Pakistan has mineral resources estimated at more than $7 trillion, and the government is seeking foreign investment to develop them, Federal Minister for Planning Ahsan Iqbal said.
Speaking to the Asia Society Policy Institute in New York, Iqbal said critical minerals are a key part of Pakistan’s economic strategy and its efforts to attract long-term international investment.
He said years of regional conflict and political instability had discouraged investment in large-scale mining projects. The government is now seeking international partners, including US companies, to develop the sector.
Iqbal said Pakistan is engaging US firms through initiatives including a memorandum of understanding with US Strategic Metals, while also exploring potential financing from the US Export-Import Bank and other international institutions.
He stressed that closer economic ties with the US would not mean reducing relations with China. According to Iqbal, Pakistan wants to work with both countries and does not view the relationships as mutually exclusive.
He said the first phase of CPEC brought around $25 billion in investment and helped expand electricity generation, highways, fibre-optic connectivity and Gwadar Port.
Iqbal said CPEC 2.0 is now focused more on private-sector cooperation, particularly in agriculture, industrial partnerships, minerals, technology, green energy and regional connectivity.
The minister also identified artificial intelligence and data centres as emerging investment opportunities. He said Pakistan’s national AI strategy covers data infrastructure, education, data sovereignty and AI applications across sectors.
Iqbal said available energy capacity could help Pakistan attract data-centre investment, although water availability remains a major constraint for both mining and AI-related infrastructure.
He also warned that Pakistan faces growing water-security risks following India’s decision to hold the Indus Waters Treaty in abeyance.
Iqbal said Pakistan is responding by accelerating work on the Diamer-Bhasha and Mohmand dams, which together are expected to provide about six million acre-feet of additional water storage when completed.
He said Pakistan had gone decades without building a major new reservoir and now needs to increase storage capacity to deal with climate-related water stress and potential disruptions in upstream flows.
At the same time, Pakistan is pursuing diplomatic channels to prevent the water dispute from escalating.
Iqbal said Pakistan’s large young population, geographic location and potential in minerals and technology give it opportunities to shift toward investment- and export-led economic growth.
The government’s broader strategy, he said, is to attract foreign capital while developing critical infrastructure and maintaining economic partnerships with both the US and China.
