PAKISTAN’S professed $8 trillion worth of untapped critical mineral reserves, especially copper, gold and rare earth elements, have sparked optimism about significant foreign direct investment.

On September 8, 2025, the United States announced a $500 million investment in Pakistan’s critical minerals sector. This investment, along with the potential for more from other foreign companies, strengthens Pakistan’s multi-sectoral engagement approach towards the United States.

Importantly, the US Department of Energy has defined critical minerals as essential in a variety of technologies related to advanced manufacturing (electric vehicles, wind turbines and batteries) and energy production. Therefore, the incumbent Trump Administration has made the mineral deals a key priority given the importance of critical mineral resources to American security and prosperity. The US Chargé d’Affaires Natalie Baker announced that various US companies are interested in the essential minerals and mining sector in Pakistan. The American companies had also expressed their interest in tapping Pakistan’s offshore oil reserves. More agreements between US companies and their local counterparts in the critical minerals and mining sector would lead to significant growth and development in the industry and further improve bilateral relations between Pakistan and the United States.

The Government of Pakistan has refurbished its mines and mineral policy to ease foreign and local mineral and metal........

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