Recent signing of an MOU between US Strategic Minerals (USSM) and Pakistan is an interesting development. Specifically, it is centered on critical minerals production. Consequently, this step has been welcomed with excitement over the future of US-Pakistan economic relations. The partnership is not that of extracting resources only. It also concerns belief, faith and foresight. Therefore, the MOU on critical minerals is a very good sign in terms of US-Pakistan economic relationship.
USSM delegation was received in Islamabad. They settled on the possibility to cooperate in the mining field. The visit is an indication of renewed optimism. Traditionally regarded as a purely importing country, Pakistan today is starting to be considered as a country of natural resources. The MOU demonstrates the fact that international companies perceive opportunities here. It is not just a deal. It is a move to more robust economic involvement.
Untapped Potential
Pakistan is endowed with large deposits of copper, lithium and rare earth minerals. These are minerals that are of essence to new technology. They are all used in batteries, electric vehicles and clean energy systems. Also, the mineral wealth in Pakistan has never been developed.
However, the picture can now shift with the US interest in investing. Pakistan is becoming more a frontier of untapped opportunity to US investors.
Strategic Value
Critical minerals are not commodities only. They belong to the global security and supply chain strategy. Countries are fighting to win access. A US company collaboration with Pakistan puts it in the strategic position. This demonstrates that minerals are not purely business. They also concern geopolitics and world strength. The two countries are becoming increasingly strategic partners through their mineral partnership
Trust is Building
The reputation of Pakistan as a reliable partner is also improving. The world supply chains have been dominated by a limited number of players over the decades.
Dependence was demonstrated to be risky with disruptions during the pandemic. The move by Pakistan into this field diversifies the world map. Pakistan is becoming a reliable partner in enhancing resilient world supply chains.
Pakistan is moving to green power and digital technologies. Both will need a consistent supply of essential minerals. The entry of Pakistan into this value chain renders it relevant in the world. To Pakistan, this is not trade only. It is concerned with presenting itself as a responsible stakeholder in the economics of the world.
Notably, investor confidence is also an indication of the signing of this MOU. It demonstrates the confidence in the strength of Pakistan. Against the economic odds, investors are making investments in long term growth.
These alliances not only generate employment but also introduce new technologies and increase exports. Increased business relations indicate a long term trust in the economic stability and innovativeness of Pakistan.
Also, Pakistan must be able to make innovation a core part of mineral development. Pakistan is on the way to replace old methods of mining with new environmentally friendly ones. US cooperation can introduce superior practices. This implies less environmental damage and increases economic payoffs.
And it is not about dollars and minerals alone. It is about building bridges. Such cooperation has symbolic significance in the era where world politics is typically characterized by division. It enhances human to human connections. It develops a story of cooperation rather than solitude.
A Long Road Ahead
This MOU is a start and not the finish. It will be work on implementation. Its discovery, construction and exploitation are time consuming. It is the signature of this document that is the spark. It proves that Pakistan can think big and find serious partners.
Pakistan is at a critical juncture. The world players are finally recognizing their mineral riches. The USSM MOU is a symbolic one and it is practical. It enhances economic relations and increases world confidence. The trick will be to make this possibility come true. Pakistan has an opportunity to influence its role in the world mineral economy with the help of vision, innovation and resilience.
Disclaimer: The views and opinions expressed in this article are exclusively those of the author and do not reflect the official stance, policies, or perspectives of the Platform.
