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24x7Report > Blog > Finance > Can Critical Minerals Redefine Pakistan-US Relations?
Finance

Can Critical Minerals Redefine Pakistan-US Relations?

Last updated: 2025/02/10 at 5:53 PM
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Can Critical Minerals Redefine Pakistan-US Relations?
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Pakistan and the US, lengthy sure by a security-centric relationship, could also be on the cusp of a change as Islamabad explores proposals to draw the newly inaugurated Trump administration with stakes in its essential mineral reserves and different enterprise ventures.

The prospect gained traction when U.S. businessman Gentry Beach, believed to be near U.S. President Donald Trump, visited Pakistan earlier this month, promising billions in investments for mining and mineral tasks.

“America cares about Pakistan. And I imagine that collectively we may be very robust,” Seashore mentioned. “And we want Pakistan. You might be our entrance face on this complete area, essential,” he continued, expressing optimism for brilliant future bilateral ties and financial cooperation between the 2 nations.

“Pakistan has one thing that America wants, and America has one thing that Pakistan wants,” Seashore mentioned, referencing the nation’s mineral reserves. “That’s an exquisite state of affairs for each of us to be in.”

It’s too early to find out if Seashore’s view aligns with a coverage change within the Trump-led White Home. His go to comes amid widespread concern in Pakistan about Washington’s disinterest within the nation, following its withdrawal from Afghanistan and the geopolitical complexities surrounding the area.

The Pakistan-U.S. relationship has traditionally been dominated by safety cooperation, with restricted financial engagement. Bilateral commerce between the 2 nations stands at a modest $6 billion yearly, closely tilted in favor of Pakistan exports.

For Pakistan, elevated U.S. funding in its mineral sector might present a much-needed financial enhance, create jobs, and improve infrastructure improvement. Nevertheless, the success of this implausible pivot hinges on Pakistan overcoming important geopolitical and home challenges to inflame Washington’s curiosity in a convincing method.

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Pakistan’s mineral wealth is huge however underdeveloped. The Reko Diq mine in Balochistan, one of many world’s largest untapped copper-gold reserves, holds an estimated 5.9 billion tons of ore. Equally, northern areas like Gilgit-Baltistan and Khyber Pakhtunkhwa are believed to harbor lithium reserves, essential for renewable power applied sciences. The Thar coalfield in Sindh, with 175 billion tons of lignite, additional underscores Pakistan’s useful resource potential.

Nevertheless, Pakistan’s efforts to entice the US face robust geopolitical obstacles. As an illustration, India’s rising affect in Washington, significantly as a strategic accomplice within the Indo-Pacific, overshadows Pakistan’s outreach. The U.S. views India as a counterbalance to China, making Pakistan’s historic rivalry with India and its shut ties with Beijing a complicating issue.

The China-Pakistan Financial Hall (CPEC), a cornerstone of China’s Belt and Street Initiative (BRI), has additional strained Pakistan-U.S. relations. Washington perceives CPEC as a instrument for increasing Chinese language affect, elevating doubts about Pakistan’s potential to place itself as a impartial accomplice.

Moreover, the U.S. disengagement from Afghanistan has diminished Pakistan’s strategic relevance. As soon as a key ally within the warfare on terror, Pakistan now finds itself sidelined as Washington has seemingly shifted its focus to the Indo-Pacific.

Pakistan’s home panorama presents its personal set of challenges. Most of Pakistan’s essential mineral reserves are positioned in Balochistan, a area grappling with insurgency and mistrust of federal tasks. Balochistan’s safety points, coupled with a historical past of contract disputes, such because the Reko Diq worldwide arbitration case, may deter international traders. Corruption, bureaucratic inefficiencies, and insufficient infrastructure might additional erode confidence.

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To draw U.S. funding, Pakistan should show its worth as a dependable accomplice by providing clear insurance policies, guaranteeing safety ensures, and diversifying its international coverage to cut back over-reliance on China.

Whereas essential minerals and enterprise proposals supply a possible conduit to revitalize Pakistan-U.S. relations, they’re unlikely to overshadow the broader strategic issues that at present outline the bilateral dynamic. At greatest, the Trump administration is prone to interact incrementally, testing Pakistan’s capability to ship on its guarantees, reasonably than committing to transformative partnerships. Within the best-case state of affairs, Pakistan might emerge as a key participant in international provide chains, providing the U.S. an alternative choice to Chinese language dominance in essential minerals. Nevertheless, the highway forward is fraught with challenges, and the chance of a big shift in Pakistan-U.S. relations stays unsure.

For Pakistan, the remark from a U.S. businessman about investing in Pakistan presents a long-term play that calls for unprecedented political unity, financial reforms, and diplomatic recalibration. Success on Pakistan’s half would require addressing U.S. considerations about transparency, geopolitical alignment, and safety, whereas leveraging its mineral wealth to foster mutual financial advantages.

Islamabad’s guess on essential minerals is a daring transfer — one that might redefine its relationship with Washington, however provided that it navigates the advanced net of geopolitical and home obstacles with resolve and talent.

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