Pakistan is set to receive a landmark foreign investment of around $500 million in its critical minerals sector under a newly signed agreement with United States Strategic Metals (USSM), the Prime Minister’s Office confirmed on Monday.
The announcement followed the signing of two major Memoranda of Understanding (MoUs) at the Prime Minister’s House during the visit of a high-level US delegation. The agreements, involving USSM and global mining group Mota-Engil, are seen as a significant milestone in Pakistan’s efforts to attract international investors to its mining and infrastructure industries.
Under the deal, Pakistan’s Frontier Works Organisation (FWO) inked a groundbreaking MoU with USSM, a Missouri-based leader in processing, recycling, and mining of critical minerals. The partnership will focus on the development and processing of rare earth elements (REEs), copper, gold, tungsten, and antimony—resources vital for defence, aerospace, and high-tech manufacturing.
The agreement outlines immediate exports of key minerals while also paving the way for USSM to establish its poly-metallic refinery in Pakistan. This facility will produce intermediate and finished mineral products tailored to the growing demand of the US market.
Prime Minister Shehbaz Sharif, joined by Deputy PM Ishaq Dar, Chief of Army Staff Field Marshal Asim Munir, and senior ministers, witnessed the signing ceremony. The delegation also met with top government and military officials to review Pakistan’s mineral wealth and discuss future exploration opportunities.
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According to the PM Office, the cooperation will unlock fresh opportunities for technology transfer, job creation, and sustainable growth, with a strong focus on environmental responsibility. Future plans include forming dedicated teams to identify new mineral resources, scaling up exploration projects, and introducing innovative financing solutions such as tokenisation of minerals to attract global investors.
Alongside the minerals deal, the National Logistics Corporation (NLC) signed an MoU with Mota-Engil Group to explore long-term partnerships in construction and engineering. The global firm expressed interest in aligning with Pakistan’s infrastructure goals, creating local jobs, and expanding its footprint in West Asia through sustainable practices.
US Chargé d’Affaires Natalie Baker hailed the agreements as a step forward in strengthening US-Pakistan relations. She stressed that such cooperation would benefit both countries and underscored Washington’s priority on securing critical minerals for economic and energy security.
In recent months, ties between Washington and Islamabad have improved, particularly after US President Donald Trump’s intervention in the Pakistan-India conflict led to a ceasefire. Pakistan also recently secured a tariff reduction deal with the US, cutting reciprocal duties from 29% to 19%.
Eric Meyer, a senior bureau official at the US State Department, also highlighted Pakistan’s potential in the sector, noting that the country’s mineral resources could deliver significant economic benefits for both sides.
