Pakistan has dispatched its first-ever shipment of rare earth and critical minerals to the United States, marking what officials describe as a historic step in strengthening strategic and economic ties between Islamabad and Washington.
According to a report by Dawn, the shipment was sent under a recently signed memorandum of understanding (MoU) between Pakistan and US-based company US Strategic Metals (USSM).
What does the MoU help US-Pakistan ties?
Valued at approximately $500 million, the agreement seeks to develop exploration, processing, and refining facilities for critical minerals within Pakistan.
The inaugural shipment, prepared with assistance from the Frontier Works Organisation (FWO), includes copper concentrate, antimony, and rare earth elements such as neodymium and praseodymium, which are vital for modern technologies, including electric vehicles, defence systems, and semiconductors.
USSM hailed the delivery as “a milestone in the Pakistan-US strategic partnership,” emphasising that the MoU provides a roadmap for long-term cooperation across the entire mineral value chain.
The company noted that the collaboration could help diversify the global supply of critical minerals and reduce dependence on dominant producers.
How do the Rare Earths deposits aid Pakistan?
For Pakistan, the move represents an opportunity to unlock its estimated $6 trillion in untapped mineral resources and position itself as a key player in the global rare earth market.
Officials hope the partnership will attract foreign investment, generate employment, and promote technology transfer in the mining sector.
However, the initiative has sparked sharp criticism from the opposition Pakistan Tehreek-e-Insaf (PTI), which accuses the government of bypassing parliament and engaging in non-transparent dealings.
What’s the political fallout within Pakistan?
PTI Information Secretary Sheikh Waqqas Akram told Dawn that such “reckless, lopsided, and secretive agreements” could undermine public trust and worsen political instability.
He demanded that the government release full details of the MoU and allow parliamentary scrutiny before any large-scale extraction begins.
How did this MoU come about?
The rare earth shipment follows last month’s symbolic gesture in Washington, where Prime Minister Shehbaz Sharif and Army Chief General Asim Munir presented a wooden box containing mineral samples to US President Donald Trump during their White House visit.
Reports suggest that General Munir briefed Trump on Pakistan’s vast mineral potential, which the US President reportedly received with interest.
If implemented transparently, experts believe the deal could mark a turning point for Pakistan’s struggling economy, transforming its mineral wealth into a new avenue for strategic and industrial growth.