Pakistan is entering a critical phase in its resource development strategy.

By Assadullah Channa

Beneath Pakistan’s mountainous terrain lies a vast reserve of rare earth elements (REEs), estimated to be worth between $6 to $8 trillion. These minerals are essential to the global supply chain for technologies such as smartphones, electric vehicles, renewable energy systems and advanced defense equipment.

Their discovery has generated significant interest from both domestic policymakers and international investors. Yet, as the country races to unlock this potential, it risks plunging headlong into an environmental catastrophe of staggering proportions.

This rapid push toward extraction has raised important questions about the adequacy of environmental safeguards and whether current governance systems can manage the long-term impacts of large-scale resource development. Without careful planning and oversight, the benefits of rare earth mining could be overshadowed by lasting ecological and social costs.

Recent geochemical mapping, conducted jointly by the Geological Survey of Pakistan and the China Geological Survey, has revealed extensive concentrations of REEs across nearly 360,000 square kilometers of Pakistani territory.

These deposits, primarily found in carbonatite-related formations, represent not just economic opportunity but ecological peril. For every ton of rare earths extracted, the process generates 2,000 tons of toxic waste, including one ton of radioactive residue.

This toxic arithmetic is not a footnote; it is the central equation of extraction—one that threatens to poison Pakistan’s soil, water and air for generations. Much of the exploratory work has been described as unscientific, random and insufficient. This knowledge gap means that decisions about extraction are being made without a full understanding of the environmental consequences.

Eight strategic sites in Khyber Pakhtunkhwa, stretching from Mansehra to the Pakistan-Afghanistan border, have been earmarked for exploration. Drilling operations at Mashkichah in District Chagai are already underway, but the environmental implications raise serious concerns about transparency and accountability.

Pakistan’s ecological foundation seems fragile. The country faces one of the world’s most severe water crises, with over 60 percent of Balochistan’s population lacking access to safe drinking water. Groundwater depletion is accelerating and arsenic contamination in aquifers has reached dangerous levels.

Rare earth processing, which requires massive volumes of water—up to 500,000 gallons per ton of lithium extracted—will place enormous strain on these already stressed resources.

The competition for water between mining operations and local communities will be fierce and, in many cases, devastating. Contaminated aquifers can remain unusable for decades, wiping out agricultural potential in rural areas. The town of Talaap in Balochistan offers a grim preview of what lies ahead. For years, it has supplied water to the Saindak copper-gold project, yet its own residents have seen little benefit. The expansion of rare earth extraction threatens to replicate this pattern across multiple provinces, draining resources while delivering profits elsewhere.

The health consequences of rare earth exposure are equally alarming. REEs are known to cause cancer, cardiovascular damage, respiratory failure and neurological disorders. These elements disrupt fundamental biological processes, affecting multiple organ systems and compromising immune, reproductive and nervous functions.

The burden of this environmental violence falls disproportionately on the most vulnerable and those with limited access to healthcare. Compounding these risks is Pakistan’s seismic vulnerability.

The 2005 Kashmir earthquake was a stark reminder of the region’s tectonic instability. Balochistan continues to experience regular seismic activity, posing a direct threat to mining infrastructure. Rare earth extraction requires massive tailings dams to store radioactive waste and toxic chemicals. These structures, even under ideal conditions, are prone to failure.

Pakistan’s mineral wealth is undeniable. It holds the world’s fifth-largest copper-gold reserves, the second-largest coal and salt reserves and 92 discovered minerals in total. Yet the sector contributes less than 2 percent to the national GDP.

This extraction-without-development model ensures that Pakistan captures minimal value from its resources while bearing the full brunt of environmental and social costs. The Saindak mine generated $2 billion between 2002 and 2017, yet Balochistan remains the poorest province. Proposed contracts for rare earth projects allocate just 10 percent equity to local communities, while foreign partners claim up to 70 percent.

 This is neo-colonial resource extraction, refined and repackaged for the 21st century. External geopolitical pressure further affects Pakistan’s mineral policy. In April 2025, U.S. State Department official Eric Meyer visited Islamabad just before the rushed passage of the Balochistan Mines Act. The legislation, which centralized control over provincial minerals, was suspended after widespread protests.

The risks Pakistan faces from rare earth mining are not abstract; they are immediate, measurable and potentially irreversible. If extraction proceeds without proper safeguards, the country could face widespread contamination of its water sources, accumulation of radioactive waste and loss of arable land. These impacts won’t disappear when the mining ends; they will linger for decades, affecting public health, agriculture and access to clean water.

Pakistan must make a critical decision: whether to pursue mineral wealth at any cost or to develop policies that balance economic opportunity with environmental protection and community welfare.

The country’s long-term stability depends on whether it can move beyond short-term profits and invest in sustainable practices and scientific oversight. This isn’t just about reputation; it’s about resilience.