Pakistan has marked a pivotal moment in its economic trajectory by shipping its inaugural consignment of rare earth minerals to the United States, signaling deeper integration into the global critical minerals supply chain amid escalating geopolitical tensions. The delivery, coordinated by the military-run Frontier Works Organisation (FWO) and dispatched to Missouri-based US Strategic Metals (USSM), includes enriched samples of antimony, copper concentrate, and high-value rare earth elements like neodymium and praseodymium—essential for defense, renewable energy, and high-tech manufacturing.
This follows two Memorandums of Understanding (MoUs) signed on September 8, 2025, in the presence of Prime Minister Shehbaz Sharif, Army Chief Field Marshal Asim Munir, and US officials, committing USSM to a $500 million investment in mineral processing, beneficiation, and refinery development across Pakistan. The partnership, hailed as a "strategic handshake," aims to unlock Pakistan's estimated $6 trillion untapped reserves—one of the world's largest—potentially generating billions in revenue, thousands of jobs, and advanced technology transfers, while helping the US diversify away from China's 80% dominance in rare earth processing.
USSM CEO Stacy W. Hastie celebrated the shipment as "a milestone in the Pakistan-US strategic partnership," emphasizing its role in fostering "economic trade and friendship" through a full value-chain collaboration, from exploration to refining facilities in Pakistan. The move aligns with Washington's aggressive push for supply chain resilience, bolstered by the Department of the Interior's August 2025 addition of six minerals—including copper and silver—to its critical list, and a $1 billion Department of Energy funding plan for mining and processing.
For Pakistan, reeling from $130 billion in external debt and chronic economic woes, the deal offers a lifeline: immediate exports of "readily available" resources like gold and tungsten could inject $1-2 billion annually, per analyst estimates from the Critical Minerals Forum. During a September 26 White House visit, Munir personally presented mineral samples to President Donald Trump, who expressed keen interest in Pakistan's vast Balochistan and Khyber Pakhtunkhwa deposits, further cementing bilateral ties strained by past Afghan-related frictions.
Yet, the agreement has unleashed a firestorm of domestic opposition, with the Imran Khan-led Pakistan Tehreek-e-Insaf (PTI) decrying it as a "reckless, lopsided, and secretive" pact that endangers national sovereignty. PTI Information Secretary Sheikh Waqqas Akram demanded parliamentary scrutiny and full disclosure, linking the shipment to a debunked Financial Times report alleging a US proposal for control over Pasni Port—dismissed by military sources as a mere "commercial idea," not policy.
Akram invoked historical caution, warning of echoes to Mughal Emperor Jahangir's 1615 grant of Surat trading rights to the British, which paved the way for colonial subjugation: "Such deals would further inflame the already volatile situation." PTI alleges the PPP-PML-N rift is a "diversionary tactic" to mask chronic issues like inflation and power shortages, vowing to reject any accord "at the expense of the people and the state's interests." Protests erupted in Lahore and Karachi on October 5, with PTI supporters chanting against "neo-colonialism," amplifying social media backlash where #SecretMineralDeal trended with over 500,000 posts.
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As the dust settles on this high-stakes venture, the partnership's success hinges on transparent implementation and equitable benefits, analysts say. While USSM eyes scaling to $1 billion in investments by 2027, experts like Zain Kazmi of Capital Strategies Group view the MoU as an "early-stage signal" to lure top-tier investors, potentially transforming Pakistan into a minerals powerhouse akin to Australia's model. However, PTI's agitation underscores broader anxieties in a nation grappling with political instability post-2024 elections, where Khan's imprisonment fuels anti-establishment fervor.
With global demand for rare earths projected to triple by 2030—driven by EVs and AI—the deal could redefine Pakistan-US relations, but only if Islamabad navigates domestic dissent without compromising its strategic autonomy.
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