Pakistan Estimates Mineral Wealth at $7 Trillion, Warns Over Indus Water Treaty
Pakistan estimates its mineral endowment at more than $7 trillion, according to Planning Minister Ahsan Iqbal. The valuation, announced on August 26, 2026, highlights a resource base that requires heavy up-front investments and extensive gestation periods. However, international resource developers face significant hurdles due to the country’s volatile political climate.
Mining multi-billion-dollar mineral reserves requires an immense upfront capital outlay and complex logistical engineering. Mr. Iqbal outlined these exact operational barriers during a conversation with Farwa Amin, director for South Asian initiatives at the Asia Society Policy Institute in New York, as noted in a planning ministry statement.
Macroeconomic Stabilization and US Partnerships
Improved macroeconomic stability has allowed Islamabad to actively court foreign partners, including US firms. According to the planning ministry, these diplomatic and economic overtures involve mechanisms such as a memorandum of understanding with US Strategic Metals, potential EXIM financing, and active participation in critical-minerals ministerial processes.
The Indus Waters Treaty and Geostrategic Pressures
Beyond natural resources, Pakistan faces mounting infrastructural and environmental challenges. Mr. Iqbal stated that India unilaterally held the Indus Waters Treaty in abeyance, describing the move as the “first instance” in modern history of water being weaponized. He warned that the 70-year-old pact, which survived multiple wars, now presents a serious security challenge by turning a shared resource into a potential instrument of pressure.
In response to these upstream water security concerns, Islamabad is accelerating the construction of new reservoirs. The Diamer-Bhasha and Mohmand dams are slated to add roughly six million acre-feet of storage capacity. These engineering projects aim to stabilize supply against climate-driven variability.
Balancing Relations with Beijing and Washington
Pakistan’s geoeconomic strategy centers on the “Uraan Pakistan” framework and the 5E strategy, shifting foreign policy away from the traditional security-geopolitics axis. Yet, this recalibration does not mean a retreat from established bilateral ties. Mr. Iqbal emphasized that engagement with the United States will not come at the expense of China.
China remains a trusted partner that delivered approximately $25 billion in investment through the first phase of the CPEC. That capital injection helped end prolonged power shortages while upgrading highways, fiber-optic networks, and the Gwadar Port.