PAKISTAN’S professed $8 trillion worth of untapped critical mineral reserves, especially copper, gold and rare earth elements, have sparked optimism about significant foreign direct investment.
On September 8, 2025, the United States announced a $500 million investment in Pakistan’s critical minerals sector. This investment, along with the potential for more from other foreign companies, strengthens Pakistan’s multi-sectoral engagement approach towards the United States.
Importantly, the US Department of Energy has defined critical minerals as essential in a variety of technologies related to advanced manufacturing (electric vehicles, wind turbines and batteries) and energy production. Therefore, the incumbent Trump Administration has made the mineral deals a key priority given the importance of critical mineral resources to American security and prosperity. The US Chargé d’Affaires Natalie Baker announced that various US companies are interested in the essential minerals and mining sector in Pakistan. The American companies had also expressed their interest in tapping Pakistan’s offshore oil reserves. More agreements between US companies and their local counterparts in the critical minerals and mining sector would lead to significant growth and development in the industry and further improve bilateral relations between Pakistan and the United States.
The Government of Pakistan has refurbished its mines and mineral policy to ease foreign and local mineral and metal investors in recent years. The National Minerals Harmonisation Framework (NMHF) 2025 announcement was a right step in the right direction for tapping the trillions of dollars’ worth of natural resources of Pakistan. According to the Geological Survey of Pakistan, the country is endowed with an outcrop area of 600,000 square Kilometers containing 92 known minerals, of which 52 are commercially mined. These include a diverse range of minerals such as coal, copper, gold, chromite, lead, zinc, antimony, titanium, rare earth elements, magnesium, mineral salt, etc. The United Nations has designated copper, lithium, nickel and cobalt as Critical Energy Transition Minerals, as their supply is key to meeting the goals of the Paris Agreement. Hence, the investor-friendly policy and varied range of minerals make Pakistan a treasure trove for the local and foreign investors.
The two-day investment forum—Pakistan Minerals Investment Forum 2025 (PMIF-25)— showcased Pakistan’s mineral potential on April 8-9, 2025. It was organized by the Oil and Gas Development Company Limited (OGDCL) in collaboration with the Special Investment Facilitation Council (SIFC), Ministry of Energy (Petroleum Division), Barrick, Pakistan Petroleum Limited, Government Holdings (Private) Limited, Pakistan Minerals Private Limited, Frontier Works Organisation, Mari Energies, and Reko Diq Mining Company at the Jinnah Convention Centre in Islamabad. The forum has catalyzed international attention in its resource potential. It was attended by over 2,000 participants, including more than 300 delegates from countries such as China, the United States, Saudi Arabia, Russia, Turkey, Kenya and Finland.
The PMIF-25 positive outcome was witnessed during the last week. The American metals company, the US Strategic Metals (USSM) and the Pakistani Frontier Works Organisation (FWO) signed the memorandum of understanding (MoU) in Islamabad on September 8, 2025. The USSM, based in the US State of Missouri, specialises in extracting critical metals from old lithium-ion batteries and mining cobalt, nickel and copper. The USSM’s mission statement is very revealing, i.e., ‘To help create a safe and clean energy future for our planet, we’re providing the innovation, resources and sustainable practices to recover and mine strategic metals for today’s and tomorrow’s renewables.’ This mission not only underscores the company’s commitment to sustainable practices but also highlights the potential environmental benefits of these investments.
The investment of American companies in Pakistan’s mining and mineral sector is a testament to the impressive and constructive efforts of the US Embassy in Islamabad and the Pakistan Foreign Office. These diplomatic entities have played a crucial role in fostering a conducive environment for such investments. On July 25, 2025, Pakistan’s Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar, and the US Secretary of State, Marco Rubio, held a meeting in Washington to enhance collaboration in trade and investment, including collaboration in the critical minerals sector. Subsequently, Islamabad finalized a vital trade deal with Washington, which cut tariffs on Pakistani products from 29 percent to 19 percent. Ms. Natalie Baker rightly opined that the signing of the MoU between the USSM and FWO is ‘yet another example of the strength of the US-Pakistan bilateral relationship that will benefit both countries.’
The minerals are needed in a variety of technologies related to advanced manufacturing and energy production. If mineral reserves are efficiently tapped, they serve as a major driver of economic transformation for Pakistan. The foreign investment in this sector had a positive impact on the associated industry, vocational training for and job market, leading to a decrease in unemployment and increase in GDP growth and economic stability of the country. Moreover, it improves Pakistan’s image in the international community and promotes economic and trade cooperation between Pakistan and Washington. Thus, the potential economic benefits of these investments are significant, with the creation of new jobs, the development of local industries and the enhancement of Pakistan’s economic standing on the global stage.
—The writer is Prof at the School of Politics and IR, Quaid-i-Azam University, Islamabad.
