Pakistan has taken a bold step on the global stage, shipping its first batch of rare earth minerals to the United States and offering the superpower access to its Arabian Sea port of Pasni—a move that could reshape regional alliances and the international critical minerals market. The shipment, which left Pakistan on October 7, 2025, included antimony, copper concentrate, neodymium, and praseodymium—elements essential for everything from batteries to advanced electronics and defense technologies, according to Dawn.
This milestone is the result of a September 2025 agreement between Pakistan and the US company US Strategic Metals (USSM), which has committed to invest approximately $500 million in mineral processing and development facilities in Pakistan. The shipment was prepared with the help of the Frontier Works Organisation (FWO), a key Pakistani engineering and logistics agency, underscoring the government’s commitment to integrating into the global supply chain of critical minerals.
"This shipment is a major milestone in the Pakistan-US strategic partnership," USSM said in a statement, highlighting the agreement’s blueprint for joint work across the mineral industry, from exploration to refinery construction. USSM CEO Stacy W. Hastie called the first shipment "an exciting start" to cooperation with FWO, adding that the partnership aims to boost trade and strengthen ties between the two nations.
Pakistan’s mineral wealth is staggering, with reserves estimated at around $6 trillion. Officials in Washington and Islamabad alike see the deal as a gateway to billions of dollars in potential revenue, job creation, and technology transfer—benefits that could be transformative for Pakistan’s struggling economy. But the implications of this new partnership reach far beyond economics.
At the heart of the deal is the Pasni port, a once-sleepy fishing town on the Arabian Sea now poised to become a strategic logistics and mineral export hub. Pakistan has offered the United States access to Pasni, located about 113 kilometers from China’s Gwadar port and 161 kilometers from the Pakistan-Iran border, to facilitate the export of these minerals. The port’s location is no accident: it sits at the crossroads of major regional rivalries involving China, India, Iran, and the United States, with implications for Afghanistan, Central Asia, and maritime security in the Indian Ocean.
The Pasni project is ambitious. The plan envisions linking the port to Balochistan’s mineral-rich interior—including the Reko Diq copper and gold mines—via a new railway network. The entire development is expected to cost $1.2 billion, to be financed through a mix of Pakistani federal funds and US-backed development finance, according to the Financial Times.
The US interest in Pasni is both economic and strategic. As NDTV reports, the port would serve as a gateway for exporting critical minerals—copper, antimony, neodymium—used in battery technology, missile production, and advanced electronics. The September 8, 2025, trial shipment to USSM, following a $500 million memorandum of understanding with Pakistan’s Military Engineering Corps, marked a new chapter in US-Pakistan economic engagement. USSM’s commercial director, Mike Hollomon, described the collaboration as an effort to "rekindle a dormant friendship" between Washington and Islamabad.
But not everyone is cheering. For China, Pasni’s development is a strategic blow. The port’s proximity to Gwadar—the flagship of Beijing’s $60 billion China-Pakistan Economic Corridor (CPEC)—threatens to undercut China’s long-term ambitions in the Arabian Sea. The US presence at Pasni would not only counterbalance Gwadar but could also reduce Beijing’s leverage over Pakistan’s infrastructure and supply chains. China has invested heavily in the region, pouring in personnel, technology, and capital, and has even lost workers to terrorist attacks in Balochistan. Now, Pakistan’s pivot to Washington is seen by some as a betrayal of Beijing’s trust.
Earlier, the US and Pakistan signed a mineral deal in Balochistan—a region where China already has substantial investments, including the Saindak Copper-Gold Mine and the Reko Diq project. Islamabad’s willingness to prioritize immediate financial incentives from Washington over long-term commitments to Beijing has not gone unnoticed. After China indicated it could not fund certain CPEC sections, Pakistan turned to the Asian Development Bank for support, further signaling a shift in allegiances.
This new alignment is not without risk. As NDTV’s opinion column points out, Pakistan has historically aligned with whichever power offers the most financial or military benefits—from being a US Cold War ally to joining China’s Belt and Road Initiative, and now swinging back toward Washington. While such balancing can bring short-term rewards, it also sows long-term instability and mistrust among partners.
The regional implications are profound. For India, a US presence at Pasni could complicate its strategic connectivity projects, such as the Chabahar port in Iran, just across the border. The US recently revoked sanctions waivers for Chabahar, signaling a shift in American support for India’s westward connectivity efforts. Meanwhile, a US foothold at Pasni could allow Washington to reassert influence in the region, institutionalize US-Pakistan defense engagement, and boost Pakistan’s strategic confidence vis-à-vis India.
Iran, too, is watching warily. Pasni’s location offers Washington a potential maritime platform to monitor or pressure Tehran’s coastal infrastructure and shipping lanes, enhancing US operational flexibility in any regional conflict. For Afghanistan, the development could mark a new era of US re-engagement, as reports suggest Washington is considering re-establishing access to the Bagram Air Base. A logistical node at Pasni would significantly improve America’s ability to project power across Afghanistan and the Persian Gulf.
Pakistan’s leaders have framed the Pasni initiative as "strategic diversification." Prime Minister Shehbaz Sharif and Army Chief General Asim Munir’s September 25, 2025, meeting with US President Donald Trump at the White House signaled a new phase in US-Pakistan geostrategic engagement. A photo from the meeting showed Munir presenting samples of rare earth minerals to Trump—a symbolic gesture of Pakistan’s new direction.
Yet, as the NDTV analysis concludes, alliances built on interest rather than trust seldom endure. For the US, Pasni offers both critical minerals and a strategic maritime presence near Iran, the Gulf, and China’s infrastructure. For Pakistan, it brings short-term relief and renewed American attention. For China, it’s a strategic nightmare—a symbol of betrayal that undermines years of investment and trust.
As Pakistan ships its first rare earth minerals to the US and opens its Arabian Sea port to a new partner, the world is watching closely. The ripple effects of this deal are just beginning to be felt, promising both opportunity and uncertainty for all players involved.
