Pakistan has landed a game-changing $500 million investment deal in its mining sector, marking a significant step forward for the country’s ambitions to become a global supplier of critical minerals. The twin agreements, signed on September 8, 2025, at the Prime Minister’s House in Islamabad, unite Pakistan with Missouri-based United States Strategic Metals (USSM) and Portugal’s Mota-Engil Group. The deals are expected to not only boost Pakistan’s mineral exports but also deepen the country’s economic and diplomatic ties with the United States, according to multiple reports from the Prime Minister’s Office and Times Now News.
The landmark signing ceremony was attended by Prime Minister Shehbaz Sharif, Deputy Prime Minister Ishaq Dar, Chief of Army Staff Field Marshal Asim Munir, and senior ministers, underscoring the high stakes and strategic importance of the agreements. The US delegation, led by Chargé d’Affaires Natalie Baker, highlighted the significance of the partnership for both countries. "This is yet another example of the strength of the US-Pakistan bilateral relationship that will benefit both countries," the US Embassy in Islamabad stated, as quoted by Times Now News.
At the heart of the deal is an ambitious plan to develop and process Pakistan’s vast reserves of critical minerals, including rare earth elements (REEs), copper, gold, antimony, and tungsten. The first agreement, a memorandum of understanding between the Frontier Works Organisation (FWO)—a major state-owned engineering and construction firm—and USSM, focuses on the export of minerals and the establishment of a poly-metallic refinery within Pakistan. USSM, known for recycling lithium-ion batteries and extracting metals like cobalt, nickel, and copper, will bring its technological expertise to the table, while the FWO will leverage its local know-how and infrastructure.
The initial phase will see the export of existing stockpiles of antimony, copper, gold, tungsten, and REEs, with the refinery’s construction running in parallel. This refinery is designed to process raw minerals for supply to the US market, a move that aligns with Washington’s broader push to secure alternative sources of critical minerals amid rising competition with China. As the US Embassy in Islamabad emphasized, critical minerals are "vital to advanced manufacturing and energy security."
Pakistan’s mineral wealth is no secret—government estimates claim reserves worth trillions of dollars, especially in the resource-rich but restive province of Balochistan. The region, however, is not without its challenges. Security risks and separatist opposition have long complicated foreign investment. In a telling example of these risks, earlier in 2025, the US designated the Balochistan National Army as a terrorist group, highlighting the geopolitical hurdles tied to mining in the area. Still, significant mineral deposits are also found in Sindh, Punjab, and Khyber Pakhtunkhwa, offering a broader canvas for development.
Prime Minister Shehbaz Sharif, in meetings with delegations from both USSM and Mota-Engil Group, underscored the partnership’s potential to "enhance value addition and expand mineral processing capacity." According to the Prime Minister’s Office, the cooperation is expected to generate jobs, enable technology transfer, and promote sustainable mining practices. Dedicated teams will be tasked with identifying priority minerals for export, scaling up exploration, and exploring innovative financing solutions—such as the tokenisation of minerals to attract global investors.
The second agreement, signed between Pakistan’s National Logistics Corporation (NLC) and Mota-Engil Group, focuses on engineering and infrastructure support for mining and logistics. Mota-Engil, a global leader in construction and engineering, aims to align with Pakistan’s infrastructure development agenda, create local jobs, and expand its footprint in West Asia. The collaboration is expected to streamline the logistics chain for mineral exports, further boosting the sector’s efficiency and global competitiveness.
This $500 million investment is not an isolated event. It follows a recent US-Pakistan trade agreement and a series of tariff reductions, which Islamabad has promoted as a gateway to attract American capital into the country’s mineral and oil reserves. According to the Associated Press, senior US officials in April 2025 underscored their strategic interest in Pakistan’s mineral resources, calling them "essential for both economic growth and security." The deals also come at a time when international players such as Canada’s Barrick Gold—already a 50% stakeholder in the massive Reko Diq gold and copper mine—are deepening their presence in Pakistan’s mining sector.
For the United States, the partnership with Pakistan is part of a broader effort to secure supply chains for critical minerals, essential for advanced manufacturing, the global energy transition, and defense technology. By investing in Pakistan’s mining sector, American firms are seeking alternatives to the China-dominated rare earth markets, a strategic move that could have far-reaching implications for global industry and geopolitics.
But what about the local impact? Officials in Islamabad are optimistic. The agreements are expected to create thousands of jobs, both directly in mining and indirectly through supporting industries such as logistics, engineering, and services. Technology transfer from USSM and Mota-Engil could give Pakistan’s mining sector a much-needed boost in efficiency, safety, and environmental sustainability. The government is also exploring innovative financing solutions, including the use of blockchain-based tokenisation, to attract a broader pool of global investors and ensure transparency in mineral transactions.
Chargé d’Affaires Natalie Baker summed up the mood at the signing ceremony, saying, "Critical minerals are vital to advanced manufacturing and energy security. We expect more agreements between American firms and Pakistani counterparts in the near future." Her comments reflect growing optimism that the US-Pakistan relationship is entering a new phase, one marked by economic cooperation, shared strategic interests, and mutual benefit.
Still, challenges remain. The security situation in Balochistan and other mineral-rich areas could complicate the rollout of these projects. Pakistan’s government, aware of these risks, is working closely with military and security agencies to ensure the safety of foreign investors and local workers alike. At the same time, Islamabad is keen to ensure that the benefits of mineral development are broadly shared, particularly in regions that have historically seen little economic uplift from resource extraction.
As the world’s demand for critical minerals continues to surge, Pakistan’s new deals with USSM and Mota-Engil Group could mark the start of a new era for the country’s mining sector. With international investment, advanced technology, and a focus on sustainable development, Pakistan is positioning itself as a key player in the global race for resources—one that could reshape not only its own economy, but the balance of supply chains worldwide.
With the ink barely dry on these landmark agreements, all eyes are now on Islamabad, Washington, and the rugged hills of Balochistan, where the next chapter of this high-stakes mineral saga is set to unfold.
