Pakistan and the United States are deepening their economic and strategic engagement through a new rare earth minerals export deal that marks a significant shift in bilateral cooperation.

The partnership aims to fast-track Pakistan’s integration into the global critical minerals supply chain, a domain increasingly vital for industrial growth, clean energy advancements, and national security.

According to Dawn, the agreement stems from a Memorandum of Understanding (MoU) signed in September between Pakistan and US Strategic Metals (USSM), an American company specialising in critical mineral extraction and processing.

The firm has already dispatched its first consignment of mineral samples to the United States, signalling the operational start of the collaboration. This inaugural shipment, coordinated with Pakistan’s Frontier Works Organisation (FWO), includes antimony, copper concentrate, and rare earth elements such as neodymium and praseodymium—materials crucial for high-tech manufacturing and defence applications.

USSM has announced plans to invest around USD 500 million in Pakistan to develop mineral processing and refining facilities, part of a long-term roadmap covering exploration, extraction, processing, and value addition within the country. USSM CEO Stacy W. Hastie described the initiative as “a milestone” that will expand trade and bolster bilateral relations.

The project could give Pakistan a strategic foothold in the global critical minerals market, potentially generating billions in export revenue, fostering technology transfer, and creating employment opportunities in a resource-rich but underdeveloped sector.

Pakistan’s mineral reserves are estimated to be worth nearly USD 6 trillion, encompassing vast untapped deposits of copper, gold, and rare earth elements that could transform the country’s industrial landscape if efficiently harnessed.

For the United States, the collaboration offers an opportunity to diversify supply chains and reduce dependency on major mineral suppliers, particularly China, which currently dominates the global rare earth market. The deal thus holds geostrategic weight, aligning with Washington’s broader policy of securing reliable sources of critical minerals for high-tech and defence industries.

The partnership, however, has drawn sharp criticism from Pakistan Tehreek-e-Insaf (PTI), the principal opposition party. PTI Information Secretary Sheikh Waqqas Akram termed the deal a “secret agreement” and demanded transparency from the government. He urged authorities to release the full terms of the MoU and ensure that any arrangement serves the national interest.

Akram further linked the minerals agreement to a recent Financial Times report alleging that Pakistan might offer Pasni Port to the United States for commercial operations. Cautioning that such steps could worsen domestic instability, he remarked that PTI “would never accept agreements struck at the expense of the people and the state’s interests.”

In response, military sources have dismissed the port-related claims as misleading, stating that the proposal mentioned in media reports was merely a commercial idea and not an element of formal government or military policy. Officials reiterated that the minerals partnership aims purely at economic cooperation and industrial development.

Drawing on historical precedent, Akram warned the government against repeating what he described as the “strategic missteps” of Mughal Emperor Jahangir, who granted British traders access to Surat in 1615, ultimately paving the way for colonial control. He urged full parliamentary oversight and public disclosure of all foreign agreements involving Pakistan’s natural resources.

Meanwhile, political frictions between the Pakistan Peoples Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N)—both allies in the current coalition—have intensified. PTI alleges that their public disputes form part of a “well-planned strategy” to divert citizens’ attention from economic crises and governance challenges, including the opaque handling of major foreign investment deals.

The rare earth minerals agreement underscores a new dimension in US–Pakistan relations, blending economic incentives with strategic imperatives. While the initiative may unlock substantial growth potential for Pakistan’s resource sector, domestic political opposition and transparency concerns could shape the trajectory of its implementation in the months ahead.

Based On ANI Report