Pakistan has shipped its first-ever consignment of rare earth and critical minerals to the United States, a move Islamabad is presenting as a milestone in strategic and economic cooperation. The $500 million memorandum of understanding with US Strategic Metals (USSM) covers exploration, processing, and refining of minerals including neodymium, praseodymium, copper, and antimony. The sample shipment, prepared under the supervision of the army-controlled Frontier Works Organisation, comes amid Pakistan’s worsening economic crisis, rising debt, and growing international isolation.
The controversial deal with US President Donald Trump, under which Munir exported high-value minerals such as neodymium and praseodymium, has ignited political outrage in Islamabad. PTI and other opposition parties have denounced it as a ‘secret deal’ that undermines transparency. While the Sharif government insists the agreement will enhance investment and strategic cooperation, critics question the absence of parliamentary scrutiny and disclosure."
The high-profile delivery culminated in a controversial Oval Office meeting where Army Chief Field Marshal Asim Munir personally handed a wooden box of mineral samples to Trump, with Prime Minister Shehbaz Sharif smiling in the background. As reported by Moneycontrol earlier, the move is less about trade and more about converting natural resources into diplomatic leverage, bypassing civilian institutions and projecting the Army as the real power centre in Islamabad.
Strategic gains or miscalculated risk?
Pakistan’s turn to rare earth diplomacy underscores the Army’s domination of foreign policy. Intelligence sources cited by CNN-News18 reveal that Munir’s direct involvement is a calculated effort to secure US investment, defence collaboration, and geopolitical backing for a regime heavily reliant on military power. By presenting rare earths directly in Washington, Islamabad sought to appeal to Trump’s preference for tangible, flashy deals rather than abstract diplomatic engagement.
Yet this strategy carries significant risks. The Army’s control over strategic resources and the bypassing of parliamentary oversight have triggered domestic backlash. Opposition parties, including PTI, accuse the government of signing secretive, lopsided deals that threaten sovereignty and could destabilise the political landscape further. Handing over minerals critical for defence technologies, semiconductors, and electric vehicles also raises questions about Pakistan’s long-term bargaining power and strategic autonomy.
Moreover, Pakistan is caught in a delicate balancing act, facing pressure not only from the US but also in managing its long-standing ties with its all-weather ally, China. While Islamabad seeks to court Trump’s goodwill through strategic deals, it cannot risk straining relations with Beijing, which holds a dominant position in the global rare earth minerals market. China’s control over key resources, including critical minerals like neodymium and praseodymium, makes it a pivotal player, leaving Pakistan to navigate a complex diplomatic and economic tightrope between Washington and Beijing.
Economic leverage or diplomatic propaganda?
Pakistan’s rare earth diplomacy highlights the country’s economic fragility. By presenting minerals as a bargaining chip, Islamabad hopes to attract US investment and secure foreign legitimacy, but analysts warn that the optics may serve Pakistan more than its partners. CNN-News18 notes that the Army’s Frontier Works Organisation controls key mining concessions, indicating that rare earths are being treated as national security assets rather than standard exports.
The move also signals to Gulf countries and global powers that Pakistan is seeking to diversify patrons beyond Beijing and Riyadh. However, the gamble may backfire if Washington treats the initiative as a symbolic gesture rather than a substantive economic partnership.
Should India worry?
For India, Pakistan’s rare earth diplomacy should be viewed as a sign of desperation rather than strength. While Islamabad seeks to showcase itself as a valuable partner to the US, the effort exposes the Army’s dominance, civilian marginalisation, and economic weakness. India, already working with Quad partners to secure critical minerals, can see Pakistan’s gambit as a tactical bluff rather than a credible challenge. Any attempt by Pakistan to leverage minerals for strategic advantage risks domestic and international blowback, further weakening its already fragile state apparatus.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!