Pakistan must move beyond export raw critical minerals and focus on processing and value addition to boost foreign exchange earnings and achieve sustainable economic growth, according to a policy note issued by the Institute of Cost and Management Accountants of Pakistan (ICMA).
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The policy note followed Pakistan’s first-ever shipment of critical minerals to the United States in October 2025, which ICMA described as a historic milestone. However, the institute stressed that the long-term economic benefits would only materialise if raw minerals were converted into processed, value-added products that meet global Environmental, Social and Governance (ESG) standards.
ICMA identified several challenges hindering this transition, including fragmented governance, unclear regulations, weak infrastructure, limited local processing capacity, security and political risks, inadequate environmental and social oversight, and a shortage of skilled labour in the mining sector. Addressing these issues, it said, is essential to build investor confidence and unlock the country’s vast mineral potential.
Pakistan formally entered the global critical minerals market after dispatching enriched rare earth elements and other minerals to Missouri-based US Strategic Metals under a $500 million agreement. The shipment included antimony, copper concentrate and rare earth elements such as neodymium and praseodymium. Signed in September 2025, the deal envisages an integrated domestic value chain covering exploration, processing and refining to maximise local value addition.
Despite possessing large deposits of copper, gold, chromite and rare earth elements, Pakistan’s mining sector has historically contributed less than 3 per cent to GDP. ICMA noted that while the policy shift towards value-added exports is significant, meaningful economic impact is expected to unfold gradually over the next decade.
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Pakistan’s mineral wealth is estimated at $8 trillion, spanning 92 identified minerals. ICMA highlighted projects such as Reko Diq and growing international interest from the United States, China and Saudi Arabia as opportunities, stressing that policy consistency and sustainable mineral governance are critical to fully capitalise on this potential.