Pakistan and US Explore Cooperation on Rare Earths, Islamabad Highlights Mining Potential
Assalamu alaikum - Pakistan and the United States met recently to talk about working together on critical minerals, as Islamabad says its mining sector could be a game-changer for shifting the country toward export-led growth.
The discussion involved Finance Minister Muhammad Aurangzeb and Robert Louis Strayer II, head of the US Critical Minerals Forum, and US Chargé d’Affaires Natalie Baker also attended. The two countries, which signed a trade agreement in July to deepen economic ties, have been looking at collaboration on rare earths and other important metals used in electronics, defense, and renewable technology.
According to a finance ministry statement, the talks covered ways to cooperate on mining and minerals, strengthen supply-chain security, and promote responsible and sustainable investment in Pakistan’s critical minerals sector.
Aurangzeb said the mineral and mining industry could mark a turning point for Pakistan’s economy. He described it as a path to move away from consumption-led cycles toward exports, and said a solid minerals policy could help ease balance-of-payments pressures and reduce future dependence on multilateral support.
He also stressed that reforms are rooted in fiscal discipline and building investor confidence. “Our priority is sound fiscal management - creating the discipline so capital comes in, stays invested and is protected by good policies,” he said, adding that this is already showing positive signs with improved sentiment and feedback from international rating bodies.
The US delegation explained that the Critical Minerals Forum aims to support secure and transparent supply chains for American industry and focuses on niche metals like copper and antimony. Strayer praised Pakistan’s science and engineering talent as a competitive advantage that could help make the country a hub for mineral development.
Aurangzeb invited the Forum to present a detailed proposal for partnership, which Pakistan will review with the goal of encouraging responsible investment that benefits both sides.
These talks come as Pakistan steps up efforts to draw foreign investment into its mining sector. Earlier this month, Prime Minister Shehbaz Sharif opened upgraded Geoscience Advanced Research Laboratories in Islamabad to boost mineral research capabilities.
Mining and minerals are becoming priority areas as the government tries to use natural resources to lower reliance on external financing and support sustainable economic growth.
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