Pakistan, U.S. Firm Strike Deal on Critical Minerals

by Maryam Tariq
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Pakistan, U.S. Firm Strike Deal on Critical Minerals

Pakistan has entered into a new partnership with Missouri-based U.S. Strategic Metals (USSM), aiming to tap into the country’s untapped mineral resources while strengthening energy and industrial supply chains on both sides.

The agreement, signed at the Prime Minister’s House in Islamabad with Pakistan’s Frontier Works Organization (FWO), covers cooperation in mining, production, and recycling of critical minerals — materials essential for everything from renewable energy systems to defense technology.

A Strategic Move for Both Economies

The deal is seen as a win for Pakistan’s mining sector, which has long been underdeveloped despite the country’s resource potential. By working with a U.S. company that specializes in processing and recycling these minerals, Pakistan hopes to attract foreign investment and position itself as a reliable supplier in global markets.

For the United States, the partnership aligns with broader efforts to diversify sources of critical minerals, reducing reliance on a handful of countries that currently dominate the supply chain. As demand grows for technologies like electric vehicles, advanced batteries, and clean energy systems, securing stable access to these resources has become a national priority.

Diplomatic and Economic Signals

The signing ceremony was attended by senior U.S. diplomats, who emphasized that the initiative reflects a broader deepening of U.S.-Pakistan ties. Chargé d’Affaires Natalie Baker described the agreement as mutually beneficial, pointing to its potential impact on energy security and industrial development in both nations.

Global Supply Chain Context

Analysts note that the timing of the deal matters. With major economies racing to secure future supplies of critical minerals, Pakistan’s entry into this space could give it an important role in international supply chains. The collaboration may also help Islamabad leverage its mineral wealth for long-term economic growth, rather than relying solely on traditional exports.

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