In a move that has set off ripples across South Asia and beyond, Pakistan has shipped its first-ever consignment of rare earth and critical minerals to the United States, marking what officials in Islamabad are hailing as a new era in economic and strategic cooperation. The shipment, delivered in early October 2025, follows a $500 million memorandum of understanding signed between Pakistan’s powerful military-linked Frontier Works Organisation (FWO) and Missouri-based US Strategic Metals (USSM) on September 8, 2025. The deal, rolled out in three ambitious phases, is already drawing both praise and fierce criticism at home and abroad.
According to The Economic Times, the agreement’s first phase is focused on the immediate export of minerals—antimony, copper concentrates, and rare earth elements like neodymium and praseodymium—to US markets through 2026. The second phase, stretching from 2026 to 2028, envisions the construction of processing plants and refineries in Pakistan, with an emphasis on technology transfer for rare earth element (REE) separation and purification. The final phase, planned for 2028 and beyond, aims for large-scale exploration and development, including drilling in high-potential REE belts and launching up to ten mining projects.
The significance of this pact is not lost on either side. In a statement distributed via PR Newswire and reported by The Times of India, Pakistan’s Prime Minister Shehbaz Sharif declared, “Today, Pakistan steps forward as a credible and trusted partner in building secure and diversified supply chains for the future of our two nations.” Stacy W. Hastie, CEO of USSM, echoed the sentiment: “We see this as the first step in our exciting journey together with the Frontier Works Organisation of Pakistan, to provide critical minerals to the United States and bolster economic trade and friendship between our two countries.”
The optics of the deal have been dramatic. Just days before the shipment, Pakistan’s hybrid military-civilian leadership presented a display case of mineral samples to US President Donald Trump in the White House’s Oval Office. Army Chief Field Marshal Asim Munir personally handed over a wooden box of samples, with Prime Minister Sharif looking on. The gesture was unmistakably symbolic—an overture not just to the US, but also to other global players watching the shifting alliances in the region.
But behind the grand gestures and press releases, questions swirl about the actual value and feasibility of the deal. As The Times of India notes, neodymium and praseodymium—the rare earths highlighted in the shipment—are almost never found as pure metals in nature. They exist as compounds within minerals and require years, if not decades, of sophisticated processing and refining to extract in usable form. Even the United States, with its advanced industrial base, is still working to establish a "mine-to-magnet" supply chain that would free it from dependence on China, which currently maintains a stranglehold on the global rare earths market.
Indeed, the timing and scope of Pakistan’s move are as much about geopolitics as they are about economics. According to Financial Times, Pakistan has offered the US access to a proposed port in Pasni, Balochistan—just 70 miles from the China-backed Gwadar port and 100 miles from the Iran-Pakistan border. The plan is to turn Pasni into a commercial export hub for critical minerals, connected by rail to the mineral-rich interior, including the lucrative Reko Diq mine. Officials have emphasized that the initiative is purely commercial, with no intention of hosting a US military base.
This overture is part of a broader Pakistani strategy to woo the Trump administration. Other efforts include collaboration with a Trump-backed cryptocurrency venture, cooperation against the Afghanistan-based ISIS-K, endorsement of Trump’s Gaza peace plan, and the high-profile mineral shipment itself. The port project, which could cost around $1.2 billion and be funded through a mix of Pakistani federal investment and US-backed finance, is still in the proposal stage and faces significant hurdles—especially security challenges in Balochistan and the broader Arabian Sea region.
Domestically, the deal has ignited a political firestorm. The opposition Pakistan Tehreek-e-Insaf (PTI) party has vocally denounced what it calls “secret deals” with the US. PTI Information Secretary Sheikh Waqqas Akram demanded full disclosure from the government, arguing that bypassing parliamentary scrutiny undermines transparency and sovereignty. Critics warn that the arrangement, orchestrated largely by the military, threatens to further marginalize civilian institutions and could destabilize the political landscape. As reported by Moneycontrol, “The deal has sparked political outrage in Pakistan, with opposition parties like PTI denouncing it as a 'secret deal' lacking parliamentary scrutiny.”
The economic rationale is clear—Pakistan is in the grip of a worsening debt crisis and growing international isolation. By leveraging its estimated $6 trillion in natural resources, Islamabad hopes to attract much-needed foreign investment and gain strategic legitimacy. Yet, as Moneycontrol and CNN-News18 point out, the real power behind the deal is the Army’s Frontier Works Organisation, which controls key mining concessions and treats rare earths as national security assets. The move signals to the world that Pakistan is seeking to diversify its international patrons beyond Beijing and Riyadh, but it also risks alienating China, whose dominance of the rare earths market gives it significant leverage over both Islamabad and Washington.
The stakes are high for all parties involved. For the US, the partnership represents a strategic safeguard—an attempt to build resilience and independence from China in critical supply chains for defense, energy, and high-tech sectors. For Pakistan, it is a high-wire act: balancing the allure of US investment and diplomatic support against the risk of antagonizing China and further inflaming domestic political tensions.
Not everyone is convinced the gamble will pay off. Indian officials, watching the developments closely, see Pakistan’s rare earth diplomacy as a sign of desperation rather than strength. India, which is working with Quad partners to secure its own critical minerals supply, views the move as more of a tactical bluff than a credible challenge. Any attempt by Pakistan to leverage minerals for strategic advantage, they warn, could backfire by exposing the country’s economic fragility and deepening its reliance on military rule.
As the dust settles on this high-profile mineral shipment, one thing is clear: Pakistan’s rare earth gambit is about far more than rocks and metals. It is a calculated bid for economic survival, diplomatic relevance, and a seat at the table in a rapidly shifting geopolitical landscape. Whether it succeeds in securing lasting gains—or simply adds to the country’s mounting risks—remains to be seen.
