Golden Opportunity? Critical Minerals Trade May Strengthen US-Pakistan Ties
As global demand for critical minerals rises, the US sees Pakistan’s $6 trillion minerals sector as an opportunity to deepen bilateral trade and counterbalance Chinese dominance in the sector
[Islamabad] The United States reaffirmed its commitment to strengthening economic ties with Pakistan on Monday, with a top official expressing a keen interest in forging strategic partnerships in the critical minerals sector.
Critical minerals are the raw materials necessary for our most advanced technologies. President Trump has made it clear that securing diverse and reliable sources of these materials is a strategic priority. Pakistan’s vast mineral potential—if responsibly and transparently developed—can benefit both our countries.
While addressing the Pakistan Minerals Investment Forum in Islamabad on Monday, Eric Meyer, a senior official at the US State Department’s Bureau of South and Central Asian Affairs, highlighted the importance of the sector. “Critical minerals are the raw materials necessary for our most advanced technologies. President [Donald] Trump has made it clear that securing diverse and reliable sources of these materials is a strategic priority. Pakistan’s vast mineral potential—if responsibly and transparently developed—can benefit both our countries,” Meyer said, according to a statement issued by the US mission in Islamabad.
The two-day mineral forum highlighted Pakistan’s approximately $6 trillion mineral wealth, with the aim of drawing investment from the US, China, Saudi Arabia, and the EU. Meyer praised Pakistan for organizing the event and emphasized the importance of transparent and fair investment practices.
According to the statement, Meyer’s visit to Islamabad was meant to advance US interests in Pakistan’s critical minerals sector, expand opportunities for US businesses in Pakistan, deepen economic ties between the two countries, and underscore the vital importance of continued collaboration on counterterrorism.
While the visit primarily focused on mineral cooperation, Meyer also made note of broader economic developments in US-Pakistan ties. He highlighted the resumption of US soybean exports to Pakistan, with four shipments totaling over 260,000 tons arriving in recent weeks.
He also pointed to people-to-people connections, noting the strong educational and cultural ties between the two countries.
Pakistan is home to vast untapped mineral resources that hold significant economic potential, particularly in the provinces of Balochistan and Gilgit-Baltistan and parts of Khyber Pakhtunkhwa.
Among the most promising is the Reko Diq gold and copper project, located in the Chaghi district of Balochistan, which is considered one of the world’s largest undeveloped copper-gold deposits. Jointly managed by the government of Pakistan and the Canada-based Barrick Gold Corporation, the project is expected to generate billions of dollars in revenue over the coming decades and create thousands of jobs in the region.
Reko Diq alone is estimated to hold over 40 million ounces of gold and 50 billion pounds of copper. Pakistan also possesses substantial reserves of coal, salt, gypsum, chromite, iron ore, and gemstones.
The country’s strategic location and mineral wealth make it an attractive destination for foreign investment, particularly as global demand for critical minerals surges. But challenges remain, including security concerns, infrastructure gaps, and regulatory hurdles.
Recent efforts by the Pakistani government to reform mining laws and improve the investment climate—along with growing international interest, particularly from the United States and China—suggest a renewed push to unlock the sector’s full potential.
According to the state news agency Associated Press of Pakistan, around 2,000 participants attended the Pakistan Minerals Investment Forum. International delegates included heads of mining companies from Azerbaijan, Saudi Arabia, China, and South Africa, and representatives from the US State Department, US Exim Bank, and the Asian Development Bank. Officials from Denmark, Kenya, Finland, and the United Kingdom also attended.
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On the sidelines of the forum on Wednesday, the visiting US delegation met Pakistani Prime Minister Shehbaz Sharif. According to a media note from the prime minister’s office, Sharif invited American companies to explore investment opportunities in Pakistan’s mineral sector, highlighting its vast untapped potential and strategic value.
Sharif urged American firms to capitalize on the available opportunities for mutual benefit and reiterated Pakistan’s commitment to strengthening bilateral ties under President Trump’s administration. He further emphasized the need for deeper collaboration in trade, investment, and counterterrorism.
Addressing the forum, Sharif said that tapping into the country’s vast mineral wealth could reduce Pakistani reliance on global lenders like the International Monetary Fund. He urged a shift from raw material exports to value-added mineral processing to boost economic returns and job creation.
