In the 21st century, power no longer rests solely on oil wells or gold reserves; it lies buried deep within the Earth’s crust in the form of rare earth elements (REEs). These seventeen metallic elements, though dispersed and difficult to extract, have become the backbone of modern civilisation, powering the world’s technological, defence, and renewable energy sectors. From smartphones and electric vehicles to fighter jets and missile guidance systems, rare earths have transformed into strategic assets shaping the new world order.
The control over rare earth resources has redefined global geopolitics much like oil did in the 20th century. Today, China holds the commanding position, accounting for over 60 per cent of global production and nearly 90 per cent of refining capacity. This dominance has turned Beijing into a silent superpower in the tech and defence supply chain. The US, Japan, and Europe, once the champions of industrial technology, now depend heavily on Chinese exports of rare earths, giving China immense strategic leverage.
Rare earth elements are the new oil of the digital and defence age, determining the global balance of power.
The Russia–China strategic axis has further deepened the divide between the resource-rich East and the industrialised West. The US and its allies are now racing to diversify rare earth supplies from Africa, Central Asia, and South America to counter the Chinese monopoly. The global focus is thus shifting toward mineral diplomacy, resource nationalism, and strategic partnerships in the mining sector.
Pakistan, blessed with abundant natural resources, stands at a critical juncture in this emerging mineral-based geopolitics. Geological surveys have revealed the presence of rare earth and strategic minerals in regions like Balochistan, Gilgit-Baltistan, and Khyber Pakhtunkhwa, particularly in areas near Saindak, Reko Diq, and Chagai. Preliminary studies by the Geological Survey of Pakistan and international partners have confirmed deposits of rare earths, lithium, and other critical minerals vital for the energy transition.
While Pakistan’s mineral sector remains largely underdeveloped, its geostrategic location — bridging China, Central Asia, and the Arabian Sea — gives it a unique advantage to become a corridor for rare earth trade and processing. The China–Pakistan Economic Corridor (CPEC) can serve as a catalyst for establishing mineral exploration, refining industries, and technology transfer zones.
However, the policy framework governing Pakistan’s mineral resources requires urgent modernisation. The absence of a national mineral development policy focused on rare earths has hindered the efficient exploitation of these strategic materials. Pakistan must now move beyond raw mineral export and aim for value addition, refining, and downstream industries to truly benefit from its resources.
For Pakistan, a nuclear power with a growing defence sector, ensuring access to rare earths is both an economic opportunity and a security imperative.
In recent months, the Government of Pakistan has already begun taking concrete steps to attract investment in rare earth exploration and commercialisation. Under the Special Investment Facilitation Council (SIFC), several mineral blocks in Balochistan and Gilgit-Baltistan have been shortlisted for auction, including those containing rare earth elements. The government is also seeking joint ventures with foreign partners — particularly from China, Saudi Arabia, and the United Arab Emirates — to develop mining, refining, and value-added processing facilities. Discussions are underway to establish a dedicated mineral authority and to bring Pakistan’s mineral laws in line with international standards. These initiatives indicate that Islamabad is not merely identifying its resource potential but actively preparing to market and monetise its rare earth reserves within a structured policy framework.
Control over rare earths has now become synonymous with national security. The defence, space, and nuclear industries depend on a steady supply of these materials. For Pakistan, a nuclear power with a growing defence sector, ensuring access to rare earths is both an economic opportunity and a security imperative.
Developing partnerships with China, which leads the global rare earth processing market, can provide Pakistan with the necessary technological support. Simultaneously, collaboration with Turkey, Saudi Arabia, and Central Asian states under the framework of the Organisation of Islamic Cooperation (OIC) and the Shanghai Cooperation Organisation (SCO) could diversify the country’s investment base and strategic outreach.
Pakistan can also leverage its ports of Gwadar and Karachi as regional hubs for mineral exports and refining facilities, connecting South and Central Asia with the Middle East and Africa. This would not only boost Pakistan’s economic footprint but also transform it into a pivotal player in the emerging “mineral geopolitics” of the 21st century.
To transform potential into power, Pakistan must adopt a coherent and forward-looking policy framework:
- Formulate a National Rare Earth Strategy: Establish a dedicated authority under the Ministry of Energy or Petroleum to map, regulate, and promote rare earth exploration.
- Strengthen Strategic Partnerships: Deepen cooperation with China under CPEC for technology transfer, mining infrastructure, and refining capacity.
- Provide Investment Incentives: Offer tax holidays and special economic zones for rare earth extraction and processing industries.
- Enhance Research and Development: Encourage collaboration between universities, geological institutions, and defence industries to innovate in mineral processing.
- Ensure Environmental Safeguards: Promote sustainable mining practices to avoid ecological degradation and community displacement.
Rare earth elements are the new oil of the digital and defence age, determining the global balance of power. Nations that control, refine, or secure access to these critical materials will command the future of technology and security.
For Pakistan, the path is clear: strategic alignment, technological collaboration, and institutional reform can turn its mineral wealth into geopolitical strength. In an era when minerals define might, Pakistan must seize the opportunity to become not just a participant but a decisive player in the global rare earth equation.
The writer is the former mayor of Bahawalpur
