US Explores Cooperation with Pakistan on Critical Minerals and Hydrocarbons

Washington: US Secretary of State Marco Rubio announced that Washington is looking to explore cooperation with Pakistan in the fields of critical minerals and hydrocarbons, according to a statement released by the US State Department marking Pakistan’s Independence Day.

Key Developments

• Critical Minerals: These resources—used in everything from electric vehicle batteries to semiconductors—are a focal point of potential US-Pakistan collaboration.

• Recent Trade Deal: Both nations praised a recent trade agreement expected to lower tariffs and boost investment.

• Investment Opportunities: Pakistan’s Commerce Minister Jam Kamal stated that Islamabad will offer US companies opportunities to invest in mining projects in southwestern Balochistan, primarily through joint ventures with local firms, along with incentives such as lease grants.

Major Projects in Balochistan

The region hosts significant mining ventures, including the Reko Diq project, operated by Canada’s Barrick Gold, believed to be one of the world’s largest gold and copper deposits.

US-Pakistan Economic & Security Ties

Rubio emphasized:

“We look forward to exploring new areas of economic cooperation, including critical minerals and hydrocarbons, and strengthening dynamic trade partnerships.”
He also acknowledged Pakistan’s role in counterterrorism and trade.

US Pushes for Domestic Critical Minerals Supply

In a related move, the US Energy Department announced a $1 billion funding proposal to accelerate the growth of America’s critical minerals and raw materials sector, reducing reliance on foreign suppliers like China.

Energy Secretary Chris Wright stated:

“For far too long, the US has depended on foreign sources for the essential materials needed for modern life and national security.”

This initiative aligns with an executive order by former President Donald Trump to maximize energy development.

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Why This Matters

• Strategic Shift: The US is diversifying its critical mineral supply chains amid rising competition with China.

• Economic Opportunity: Pakistan’s mineral-rich Balochistan could attract major US investments.

• Security & Trade: Strengthening ties with Pakistan could enhance regional stability and trade dynamics.

Key Improvements:
✅ Clearer Structure – Separates economic, geopolitical, and investment angles.
✅ Strategic Context – Explains why critical minerals matter in US-China competition.
✅ Direct Quotes – Adds authority and engagement.
✅ Broader Implications – Links Pakistan’s mining potential to global supply chains.

 

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