In a world racing for energy transition, Pakistan’s new deal with the United States on critical minerals has sparked widespread attention. From lithium to rare earth elements, these minerals are the backbone of electric vehicles, clean energy systems, and modern technology.
For Pakistan, a country struggling with economic instability, this agreement could mark the beginning of a strategic shift — one that connects its vast mineral potential with global clean energy markets.
Critical minerals are natural elements essential for high-tech manufacturing, renewable energy, and defense industries.
They include:
These resources are crucial for building EV batteries, solar panels, and wind turbines, making them the new “oil” of the modern era.
In late 2025, the United States and Pakistan signed a strategic cooperation framework focusing on the exploration, extraction, and export of critical minerals. The agreement, announced during a bilateral meeting in Islamabad, aims to bring U.S. investment, technology, and geological expertise into Pakistan’s underdeveloped mining sector.
According to government sources, the partnership will cover:
The deal also aligns with Washington’s broader strategy to diversify supply chains away from China, which currently dominates the global rare-earth market.
The U.S. is actively seeking new and reliable sources for critical minerals due to global supply chain vulnerabilities. Pakistan’s geological zones — especially in Balochistan and the north — are known to contain vast untapped reserves of lithium, copper, and cobalt.
Some notable sites include:
For Washington, engaging Pakistan means securing access to these resources while strengthening diplomatic ties in South Asia.
This agreement could be a turning point for Pakistan’s struggling economy. Experts estimate that the country’s untapped mineral wealth is worth over $6 trillion — yet most of it remains unexplored or underutilized.
Potential benefits include:
If executed transparently, this deal could transform Pakistan from a raw-material exporter into a global player in green supply chains.
Despite optimism, the road ahead isn’t smooth. Pakistan faces several hurdles:
Experts warn that without proper oversight and local participation, the deal could fall into the same trap as previous failed projects like Saindak and Reko Diq (early phases).
The deal also has a strategic geopolitical dimension. With China’s growing influence through the China-Pakistan Economic Corridor (CPEC), Pakistan’s engagement with the U.S. in critical minerals signals a balancing act.
It suggests that Islamabad wants to diversify partnerships and avoid over-dependence on Beijing.
Analysts describe this as Pakistan’s pivot toward economic multipolarity, where cooperation with both global giants could yield maximum benefits.
The U.S.-Pakistan minerals deal also emphasizes sustainable mining.
To avoid the mistakes of the past, the framework reportedly includes:
This approach aligns with the Paris Climate Goals and Pakistan’s own National Minerals Policy 2023, ensuring long-term ecological balance alongside economic gain.
Pakistan’s agreement comes as many nations strike similar partnerships:
| Country | Partner | Focus Area | Year |
|---|---|---|---|
| Chile | U.S. | Lithium supply | 2024 |
| Congo | U.S. | Cobalt & Copper | 2023 |
| Indonesia | Australia | Nickel | 2024 |
| Pakistan | U.S. | Multiple minerals | 2025 |
This comparison highlights that Pakistan is entering the global minerals race — potentially becoming South Asia’s new mining hub if managed properly.
The deal has sparked mixed reactions within Pakistan.
If Pakistan can ensure:
Then the U.S. minerals deal could reshape Pakistan’s global image — from a debt-trapped nation to an emerging resource power in the clean energy era.
The Pakistan–U.S. Critical Minerals Deal is more than a trade agreement — it’s a symbol of hope.
With responsible governance, innovation, and international cooperation, Pakistan can unlock its hidden potential and take its rightful place in the global clean energy supply chain.Call to Action:
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1. What are critical minerals?
Critical minerals are essential raw materials used in batteries, renewable energy, and high-tech industries — including lithium, copper, and rare earth elements.
2. Why is the U.S. interested in Pakistan’s minerals?
The U.S. wants to diversify its critical mineral sources and reduce dependency on China by partnering with resource-rich nations like Pakistan.
3. Which areas in Pakistan are rich in critical minerals?
Balochistan, Gilgit-Baltistan, and Sindh have large reserves of lithium, copper, and other valuable minerals.
4. How will this deal benefit Pakistan’s economy?
It could bring in foreign investment, create jobs, increase exports, and modernize Pakistan’s mining technology.
5. Are there environmental concerns related to this deal?
Yes, but both nations have pledged to follow sustainable mining practices and ensure minimal environmental damage.