Sharif also stressed that future investment deals must include technology transfer to strengthen Pakistan’s industrial base.
At the forum, Pakistani Chief of Army Staff Gen. Asim Munir said that the country is fully prepared to position itself as a key player in the global mineral economy. He reaffirmed the army’s commitment to enhancing the security framework to safeguard the interests of investors and partners.
Munir said that Pakistan’s abundant mineral reserves, skilled workforce, and transparent policies offer significant potential to drive national development through the mineral sector.
According to a statement from the US State Department, US Secretary of State Marco Rubio spoke with Pakistani Foreign Minister Ishaq Dar by phone on Monday about various issues, including US interests in Pakistan’s mineral sector.
“The recent phone conversation between the US secretary of state and his Pakistani counterpart suggests that even in the absence of deep trust, diplomatic dialogue remains essential,” Noureen Akhtar, an Islamabad based senior policy consultant, told The Media Line.
She said that the current relationship between Pakistan and the US “is less about grand gestures and more about pragmatic engagement, with shared interests—like counterterrorism and trade—quietly shaping the conversation.”
US-Pakistan relations have long been marked by a mix of cooperation and caution—an enduring dynamic that has continued under President Trump’s return to office. While expectations for a major breakthrough remain low, signs of quiet diplomacy are beginning to surface.
“US-Pakistan relations have long been marked by a mix. of cooperation and caution—an enduring dynamic that has continued under President Trump’s return to office,” Akhtar explained. “While expectations for a major breakthrough remain low, signs of quiet diplomacy are beginning to surface.”
Akhtar pointed to recent praise from US officials over Pakistan’s role in the arrest of a high-profile Islamic State group commander as a rare positive note—one that was quickly offset by the imposition of new tariffs. That shift underscored the unpredictability of the relationship, she said.
“The visit of senior US officials to Islamabad and the presence of veteran Pakistani diplomat Tariq Fatemi in Washington signal a shared interest in maintaining strategic dialogue amid evolving regional dynamics,” she added, noting that the US is increasingly focused on Pakistan’s mining sector as part of its broader effort to secure alternative sources of critical minerals.
Muhammad Shahid Waheed, a scholar at the Institute of Business Administration Karachi and a faculty member at the prestigious Aga Khan University, told The Media Line that Pakistan stands at a pivotal moment in the global trade landscape.
“American investors could benefit greatly from Pakistan’s affordable labor force and expanding industrial capacity,” Waheed said.
He said that President Trump’s tariff-driven trade policy has opened doors for countries capable of offering cost-effective alternatives to the US market. With its well-established industrial base in textiles, apparel, and manufacturing, Pakistan is well-positioned to fill this gap.
Waheed stressed that in today’s world—marked by rising tariffs, economic polarization, and geopolitical flux—few nations have the chance to turn global uncertainty into opportunity. But Pakistan, he argued, is on the cusp of such a moment. As US markets face disruption and multinational firms reassess supply chains, Pakistan could briefly find itself in the spotlight.
If the US invests here, the impact could be transformational—driving job creation, reducing unemployment, and helping alleviate poverty.
He emphasized the potential in Pakistan’s underutilized mining sector. “If the US invests here, the impact could be transformational—driving job creation, reducing unemployment, and helping alleviate poverty,” he said.
Mobeen Jafar Mir, a research officer at the Center for International Strategic Studies in Islamabad, said that recent back-channel talks and high-level visits between Islamabad and Washington underscore a mutual interest in deepening economic cooperation, particularly through investment in Pakistan’s mining sector.
“Despite the United States’ strengthening ties with Delhi as part of its broader strategy to counter Beijing, Pakistan continues to be a key partner for the US on vital issues such as climate change, nuclear nonproliferation, and counterterrorism,” Mir said. He added that securing US investment and diversifying international trade would help promote sustainable economic growth in Pakistan.
Mir said recent diplomatic engagement between Pakistan and the US “represent promising steps toward economic collaboration” if not a clear policy shift.
“These early signs of cooperation could ultimately lead to a convergence of economic and strategic interests over time,” he said.
