‘Mineral Corridor’: Positioning Pakistan in the era of resource diplomacy—III

This is Part III of a multi-part “The Mineral Corridor” series, examining how Pakistan can position itself within the emerging global mineral order through resource diplomacy, institutional credibility and strategic partnerships. The global transition towards critical minerals is creating a new landscape of economic diplomacy. As countries seek reliable supplies of minerals essential for future industries, resource-rich economies are gaining new strategic opportunities. However, history shows that geological wealth alone does not guarantee influence. Countries become strategically relevant when they can build trust, establish partnerships and position themselves as reliable participants in global economic networks. For Pakistan, the emerging mineral order presents both; strategic test and opportunity. The question is no longer only whether the country possesses mineral potential, but whether it can translate that potential into diplomatic relevance. In an increasingly competitive environment, Pakistan’s success will depend on its ability to build credible institutions, manage diverse partnerships and align international cooperation with long-term national interests. Also read: ‘Mineral corridor’: new geopolitics of critical minerals—II Pakistan’s geographical position provides an important foundation for such engagement. Located between China, Central Asia, the Middle East and the Arabian Sea, Pakistan sits at the intersection of several important economic regions. Its location creates possibilities for regional connectivity and economic cooperation. However, geography alone cannot create strategic influence. In the new mineral economy, countries are judged not only by what resources they possess, but also by the reliability of their institutions and the quality of partnerships they can build. Pakistan’s mineral relevance is supported by its geological position, particularly its location along the Tethyan Metallogenic Belt, a region known for significant mineral potential extending across parts of Eurasia. Yet geological potential is only the starting point. The ability to attract international interest depends on whether countries can provide credible information, transparent processes and confidence for long-term engagement. The first challenge for Pakistan is therefore building mineral credibility. Global mineral partnerships increasingly depend on more than resource availability. Investors and industrial partners require reliable geological data, predictable regulations and clear project frameworks before committing long-term capital. Countries competing for mineral investment are not only presenting their resources; they are presenting their institutional capacity. Pakistan’s limited geological information remains an important constraint. A significant portion of the country’s territory requires further geological assessment and modern mapping to reduce uncertainty for investors. Strengthening geological data systems would not only improve exploration prospects but also enhance Pakistan’s ability to present credible opportunities to international partners. Aslo read: ‘Mineral Corridor’: from mines to manufacturing—I The second challenge is institutional confidence. Mineral projects often involve decades-long investment horizons, making policy stability and regulatory certainty essential. International partners evaluate not only the quality of resources but also the ability of institutions to manage agreements effectively and provide a predictable operating environment. Pakistan’s experience with the Tethyan Copper Company dispute remains an important lesson in this regard. The international arbitration case, which resulted in a substantial award against Pakistan before being resolved through a revised partnership structure, highlighted the importance of contract certainty and institutional coordination. The episode demonstrated that mineral diplomacy begins with domestic credibility. Countries seeking international partnerships must ensure that their regulatory systems can support long-term cooperation. The third challenge is managing strategic partnerships in an increasingly complex global environment. Critical minerals are becoming closely linked with economic security and industrial policy, creating both opportunities and diplomatic sensitivities. For Pakistan, the objective should not be to view mineral cooperation through the lens of geopolitical competition, but to use it as a platform for broader economic engagement. China remains an important partner due to its industrial capabilities, existing economic relationship with Pakistan and experience across mineral-related sectors. At the same time, global efforts to diversify mineral supply chains are creating opportunities for engagement with Western economies, Japan, Gulf investors and other technology partners. Recent developments indicate that Pakistan’s mineral diplomacy is already expanding beyond traditional partnerships. The reported agreement between Pakistan’s Frontier Works Organization (FWO) and US Strategic Metals (USSM), valued at around $500 million, reflects growing international interest in Pakistan’s potential role in emerging mineral supply chains. Such developments demonstrate the importance of maintaining a balanced approach that allows Pakistan to engage multiple partners while protecting its long-term economic interests. This requires a shift from viewing international partnerships simply as sources of investment towards building mutually beneficial strategic relationships. Successful mineral diplomacy requires the ability to negotiate effectively, evaluate long-term implications and ensure that cooperation supports national priorities. Pakistan’s engagement through platforms such as the Pakistan Minerals Investment Forum (PMIF) reflects an effort to create greater international visibility for its mineral sector. Such platforms are important because they bring together governments, investors, mining companies and technology providers. However, attracting attention is only the beginning. Converting international interest into sustainable partnerships requires institutional readiness, policy consistency and effective project development. CPEC also provides an important framework within this evolving landscape. The first phase of CPEC focused primarily on addressing infrastructure gaps through energy projects and connectivity. The emerging direction under CPEC 2. 0 towards agriculture, mining and industrial cooperation reflects a broader transition from infrastructure development towards productive economic engagement. The opportunity now is to align such cooperation with Pakistan’s wider objectives of economic diplomacy and sustainable development. However, Pakistan’s mineral diplomacy cannot depend only on external partnerships. Domestic institutional capacity will determine how effectively the country benefits from international engagement. This includes stronger coordination among stakeholders, improved investment facilitation and the ability to develop agreements that balance foreign participation with national development objectives. The global mineral transition offers Pakistan an opportunity to strengthen its economic relevance, but opportunities alone do not create strategic influence. Countries that benefit from the new mineral economy will be those capable of combining resources with credibility, diplomacy and long-term vision. Pakistan’s challenge is therefore not merely to attract interest in its mineral potential. It is to become a trusted partner in a changing global economic landscape. The mineral corridor should not only connect resources with markets; it should connect Pakistan with a new era of resource diplomacy, international cooperation and strategic partnership. Copyright Business Recorder, 2026

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