There has been a lot of diplomatic activity between Pakistan and the United States in recent weeks regarding cooperation in the area of critical minerals. At least two U.S. government delegations have visited Pakistan in April to discuss proposals to enhance economic collaboration.
The first delegation was led by Eric Meyer, a senior official for the Bureau of Central and South Asian affairs, to advance U.S. interests in the critical minerals sector at an investment forum. During his discussions with the Pakistani officials, Meyer highlighted that “collaboration in mineral development with Pakistan is a core area of mutual interest.”
“President Trump has made it clear that securing diverse and reliable sources of these materials is a strategic priority,” he told Pakistani officials, per a U.S. embassy statement. “Pakistan’s vast mineral potential, if responsibly and transparently developed, can benefit both our countries.”
Another delegation comprising U.S. lawmakers arrived in Pakistan last week. The congressional delegation spent a week meeting with Pakistan’s civil-military leaders and visited different stakeholders to gauge the stability of the current regime.
It is important to note that this is the first congressional delegation to visit Pakistan in almost two years.
Additionally, a Pakistan-U.S. Caucus meeting is scheduled for April 30 in New York to discuss Pakistan’s overall political and governance situation.
Ahead of these visits, U.S. Secretary of State Marco Rubio had a telephone conversation with Pakistan’s Foreign Minister Ishaq Dar and “raised prospects for engagement on critical minerals and expressed interest in expanding commercial opportunities for the U.S.”
This increased engagement has raised many questions. It is unclear if this is just a temporary phase in the diplomacy between the two countries or if the engagement could lead to real change in how Pakistan and the U.S. work together.
Certainly, the significance of critical minerals has gained value in recent years due to their relevance for modern technologies. For instance, there is a growing demand for copper in the artificial intelligence (AI) sector. It’s estimated that “between 330,000 and 420,000 tons of copper” will be required to set up data centers by 2030. Pakistan is known to have significant deposits of copper. Reko Diq in Pakistan’s Balochistan province, for example, is said to have “one of the world’s largest copper-gold deposits, with estimated mineral resources of at least 54 billion pounds of copper and 41 million ounces of gold.” The Reqo Diq mining project is expected to start production in 2028.
Already, countries like China and the United States are seeking opportunities globally in the critical minerals sector to meet their technology and defense needs. In Africa, the U.S. is in talks to invest billions of dollars in mineral-rich Congo. Congo’s mineral market is currently dominated by Chinese companies and investors. Similarly, the U.S. and Ukraine have been exchanging proposals to make a deal regarding Kyiv’s critical minerals and resources as part of broader military cooperation.
Pakistan appears interested in participating in global critical minerals discussions to gain relevance in the sector and lure investors. According to sources, Pakistan has shared proposals with Washington regarding critical minerals cooperation. However, there has been no public disclosure of this information.
Moreover, the ongoing flurry of activity between the two countries is not limited to discussions about minerals.
It appears that security remains a key area of cooperation. A major counterterrorism dialogue is anticipated next month between the U.S. and Pakistan, during which both nations will likely explore strategies to address emerging militant threats from Afghanistan, including the Tehreek-e-Taliban Pakistan and Islamic State Khorasan Province.
A key topic they are likely to discuss is the $7 billion worth of U.S. military equipment left behind in Afghanistan after the 2021 withdrawal that is now arming militants in Pakistan. Pakistan’s role in regional security has been significant for Washington, and it is expected that the upcoming talks will shape the future nature of cooperation between the two countries.
Despite the increased attention from Washington on Pakistan’s critical minerals assets, there are challenges that Islamabad needs to confront in order to turn this opportunity into meaningful cooperation. Pakistan will have to improve security in Balochistan, where the minerals are located.
Moreover, the country should address numerous legislative loopholes to ensure that foreign investors find it easy to operate in Pakistan. Furthermore, there are issues of distrust regarding the federal and provincial control of resources in the country that will also need to be resolved.
If Pakistan can overcome these challenges, the prospects of U.S. companies investing in the country’s minerals sector could improve significantly.
It is too early for the international community to evaluate how Pakistan will proceed in developing its critical mineral resources. It is Pakistan’s responsibility to build trust through a comprehensive approach to tap the full potential of this sector.