New Delhi, Feb 18 (NationPress) Pakistan's ambition to establish itself as a key provider of rare earths and critical minerals for the United States remains largely unfulfilled, as highlighted in a recent report, unless there are improvements in domestic security, political stability, and regulatory clarity.

The analysis published by Pakistan's The Friday Times notes that despite the country's geological potential, including significant deposits at Reko Diq and indications of rare earth elements in Balochistan and Khyber Pakhtunkhwa, the ongoing issues related to security, governance, and the investment climate pose substantial challenges.

Recently, Balochistan has witnessed a rise in attacks by the Baloch Liberation Army. Additionally, the activities of Tehreek-e-Taliban Pakistan (TTP) and Islamic State Khorasan Province (ISKP) in Khyber Pakhtunkhwa, alongside terror incidents in Islamabad, heighten the perception of risk regarding transport corridors and the safety of the workforce.

“The displacement in the Tira Valley due to counter-TTP operations illustrates how militancy influences the broader environment in which mining operations must take place,” the report emphasizes.

This escalation in Balochistan has negatively impacted investor sentiments, particularly among those who have already invested heavily, including Chinese stakeholders, as the report suggests.

Without stabilizing existing investments, attracting further capital will be a challenge. The report stresses that assuring Beijing through transparent policies, enhancing security for Chinese personnel, and resolving energy payment disputes promptly should be Pakistan’s immediate focus, even while engaging with Washington.

Moreover, internationally verified data on commercially viable rare earth reserves is still scarce. “Exploration and certification are prerequisites before large-scale production can be deemed credible,” it adds.

The report also indicates that provincial politics serve as another obstacle to investment inflows, as disputes over provincial-federal jurisdiction persist. Mining requires regulatory clarity over long periods, not just months.

The political divide between the current civil-military leadership and the Pakistan Tehreek-e-Insaf (PTI)-led opposition creates uncertainty regarding policy stability. Investors might worry that agreements reached under one administration could be renegotiated under a different one, the report cautions.

Lastly, the report warns that if security conditions worsen, the reported interest of Saudi Arabia in acquiring a stake in Reko Diq may not materialize.