ISLAMABAD, PAKISTAN: In a major geopolitical development, the United States has sought Pakistan’s cooperation to offset China’s growing dominance over the global supply of critical minerals. The move is part of Washington’s broader strategy to diversify supply chains and reduce dependence on Beijing for rare earth elements vital to modern technology, defence, and renewable energy sectors.
According to diplomatic sources, discussions between the two sides have focused on enhancing cooperation in mineral exploration, extraction, and value addition. Pakistan, home to vast reserves of copper, lithium, and rare earth metals—particularly in Balochistan and Khyber Pakhtunkhwa—is seen as a key partner in Washington’s evolving economic and strategic realignment.
Islamabad has already initiated reforms to attract international investors and strengthen its mining sector’s infrastructure. A significant development in this regard is the signing of a $500 million memorandum of understanding (MoU) between Pakistan’s Frontier Works Organization and the US-based Strategic Metals Company, aimed at joint exploration and processing of critical minerals.
Experts believe the partnership could help Pakistan transition from exporting raw minerals to developing value-added industries, potentially boosting foreign investment, job creation, and export revenues. However, the collaboration has drawn attention from Beijing, given China’s long-standing strategic and economic influence in Pakistan under the China-Pakistan Economic Corridor (CPEC).
Analysts warn that Islamabad’s balancing act between its “iron brother” China and its growing engagement with the United States will require careful diplomacy. Yet, policymakers in Islamabad see this as an opportunity to leverage both relationships for national economic gain, while maintaining regional stability.
If executed effectively, the partnership could mark a turning point for Pakistan’s mining industry—turning untapped mineral wealth into a source of sustainable growth and strategic relevance on the global stage.
This story has been reported by PakTribune. All rights reserved.