Key Takeaways
- US companies explore smaller mines and larger projects in Pakistan.
- Reko Diq copper-gold project moving forward, though slower than expected.
- Finance minister and US trade representative review progress on bilateral trade talks.
US firms are increasingly looking to Pakistan for critical mineral supplies, as part of a broader push by the Trump administration to secure global supply chains. The focus is on both smaller mines and larger projects such as copper and antimony.
At a background briefing, a US Embassy official stated that the administration has been working through multilateral agencies, the US International Development Finance Corporation, and the Export-Import Bank of the United States to explore investment opportunities in Pakistan’s mineral sector.
The Reko Diq copper-gold project in Balochistan is one such area of interest. The US Exim Bank has committed $1.25 billion for this project, though final financing terms are still being negotiated.
Pakistan-US discussions on bilateral trade took place during a virtual meeting between Finance Minister Muhammad Aurangzeb and US Trade Representative Jamieson Greer. They noted significant progress in negotiations for a reciprocal trade framework and reaffirmed their commitment to concluding the agreement as soon as possible.
The official highlighted that Pakistan possesses many critical minerals, including large antimony concentrations, which are essential for various industries such as aircraft manufacturing, semiconductors, and defence equipment. These minerals could also be supplied by US firms to other supply chains in countries like Germany and South Korea.
Pakistan’s mineral sector currently contributes about 3% to the national GDP, with Reko Diq alone potentially adding another 0.5%. The Trump administration is focused on ensuring stronger supply chains for national defence and industry, encouraging American companies to engage with Pakistani authorities and companies.
While some US companies are already involved in developing critical mineral mines, the official avoided discussing specific details, stating that announcements would be made by the companies themselves as agreements materialize.
Despite progress, the Reko Diq project is moving forward slower than originally planned. Financial institutions such as the International Finance Corporation and others are currently discussing financing terms.
