RECENT Pak-US mining and minerals agreement shows the sharp diplomacy played by Pakistan.
It also clearly signals America’s avoidance of considering the voices of locals at the altar of geopolitical ambitions. As the US pivots toward securing critical mineral supplies to counter China’s dominance, it may risk repeating the same extractive patterns that have irked locals for decades. The timing of this deal is very significant. At least two US government delegations visited Pakistan in April to discuss proposals to enhance economic collaboration, coinciding with Donald Trump’s return to the presidency and his meeting with Pakistan Army Chief, Field Marshall Asim Munir. Trump’s references to Pakistan’s “massive oil reserves” is convenient reason for America’s actual intentions. Balochistan’s vast deposits of copper, gold, lithium and rare earth minerals are essential for modern warfare and surveillance technologies. This has given new strategic edge to Pakistan.
Balochistan holds some of the world’s largest untapped reserves of these critical materials, making it strategically vital for any global superpower. The US military, as the world’s largest consumer of these minerals, has set its sights on a region that could reduce American dependence on Chinese supply chains. However, this geopolitical calculation comes at huge human cost. The most local groups claim to have endured decades of systematic exploitation without their consent. Previous mega-projects including the Economic Corridor, Reko Diq and Saindak have brought no tangible benefits to local communities. Instead, these ventures have resulted in displacement, environmental degradation and increased militarization. Despite significant extraction, locals report few improvements in basic infrastructure or employment prospects, with most benefits flowing to central authorities and foreign stakeholders.
The province’s tragic paradox remains very evident. Despite being Pakistan’s largest and most resource-rich region, Balochistan suffers from profound poverty and underdevelopment. According to Pakistan Institute of Development Economics research, 70 percent of Balochistan’s population lives below the poverty line, with a literacy rate of just 54.5 percent. Nearly half of all children in the province suffer from malnutrition, while 70 percent of children aged 5-16 are not in school significantly higher than the national average of 43 percent. This systematic deprivation has fueled decades of local resistance. The Balochistan Liberation Army and other separatist groups have repeatedly made clear that no foreign investment is welcome without Baloch consent. The number of attacks perpetrated by the BLA and other banned Baloch insurgent groups increased by 119 percent between 2023 and 2024, demonstrating the urgent need for local inclusive policies. The US designation of the BLA as a Foreign Terrorist Organization in 2025 shows Washington’s strong strategic support to Pakistan. This classification, timed perfectly with the mining deal announcement, effectively aligns the United States with Pakistan. While it is also eminent to contain grievances over resource exploitation.
Extremists have labelled the US-Pakistan mineral deal as a “strategic mistake,” warning that it would further embolden powerful entities and deepen the marginalisation of the people of Balochistan. Such warnings deserve consideration. The recently passed Mines and Minerals Act 2025 in Balochistan has already sparked widespread opposition, with critics arguing it strengthens federal control over provincial resources in violation of the 18th Amendment. Even Jamiat Ulema-i-Islam party, whose lawmakers initially supported the legislation, later issued show-cause notices to them, calling the Act “detrimental to the Local people .”
Pakistan’s desperate financial situation, trapped in cycles of IMF debt and economic collapse, makes it an eager partner for any foreign capital injection, regardless of long-term consequences. Prime Minister Shehbaz Sharif’s optimistic claims at the Pakistan Minerals Investment Forum 2025 that mineral reserves could help break the country’s IMF dependence ring new hopes but when viewed against decades of similar promises, it needs urgently to be materialized into local development. The United States, by entering this arrangement, becomes another external actor prioritizing geopolitical competition. Washington’s focus on countering Chinese influence in the region overshadows any genuine concern for local welfare. This approach transforms mining sites into potential battlegrounds for two major superpowers. Thus it is important for Pakistan to play its diplomacy smooth enough to avoid adding another chapter in the region’s long history of unrest.
China’s Belt and Road Initiative has added economic transformation to the region but also faced fierce opposition, with infrastructure attacks. However US-backed ventures, America’s mining ambitions should also take care of locals to avoid any amplification of existing issues. The US-Pakistan mining deal represents another chance to give locals new economic avenues which should not be betrayed. Legitimate demands for local resource control should be supported and extractive policies be shunned. Else mineral wealth will continue flowing out of Balochistan while poverty, militarization and human rights violations persist. The current trends suggest that strategic considerations of America appear to be taking precedence over humanitarian concerns in South Asia. Thus, managing two superpowers on the same ground will take extra inch from Pakistan’s diplomats.
— The writer is an educator, based in Sindh.
