ISLAMABAD: Pakistan is heading toward a major political and constitutional confrontation as the federal government and provinces clash over control of the country’s vast rare earth mineral reserves—strategic resources now seen as more valuable than oil and gas.
Senior analyst Najam Sethi recently spotlighted the brewing conflict on his television show, highlighting disputes over ownership, control, and revenue-sharing from rare earth mining projects. With estimated reserves valued at an astonishing US$8 trillion—nearly 20 times Pakistan’s current GDP—the stakes are monumental.
Provinces assert their constitutional right to up to 90% of the proceeds from natural resources discovered within their borders. The federal government, however, claims these assets belong to the entire nation, citing its responsibility for national infrastructure, development, and foreign investment facilitation.
The conflict echoes the historic grievances of Balochistan over the Sui gas fields and mirrors past tensions during the Reko Diq negotiations. While nationalist parties demand full provincial control, Islamabad argues that provinces lack the financial capacity, technical expertise, and global credibility to manage such high-stakes ventures.
To assert its leadership, the federal government recently hosted a high-profile conference—attended by the Prime Minister, Army Chief, and international investors—to unveil a federal report confirming Pakistan’s rare earth reserves and potential as a global supplier. It also highlighted ongoing efforts to revise mining laws and fast-track exploration through international partnerships.
Yet, the move faces strong resistance due to the 18th Constitutional Amendment, which grants provinces significant autonomy over natural resources. Legal experts believe this clash may soon head to the newly constituted Constitutional Bench of the Supreme Court, setting the stage for a landmark decision that could redefine resource governance and Pakistan’s economic future.
