Pakistan has estimated mineral wealth of more than $7 trillion and is seeking foreign investment to develop its extensive reserves, Federal Minister for Planning Ahsan Iqbal said while outlining the government’s broader economic strategy. Speaking to the Asia Society Policy Institute in New York, Iqbal said critical minerals are becoming an important part of Pakistan’s economic plans as the country seeks long-term investment from the United States and other international partners. He said Pakistan wants to utilise its natural resources while also expanding opportunities in technology, artificial intelligence, energy, agriculture and regional connectivity.
Iqbal said decades of regional conflict and political instability had discouraged investors from making the long-term commitments required for major mining projects. Large-scale mineral development generally requires substantial capital and extended project timelines, making political and economic stability important considerations for international investors. According to the minister, improving macroeconomic conditions are now creating an opportunity for Pakistan to attract foreign partners and move towards the development of its mineral resources. The government is therefore seeking investment from international companies that can contribute capital, technology and expertise to the country’s mining sector.
The minister said Pakistan is also engaging companies from the United States in the critical minerals sector. These efforts include a memorandum of understanding with US Strategic Metals, potential financing support from the US Export-Import Bank and participation in international forums focused on critical minerals. The government is looking to build stronger economic links with the United States through investment and commercial cooperation while continuing its longstanding relationship with China.
Iqbal stressed that deeper economic engagement with the United States would not come at the expense of Pakistan’s relationship with China. He described China as a trusted partner and said Pakistan does not consider its relationships with major global economies to be a zero-sum choice. According to the minister, Pakistan intends to maintain economic cooperation with multiple countries while seeking investment and partnerships across sectors that can contribute to long-term economic growth.
Discussing the China-Pakistan Economic Corridor, Iqbal said the first phase of CPEC brought approximately $25 billion in investment to Pakistan and contributed to addressing the country’s power shortages. He also highlighted improvements in highways, fibre-optic connectivity and Gwadar Port that were developed as part of the wider corridor programme. According to him, the next phase, referred to as CPEC 2.0, is expected to place greater emphasis on business-to-business cooperation rather than being focused primarily on government-led projects.
The minister said CPEC 2.0 is being structured around areas including economic growth, livelihoods, innovation, green energy and regional connectivity. Mining and minerals, climate-resilient agriculture, industrial joint ventures, technology and human-resource development are among the sectors being targeted for cooperation. He said several billion dollars in joint-venture agreements have already been signed during recent business events, indicating an effort to expand private-sector participation in bilateral economic activity.
Alongside mineral development and industrial investment, Iqbal identified artificial intelligence and digital infrastructure as emerging areas where Pakistan could attract international capital. He said the government is working to develop a national AI ecosystem that includes data centres, education, data sovereignty and sector-specific applications. Potential applications are being considered across areas such as healthcare, industry and governance, where AI and digital technologies could be deployed for specialised purposes.
Iqbal also pointed to Pakistan’s available energy capacity as a potential advantage for data-centre investment. He said the country has surplus energy capacity from both renewable and conventional sources, which could support data-centre development in the short and medium term. Reliable energy availability is a key requirement for data centres because of their continuous electricity demand, making energy infrastructure an important component of Pakistan’s plans for digital infrastructure.
The minister linked Pakistan’s plans for mining, artificial intelligence and energy with the country’s wider water security challenge. He warned that India’s decision to hold the Indus Waters Treaty in abeyance has created a new security challenge for Pakistan and said water could potentially be used as an instrument of pressure. Against this backdrop, he said Pakistan is accelerating work on major water infrastructure projects to increase storage capacity and strengthen its ability to manage water-related risks.
Iqbal highlighted the Diamer-Bhasha and Mohmand dams, which together are expected to add roughly six million acre-feet of water storage capacity once completed. He said Pakistan had gone approximately four to five decades without developing a major new reservoir and now needs to address the resulting infrastructure gap. Additional storage capacity is expected to support water security, help manage climate-related fluctuations and reduce vulnerability to disruptions in upstream water flows.
The minister said Pakistan is simultaneously pursuing diplomatic channels to prevent water-related tensions from escalating. He stressed that South Asia needs greater attention to development, poverty reduction, health, education and regional connectivity. In his view, long-term regional stability requires economic development and cooperation alongside efforts to address security and resource-related concerns.
Iqbal also pointed to Pakistan’s geographic position, young population and expanding technology sector as important economic opportunities. He said these factors could support the growth of IT services, mineral development, regional trade and cooperation with major international economies. The government’s broader strategy, according to the minister, is to combine economic stabilisation with investment in strategic infrastructure and productive sectors.
The strategy includes developing critical mineral resources, strengthening water infrastructure, expanding digital and AI capabilities, increasing technology investment and improving regional connectivity. At the same time, Pakistan intends to maintain economic relationships with both the United States and China. The government is seeking to use these relationships to attract investment and technical expertise while developing sectors that could contribute to employment, exports and long-term economic activity.
With estimated mineral wealth exceeding $7 trillion, the scale of Pakistan’s resource base remains a major part of the government’s investment strategy. Iqbal’s remarks indicate that Islamabad is seeking to move beyond resource identification towards attracting international capital and developing the infrastructure, technology and partnerships needed to turn mineral and other strategic assets into economic opportunities.
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