Pakistan Courts US with Rare Earths to Avoid Tariffs and Boost Investment

Pakistan’s Rare Earth Strategy to Avoid Tariffs

Pakistan is actively engaging the United States by showcasing its vast rare earth reserves to avoid tariffs up to 29%. The country emphasizes its untapped mineral wealth worth trillions, including copper, gold, lithium, and antimony—key materials for batteries and industry. Pakistan seeks to attract foreign investment amid a severe economic crisis by pitching these critical minerals alongside other incentives such as bitcoin mining potential and political support for the US administration.

This strategy focuses on the mineral-rich province of Balochistan, home to Barrick Mining’s Reko Diq copper-gold project and abundant lithium, chromite, coal, and rare earth deposits. Islamabad’s diplomats are negotiating trade and investment partnerships in Washington, hoping to secure access to the US market and align with American interests. This move may reduce Pakistan’s reliance on China and its massive Belt and Road investments.

The Role of Rare Earths in Pakistan’s Trade Diplomacy

Rare earths play a central role in Pakistan’s pitch to the US as strategic resources vital for modern technologies and defense. Pakistani officials propose commitments to buy US agricultural products while fostering mining sector partnerships. Meanwhile, China’s growing influence in Pakistan, especially in Balochistan, complicates the geopolitical dynamics. Pakistani-US trade talks could alter regional power balances, offering Pakistan a strategic alternative to Chinese dominance.

SuperMetalPrice Commentary:

Pakistan’s approach highlights rare earths as a geopolitical lever in global trade negotiations. By leveraging critical minerals, Pakistan attempts to reshape its economic future and diversify trade alliances beyond China. The country’s mineral wealth, if properly developed with US partnership, could drive long-term growth and influence in the rare earth supply chain. Investors should watch these developments closely, as emerging market shifts impact global commodity pricing and strategic material access.