US, Pakistan eye cooperation on critical minerals and energy

US Secretary of State Marco Rubio expressed Washington’s interest in deepening economic ties with Pakistan, particularly in the sectors of critical minerals and hydrocarbons, as relations between the two nations show signs of renewed momentum.

In a statement issued by the State Department to mark Pakistan’s Independence Day, Rubio said the US is looking forward to exploring new areas of economic cooperation, including critical minerals and hydrocarbons, and fostering dynamic business partnerships.

He also noted, “The United States deeply appreciates Pakistan’s engagement on counterterrorism and trade.”

The message comes just weeks after Washington and Islamabad announced a trade deal aimed at reducing tariffs and encouraging US investment in Pakistan. Pakistani officials have called the agreement a significant step toward revitalising economic collaboration.

Read: US secretary of state Marco Rubio wishes Pakistan on Independence Day

Pakistan’s Commerce Minister Jam Kamal has outlined plans to open up the country's vast mineral reserves to American businesses, with a focus on Balochistan, the resource-rich southwestern province. 

The minister said US firms would be offered joint venture opportunities with local companies, along with incentives such as lease grants to encourage participation in mining ventures.

Balochistan is home to Reko Diq, one of the world’s largest untapped copper and gold deposits, operated by Barrick Gold. The site is considered a strategic asset for both economic development and foreign investment.

The announcement reflects a warming of ties between Washington and Islamabad, which had been strained in recent years, particularly as the US pivoted toward closer relations with India, Pakistan’s longstanding rival, in a broader strategy to counter China.

Read: US hails diplomacy behind Pakistan–India truce, says it helped avert ‘potential catastrophe’

However, relations appear to be on the mend as President Donald Trump was credited by Pakistan for helping broker a ceasefire between Pakistan and India following heightened tensions in mid-2025.

While Pakistan welcomed Trump’s role, India reiterated its position that all bilateral issues should be resolved directly, without external mediation.

The latest round of US-Pakistan counterterrorism talks took place in Islamabad on Tuesday, signaling growing cooperation on security issues. The two nations have resumed high-level engagement in this area after a long lull.

The Balochistan Liberation Army (BLA), a separatist militant group, has been designated by the US as a foreign terrorist organisation, aligning with Pakistan’s domestic counterterrorism priorities.

Michael Kugelman, a South Asia analyst and contributor to Foreign Policy magazine, said: “The US-Pakistan counterterrorism dialogue joint statement is one of the most positive and effusive I’ve seen from these two countries on CT for quite a few years.”