Islamabad — In a major step toward deepening economic and strategic ties, Pakistan and the United States have signed two memoranda of understanding (MoUs) focused on the development and processing of critical minerals, including rare earth elements (REEs). The agreements were signed between US Strategic Metals (USSM) and the Frontier Works Organization (FWO), and Mota-Engil Group (MEG) and the National Logistics Corporation of Pakistan (NLCP).
A senior delegation from USSM and MEG is currently in Pakistan to explore opportunities for expanding mining operations, evaluating value-addition potential in minerals, and planning supporting infrastructure. The delegation met Prime Minister Shehbaz Sharif at the PM House, with Deputy Prime Minister Ishaq Dar, Army Chief Field Marshal Syed Asim Munir, the Petroleum Minister, and Commerce Minister also present.
Officials said the delegation is ready to invest in domestic facilities for value addition, boost mineral processing capacity, and undertake large-scale infrastructure projects related to mining. Acting Deputy Chief of Mission at the US Embassy, Zach Harkenrider, was present at the signing, while US Chargé d’Affaires Natalie Baker called the MoUs a reflection of the “strong US-Pakistan bilateral relationship.”
USSM, headquartered in St. Louis, Missouri, specializes in producing and recycling minerals considered essential for advanced manufacturing and energy production. The FWO-USSM agreement establishes a framework for collaboration on minerals vital to defense, aerospace, and technology industries.
The partnership will begin with the export of readily available minerals such as antimony, copper, gold, tungsten, and rare earth elements, with the first phase envisaged at around $500 million in investments. Plans are also in place to establish a poly-metallic refinery in Pakistan to produce intermediate and finished products for the US market.
Future steps include forming dedicated teams to assess Pakistan’s vast mineral reserves, identify resources for immediate export, and develop a long-term strategy for exploration, extraction, and processing. Both sides stressed sustainability, environmental responsibility, and profitability, while exploring innovative financing approaches, including the tokenization of critical minerals, to attract global investors and boost transparency and liquidity.
The NLCP-MEG MoU aims to leverage international engineering expertise while creating local value through technology transfer, job creation, and sustainable development. Officials said the agreements mark a milestone in Pakistan’s efforts to attract foreign investment, strengthen bilateral ties, and open new avenues for economic growth.
Analysts noted that FWO’s involvement underlines the military’s pivotal role in resource development. The MoUs follow earlier high-level discussions between Army Chief Asim Munir and US President Donald Trump, which focused on expanding trade, investment, and security cooperation, with critical minerals prioritized.
Experts believe these agreements could encourage more US companies to enter Pakistan’s mining and energy sectors, providing vital investment at a time when Islamabad is seeking to stabilize its economy and diversify foreign partnerships beyond traditional security-driven ties.
