Islamabad: Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Tuesday said Pakistan was estimated to possess mineral resources worth over $7 trillion, while warning that India’s unilateral decision to hold the Indus Waters Treaty in abeyance had created a new security challenge by potentially weaponizing water.
Speaking in a conversation with Farwa Amin, Director for South Asian Initiatives at the Asia Society Policy Institute in New York, the minister said the nearly 70-year-old treaty had remained intact even during wars between Pakistan and India, but its unilateral suspension had changed the strategic landscape , a news release said.
‘This time around, the Indian government has unilaterally held it in abeyance. and that sort of creates a new challenge that first time probably, water has been weaponized in modern history,’ he said.
Ahsan Iqbal warned that India could potentially manipulate water flows by withholding water when Pakistan needed it for agriculture and releasing it when it was not required.
He said Pakistan was responding on two fronts, including accelerated construction of water reservoirs and diplomatic engagement to prevent the issue from escalating into conflict.
The Diamer-Bhasha and Mohmand dams, upon completion, would provide about six million acre-feet of additional storage capacity, he said, adding that Pakistan had not constructed a major new reservoir for nearly four to five decades and therefore needed to bridge the gap.
The minister said the reservoirs would help address climate-induced water variability as well as reduce Pakistan’s vulnerability to any upstream manipulation of water flows.
He stressed that Pakistan could not allow the issue to go unnoticed, while calling for diplomatic efforts to ensure that South Asia remained focused on development, poverty reduction, disease control and education for its large young population.
Ahsan Iqbal said geoeconomics was at the centre of Pakistan’s foreign policy under the Uraan Pakistan framework and its 5Es strategy, with the country seeking to transform relations with major economies from a security-centric approach towards mutually beneficial economic partnerships.
He identified critical minerals as a major area of opportunity, saying Pakistan’s mineral endowment was estimated at more than $7 trillion.
The minister said prolonged regional conflicts and domestic political instability had discouraged long-term investment, but improved macroeconomic stability was now enabling Pakistan to attract international capital and technology.
He highlighted Pakistan’s engagement with US companies, including through a memorandum of understanding with US Strategic Metals, potential EXIM financing and participation in international critical-minerals initiatives.
At the same time, he said Pakistan did not view its engagement with the United States and China as a zero-sum choice.
Describing China as a ‘trusted partner’, he said the first phase of CPEC had brought about $25 billion in investment, helping address prolonged energy shortages while improving highways, fibre-optic connectivity and Gwadar port.
CPEC 2.0, he added, would focus on business-to-business cooperation through five corridors covering growth, livelihoods, innovation, green energy and regional connectivity, with priority areas including climate-resilient agriculture, industrial joint ventures, mines and minerals, technology and human-resource development.
Several billion dollars worth of joint-venture agreements had already been signed at recent business conferences, he added.
On artificial intelligence, Ahsan Iqbal said Pakistan was building on the foundations laid under Vision 2025, including centres for AI, cybersecurity, big data, robotics, GIS and genomics.
He said the new national AI policy covered the entire value chain, including data centres, curriculum reform, data sovereignty and sector-specific task forces for education, healthcare, industry and governance.
Pakistan’s available energy capacity, both renewable and conventional, could make the country an attractive destination for data-centre investment in the short and medium term, he said.
The minister, however, stressed that water remained a critical constraint, particularly as both AI infrastructure and mining could be water-intensive while climate change was already threatening food security.
He said Pakistan’s young population, geographic location and growing technological capabilities offered significant opportunities in IT, regional connectivity and international economic partnerships.
Ahsan Iqbal also emphasised greater cooperation with US universities under the Pakistan-US Knowledge Corridor and private-sector engagement with both American and Chinese companies.
He said Pakistan’s policy was aimed at stabilising the domestic economy, developing strategic infrastructure, particularly water storage, expanding economic diplomacy and maintaining complementary relations with major global powers.
On the Indus Waters Treaty, he said Pakistan would continue to strengthen its physical water-storage capacity while pursuing diplomatic avenues to prevent water from becoming a permanent instrument of coercion.
