On August 21, the Asian Development Bank (ADB) confirmed a $300 million loan to support Pakistan’s Reko Diq copper and gold project, one of the world’s largest untapped mineral reserves. This decision marks a vote of confidence in Pakistan’s economic direction and highlights the country’s potential to play a significant role in the global minerals economy. With copper in rising demand for renewable energy and digital technologies, Pakistan has before it a defining opportunity to translate natural wealth into long-term prosperity.

“Copper is central to the global green transition, electric vehicles, renewable grids, and digital infrastructure all depend on secure supplies.”

Copper is central to the global green transition. Electric vehicles, renewable power grids, and digital infrastructure all depend on secure and affordable copper supplies. For Pakistan, which has struggled with trade deficits and reliance on external borrowing, Reko Diq represents an opportunity to diversify exports and generate sustainable revenue. Properly managed, the mine could deliver billions of dollars annually, improve investor confidence, and anchor broader industrial development.

This is not simply about extracting minerals, it is about positioning Pakistan within the supply chains of the 21st century. Few countries enjoy the advantage of possessing resources so closely tied to future global growth. Skeptics often cite the “resource curse”, the tendency of natural wealth to create dependency, corruption, or inequality. But this is not inevitable. Countries such as Botswana transformed diamond revenues into stable growth through transparent institutions, long-term savings funds, and careful planning. Pakistan can follow a similar path.

To do so, the state must ensure that Reko Diq revenues are managed openly and effectively. Transparency in contracts, independent oversight, and parliamentary scrutiny can prevent leakages. Establishing a sovereign minerals fund would help ensure that short-term windfalls are converted into investments in education, health, digital infrastructure, and renewable energy. This approach would allow mineral wealth to strengthen Pakistan’s foundations rather than create distortions.

Reko Diq is located in Balochistan, a province that has long faced economic marginalization despite its vast resource base. The project’s credibility will rest on whether local communities see tangible benefits. Ensuring local employment, fair revenue-sharing, and environmentally responsible mining practices is therefore essential.

“The project’s credibility will rest on whether local communities see tangible benefits.”

If communities feel excluded or harmed, the project risks becoming a flashpoint. But if they are made stakeholders, through guaranteed jobs, skill development, and transparent use of royalties, Reko Diq can symbolize inclusive national development. By building trust in Balochistan, Pakistan can transform the mine into a story of regional integration and opportunity.

The ADB’s involvement is significant not only for financing but also for governance standards. It signals international recognition of Pakistan’s credibility in resource management and complements partnerships such as the China-Pakistan Economic Corridor. Yet the real challenge lies in developing a national minerals strategy.

Pakistan must not stop at copper extraction. Investing in downstream industries, such as refining, smelting, and copper-based manufacturing, would maximize value-added exports. Coupled with digitalization, green technology, and industrial policy, this approach could turn Pakistan into a hub for copper-related industries, creating jobs far beyond the mine itself.

Reko Diq is more than a mining project. It is a test of Pakistan’s ability to manage natural wealth responsibly, inclusively, and strategically. If approached with vision, it can strengthen the economy, empower Balochistan, and provide the resources to fund social development.

“Establishing a sovereign minerals fund would help convert windfalls into investments in education, health, and renewable energy.”

The ADB’s $300 million loan is more than financial assistance; it is an endorsement of Pakistan’s potential to translate resources into resilience. By avoiding the pitfalls of dependency and corruption, and by embracing transparency and inclusive growth, Pakistan can turn Reko Diq’s copper dreams into a durable pathway of national prosperity.

Disclaimer: The opinions expressed in this article are solely those of the author. They do not represent the views, beliefs, or policies of the Stratheia.