Pakistan, US sign MoU to boost cooperation in critical minerals

Pakistan and the United States (US) have signed a memorandum of understanding (MoU) to strengthen cooperation in the critical minerals sector, marking a step toward deeper economic and strategic engagement between the two countries.

The MoU was signed between US Strategic Metals (USSM) and Pakistan’s Frontier Works Organisation (FWO) at Prime Minister House on Monday, according to a statement from the US embassy.

“Embassy Islamabad Acting Deputy Chief of Mission Zach Harkenrider accompanied a delegation led by US Strategic Metals to sign a memorandum of understanding with Pakistan’s Frontier Works Organisation at Prime Minister House today.

“Speaking about the MOU signing, Chargé d’Affaires Natalie Baker said, “This signing is yet another example of the strength of the US-Pakistan bilateral relationship that will benefit both countries,” the embassy said in its press release.

USSM, based in the US state of Missouri, is focused on producing and recycling critical minerals, which the US Department of Energy has defined as essential in a variety of technologies related to advanced manufacturing and energy production.

Speaking about the importance of such bilateral agreements, CDA Baker added, “The Trump administration has made the forging of such deals a key priority given the importance of critical mineral resources to American security and prosperity. We look forward to seeing future agreements between US companies and their counterparts in the critical minerals and mining sector in Pakistan“.

Last month, Secretary of State Marco Rubio said Washington looked forward to exploring cooperation with Pakistan on critical minerals and hydrocarbons, with his comments coming in a statement issued by the State Department on Pakistan’s Independence Day.

The development came after Washington and Islamabad had hailed a trade deal, which Pakistan said would result in lower tariffs and increased investment.

According to Pakistan’s Commerce Minister Jam Kamal, Islamabad will offer US businesses opportunities to invest in mining projects primarily in the southwestern Balochistan province through joint ventures with local companies, providing concessions such as lease grants.

The province is home to key mining projects, including Reko Diq, run by mining firm Barrick Gold and believed to be one of the world’s largest gold and copper mines.

In recent months, Washington’s ties with Islamabad have significantly improved. Trump took credit for a ceasefire between India and Pakistan after the Asian neighbors engaged in hostilities in May following an April attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK).