
A US-backed push to tap Pakistan’s vast mineral reserves is facing mounting uncertainty as a surge in insurgent violence in Balochistan threatens to derail a key strategic bet aimed at countering China, according to a report by The New York Times.
The effort, which gathered momentum last year under former U.S. President Donald Trump, was framed as a high-value economic and geopolitical play. In September, Pakistan Army chief Asim Munir presented Trump with a box of gemstones at the White House, underscoring the scale of potential mining deals in Pakistan.
That outreach helped unlock a planned $1.3 billion U.S. investment in Balochistan, home to some of the world’s largest untapped copper and gold deposits. But the region’s worsening security landscape is now casting doubt over those ambitions.
The separatist Baloch Liberation Army (BLA), which is seeking independence for the province, has intensified attacks in recent months. In one of the largest coordinated assaults in years, hundreds of militants targeted multiple locations in January, killing dozens and exposing gaps in Pakistan’s security apparatus.
Several attacks have struck routes linked to Reko Diq, seen as the flagship project of the U.S.-Pakistan mining partnership. The site, partly owned by Barrick Gold, has already seen development timelines pushed back amid security concerns.
The insurgency has also evolved in character, drawing support from educated local youth amid allegations of enforced disappearances and heavy-handed military tactics. The report said such grievances are fuelling resistance to foreign-backed projects in the region.
01 May 2026 - Vol 04 | Issue 69
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Despite Washington designating the BLA as a terrorist organisation, the group has continued to carry out high-impact attacks, at times using weapons left behind after the U.S. withdrawal from Afghanistan in 2021.
For both Washington and Islamabad, the violence underscores a growing risk: that economic ambitions in Balochistan may remain hostage to an insurgency neither side has been able to contain.
(With inputs from ANI)