Islamabad – Pakistan has delivered its first batch of enriched rare earth elements and critical minerals to US Strategic Metals (USSM) in the United States, marking the operational launch of a $500 million partnership framework signed earlier this month. The development represents a new chapter in Pakistan–US strategic and economic cooperation.
The memorandum of understanding (MoU), signed between US Strategic Metals and Pakistan’s Frontier Works Organisation (FWO), aims to strengthen collaboration in the extraction and processing of critical minerals. The first shipment includes indigenously sourced and refined antimony, copper concentrate, and rare earth elements containing neodymium and praseodymium.
USSM Chief Executive Operation (CEO) Stacy W. Hastie hailed the milestone, said, “we see this as the first step in our exciting journey together with the Frontier Works Organisation of Pakistan, to provide critical minerals to the United States and bolster economic trade and friendship between our two countries.”
Expanding Economic Cooperation
Islamabad plans to hold an investor conference in Washington later this month to attract American investment in energy, mining, and technology sectors, confirmed Finance Minister Muhammad Aurangzeb.
“The sectors are very clear where we seek their investment and where we see a clear investment appetite,” Aurangzeb told Bloomberg in Islamabad. “With respect to the US, we’ve just kick-started that process.”
He added that progress followed a new trade deal with Washington that set a 19% tariff, which he said boosted Pakistan’s export competitiveness and helped the country recover from its recent economic crisis. “Every single industry in Pakistan has to have an export component because it’s the only way we’re going to get out of this boom-and-bust cycle,” he said.
Strategic and Trade Ties Recalibrating
Pakistan–US relations, long marked by alternating phases of cooperation and mistrust, are now witnessing cautious renewal. Washington’s 19% tariff for Pakistan, the lowest in the region, stands in contrast to the 50% punitive tariff imposed on India in August following US President Donald Trump’s criticism of New Delhi’s purchase of Russian oil.
The reset in bilateral ties became evident last week when Prime Minister Shehbaz Sharif and Army Chief General Asim Munir met Trump at the White House, where he praised both as “very great guys.” Islamabad credited Trump with mediating an end to a four-day conflict with India in May, a claim India denies. The Sharif government has since announced its intention to nominate Trump for the Nobel Peace Prize.
Economic Outlook Strengthens
Pakistan narrowly avoided default in 2023 through IMF support, stabilizing its economy under the $7 billion Extended Fund Facility (EFF). The government has now begun talks for the second EFF review and the first review of the Resilience and Sustainability Facility (RSF). Aurangzeb said the review process is “largely on track,” noting Pakistan’s timely repayment of a $500 million Eurobond due Tuesday.
Global rating agencies, S&P Global, Fitch, and Moody’s, have upgraded Pakistan’s outlook this year, citing improved fiscal discipline and revenue growth. Investor confidence has strengthened as well: Pakistan’s dollar bonds have yielded 22% returns this year, while the benchmark stock index has surged 44%, ranking among Asia’s best performers.
According to Bloomberg Economics, Pakistan’s GDP growth accelerated to 3.4% year-on-year in the second quarter, with official figures expected next week. However, the report cautioned that recent floods could slow recovery in the coming months.
