Pakistan wants to earn billions with its 'rare earth treasure' while walking US-China tightrope

Time of India

3 hours ago

Pakistan's Army Chief
Asim Munir
has said the country possesses a 'rare earth treasure' that could ease its debt burden and elevate it among prosperous nations, ANI reported citing Pakistan-based media.
His remarks come at a time when rare earths have become central to global supply chain strategies, with China deploying them as a tool of economic leverage and the United States, India, and others scrambling to diversify access.
In an interaction published by Jang media, Munir said, 'Pakistan has a rare earth treasure; with this treasure, Pakistan's debt will also be reduced, and Pakistan will soon be counted among the most prosperous societies.'
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He pointed specifically to the
Reko Diq mining project
in Balochistan, predicting that from next year Pakistan could earn at least $2 billion annually, with profits expected to rise year after year.
China's dominance in rare earths as India in a tight spot
China accounts for the bulk of global rare earth mining and nearly all refining capacity. Over the past year, Beijing has tightened export controls on minerals and high-performance magnets crucial for electric vehicles, defence systems and electronics.
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In early 2025, it placed restrictions on shipments to the United States, forcing Washington into a temporary tariff truce. While some export curbs were relaxed, military-grade materials remain under control, leaving global industries wary.
As for India, which imports over 70% of its rare earth requirements from China, has been exposed to these supply chain disruptions.
Automakers such as Maruti Suzuki and Bajaj have reported hurdles in their EV plans, while electronics and machinery sectors have also faced pressure. Economists warn that prolonged shortages could ripple across multiple industries.
To counter this, New Delhi is preparing a ₹5,000 crore scheme to ramp up domestic production and reduce dependence on Chinese imports.
Against this backdrop, Munir is attempting to present Pakistan's mineral wealth as a strategic card.
The U.S. factor
The United States has stepped up efforts to secure alternative sources of critical minerals, viewing overreliance on China as a national security risk. Munir has visited the United States twice in the past few months for high-level engagements, underscoring a warmer phase in ties.
On Pakistan's Independence Day, US Secretary of State Marco Rubio said Washington was keen to 'explore new areas of economic cooperation, including critical minerals and hydrocarbons.' His statement followed the announcement of a new trade agreement aimed at lowering tariffs and attracting US investment in Balochistan's mining projects.
Also Read:
US eyes critical minerals, hydrocarbons in fresh economic push with Pakistan
Washington has also expanded energy cooperation with Islamabad, with Pakistan's largest refiner sealing a deal to import U.S. crude shipments as part of a wider oil deal. Furthermore, Trump has made overly optimistic claims about helping Pakistan to develop large oil reserves for potential exports.
Last month, Donald Trump unveiled a 25% tariff on Indian imports while simultaneously announcing an oil partnership with Pakistan. 'We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves… Who knows, maybe they'll be selling Oil to India some day!' Trump wrote on Truth Social.
These moves point to a broadening economic and strategic agenda between the two countries, where minerals could emerge as a new axis of cooperation. For Washington, Pakistan's rare earth potential is another incentive to deepen ties. The Washington Post earlier reported that US officials view Pakistan's untapped reserves as a hedge against Chinese dominance.
However, for Munir & Pakistan government this will be an act of balancing global powers.
Can Pakistan really make it happen?
But Pakistan's strategic geography also ties it closely to Beijing. China is building a 2,000-mile transport network through northern Pakistan to a southern port, linking its Belt and Road Initiative to the Arabian Sea.
At the same time, separatist violence in Balochistan, where Reko Diq is located, continues to target mining operations. The US recently designated the Balochistan Liberation Army (BLA) as a terrorist organisation, aligning with Islamabad's security concerns.
Munir has publicly stated that Pakistan seeks equilibrium in its external relations. 'We will not sacrifice one friend for the other,' he was quoted as saying in Jang media, signalling a desire to balance ties with both the U.S. and China.