Pakistan’s progress, challenges, and opportunities in developing its critical minerals sector as of January 25, 2026.
First Shipment and Strategic Partnerships
In October 2025, Pakistan dispatched its inaugural shipment of enriched rare earth elements and critical minerals to US Strategic Metals (USSM) in Missouri, marking a milestone in the country’s economic development. This $500 million agreement, signed in September 2025, includes antimony, copper concentrate, and rare earth elements like neodymium and praseodymium. The collaboration between USSM and Pakistan’s Frontier Works Organisation aims to establish an integrated domestic value chain encompassing exploration, processing, and refining to maximize local economic benefits.
Untapped Potential and Current Contribution
Pakistan possesses vast deposits of copper, gold, chromite, and rare earth elements, estimated at $8 trillion across 600,000 square kilometers, encompassing 92 identified minerals, with 52 commercially extracted. Despite this wealth,the mining sector historically contributes less than 3% to Pakistan’s GDP.The Institute of Cost and Management Accountants of Pakistan (ICMA) emphasizes that simply exporting raw minerals will not drive considerable economic transformation. ICMA research suggests a gradual economic impact, with