ISLAMABAD:
Pakistan and the United States signed two memoranda of understanding (MoUs) aimed at developing and processing critical minerals, including rare earth elements (REEs), in a major development seen as part of the recent reset in bilateral ties.
The MoUs were signed between US Strategic Metals (USSM) and the Frontier Works Organization (FWO) – Pakistan’s largest miner of critical minerals; and the Mota-Engil Group (MEG) and the National Logistics Corporation of Pakistan (NLCP).
Currently, a delegation comprising senior officials from the USSM and the MEG is visiting Pakistan to explore opportunities for expanding mining operations in Pakistan and to assess potential for value-addition in mineral resources and development of supporting infrastructure.
The delegation held a meeting with Prime Minister Shehbaz Sharif at the Prime Minister’s House, where Deputy Prime Minister and Foreign Minister Ishaq Dar, Chief of the Army Staff Field Marshal Syed Asim Munir, the petroleum minister and the commerce minister were also present.
During the meeting, the delegation expressed readiness to invest in establishing value-addition facilities within the country, enhancing mineral processing capacity, and developing large-scale infrastructure projects linked to the mining sector.
The MoUs were signed at the Prime Minister House in the presence of Acting Deputy Chief of Mission at the US Embassy in Islamabad, Zach Harkenrider, who accompanied a delegation. US Chargé d’Affaires Natalie Bakertermed the MoUs an example of the strength of the US-Pakistan bilateral relationship.
According to a statement issued by the US Embassy, the USSM, based in St Louis, Missouri, “specialises in producing and recycling critical minerals that the US Department of Energy has identified as essential for advanced manufacturing and energy production.”
The MoU signed between the USSM and the FWO establishes a framework for collaboration across a range of critical minerals essential for the defence, aerospace, and technology industries, said a press release issued here.
The partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements, officials said. The first phase of this deal is envisaged at approximately $500 million of investments into Pakistan’s critical minerals sector.
This cooperation lays the foundation for scaling up towards the establishment of a USSM proprietary, highly flexible poly-metallic refinery in Pakistan. The refinery will produce intermediate and finished products dedicated to meeting the rapidly growing demand of the US market.
The next steps include formation of dedicated teams to explore full potential of Pakistan’s vast resource base, identifying critical minerals for immediate export, and building an anchor position for a long-term partnership in exploration, extraction, and processing.
Importantly, the cooperation will prioritise sustainability, profitability, and environmental responsibility to ensure benefits for the peoples of both nations. “Both parties will also explore innovative financing and digital solutions such as tokenisation of critical minerals, enabling global investors to participate in Pakistan’s mineral wealth and further accelerating transparency, liquidity, and value creation.”
The MoU between the NLCP and the EGP – a global leader in engineering and construction – aimed at building long-term partnerships that leverage the EGP’s global know-how, while creating value locally through job creation, technology transfer, and sustainable development.
Officials from both sides said that the signing of the MoUs marked a milestone in Pakistan’s efforts to attract global investment in the mining and logistics sectors. The MoUs also strengthened the bilateral relationship, while unlocking new opportunities for sustainable growth, tech transfer, and job creation.
“[The MoU are] another example of the strength of the US-Pakistan bilateral relationship that will benefit both countries,” US Chargé d’Affaires Natalie Baker said. She added that the Trump administration has prioritised such agreements, given the importance of critical mineral resources for American security and prosperity.
The agreement comes at a time when Islamabad and Washington are seeking to recalibrate ties after years of mistrust. A key factor driving this engagement is Pakistan’s untapped mineral wealth, which the government hopes to develop with foreign investment. Analysts point out that the involvement of the FWO, an arm of the Pakistan Army, underlines the military’s central role in resource development.
The signing follows Army Chief Field Marshal Asim Munir’s meeting with US President Donald Trump in June, which many viewed as a breakthrough in reviving strategic dialogue. Both sides had agreed then to expand cooperation in trade, investment, and security, with critical minerals identified as a priority area.
Officials say Monday’s MoUs signing could pave the way for more US companies to enter Pakistan’s mining and energy sectors, injecting much-needed investment at a time when the country is seeking stablising the economy.
Pakistan and the US relations have often been seen as transnational and primarily in the past have remained security driven. Islamabad for decades has pushed for diversifying relations with Washington beyond security and Afghanistan.
