Domestic Instability Hinders Pakistan Critical Mineral Exports to US

The Government of Pakistan is attempting to position the country as a critical mineral and rare earth supplier to the United States, but domestic instability has stalled these efforts. While geological potential exists in Balochistan and Khyber Pakhtunkhwa, including the Reko Diq deposits, a lack of internationally verified data on commercially viable reserves makes large-scale production currently not credible.

Security threats are primary barriers to investment and workforce safety. The Baloch Liberation Army has increased attacks in Balochistan, while the Tehreek-e-Taliban Pakistan and Islamic State Khorasan Province maintain activity in Khyber Pakhtunkhwa. Terror attacks in Islamabad have further broadened risk perceptions for transport and safety.

Political polarization and regulatory uncertainty also impede progress. Disputes over provincial-federal jurisdiction and friction between civil-military leadership and the Pakistan Tehreek-e-Insaf opposition have created an unstable policy environment. These conditions are reportedly affecting existing Chinese investments and may deter potential interest from Saudi Arabia regarding the Reko Diq site.