From Aid To Assets: US-Pakistan In A Strategic Mineral Age

2025-10-23 02:01:15

(MENAFN- Asia Times) For decades, the alliance between the United States and Pakistan revolved around security cooperation and development aid.

However, in recent years, this alliance has undergone a crucial transformation-moving from dependency to focused strategic collaboration in economic sectors such as energy, mining and technology. Both countries, it seems, are eager to redefine their engagement in line with emerging global priorities and national interests.

Last month, US President Donald Trump expressed interest in enhancing collaboration with Pakistan on critical minerals, calling it a“strategic priority” that could benefit both countries. The announcement came even before China's latest restrictions on rare earths exports, the latest salvo in the superpowers' trade war.

Washington's recalibration of trade and tariff policies haven't hurt Pakistan as much as others. Pakistan is now enjoying a favorable 19% tariff on imported goods-the lowest among South Asian nations and far below the punitive 50% tariffs currently imposed on its neighbor and rival, India.

Pakistan's untapped potential

Despite its abundant mineral reserves, the mining sector currently contributes only 3.2% to Pakistan's GDP and a mere 0.1% to global exports. Islamabad is now laser-focused on unlocking this largely untapped potential.

Pakistan is home to one of the world's largest porphyry copper-gold deposits, with the Reko Diq site in southwestern Balochistan alone estimated to contain about 5.9 billion tons of ore.

Barrick Gold, which holds a 50% share in the Reko Diq project, describes it as one of the biggest undeveloped copper-gold assets globally. The project's development is expected to inject much-needed confidence and revenue into the economy, potentially catalyzing regional industrial growth.

MENAFN23102025000159011032ID1110235897

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.