The Trump administration's push to secure critical mineral supply chains is quietly reshaping economic ties with Pakistan, as American companies eye everything from small mines to the massive Reko Diq copper-gold project. A US Embassy official revealed that Washington is not only exploring takeover opportunities in smaller Pakistani mines but also considering significant investments in larger projects, particularly in copper and antimony—minerals vital for defense and advanced technologies. This development comes as Pakistan and the US resume bilateral trade negotiations, signaling a potential shift in the region's geopolitical and economic landscape. Main Developments During a background briefing with journalists, a US Embassy official detailed the scope of American interest in Pakistan's mineral wealth. The Trump administration has been actively focusing on critical mineral supply chains globally, with Pakistan as a key target, leveraging multilateral agencies, the US International Development Finance Corporation, and the Export-Import Bank of the United States. The official confirmed that the US Exim Bank has committed $1.25 billion to the Reko Diq copper-gold project in Balochistan, though financing terms are still being finalized. Parallel to these investment overtures, Pakistan's Finance Minister Muhammad Aurangzeb held a virtual meeting with US Trade Representative Jamieson Greer to review progress on bilateral trade negotiations. The Ministry of Finance reported that both sides noted significant advancements in talks on a proposed reciprocal trade framework and reaffirmed their commitment to concluding the agreement at the earliest. This diplomatic engagement underscores the intertwined nature of trade and investment in the bilateral relationship. Read also: Trade leaders silent as minister declares governance collapse The embassy official elaborated that US companies are working with Pakistani authorities to develop critical mineral mines, including trade operations to purchase offtakes from small mines for processing in the United States. Some products could also be supplied to supply chains in Germany, South Korea, and other allies. Pakistan possesses several of the roughly 60 critical minerals essential for aircraft manufacturing, semiconductors, and defense equipment, with significant antimony concentrations noted as a particular highlight. Background Pakistan's mineral sector currently contributes about 3% to the national GDP, but the Reko Diq project alone could add another 0.5%, according to the US official. However, the project's pace has been slower than originally planned. When asked if Reko Diq was on pause, the official clarified that it is moving forward, but financial institutions, including the International Finance Corporation, are still discussing financing. "The project is so large that it cannot be expected to move according to the original plan and not to change," he said. The US has been encouraging Pakistan to provide a level playing field for American companies and strengthen local institutions like the Geological Survey of Pakistan to conduct feasibility studies, which would help US firms identify investment opportunities. The official acknowledged that the Pakistani government is doing what it can to facilitate both US and other global firms, but stressed that investment cannot flow without removing red tape. A concrete example of progress is the export of a mineral consignment by US Strategic Metals, supplied by the Frontier Works Organisation, which is being processed in the US. Why It Matters This push is part of a broader US strategy to counter China's dominance in global critical minerals, which Washington believes stems from government subsidies, vertical integration, and lax regulations, in contrast to US underinvestment. The administration views critical minerals as foundational to the modern economy and state power, essential for advanced technologies in energy, military, and commercial sectors. For Pakistan, this represents a potential economic boost, but also a delicate balancing act between its long-term friendly relations with China and renewed momentum in US ties. When asked about US-China competition in Pakistan's mineral sector, the official downplayed the rivalry, stating that Pakistan is open to investment from around the world, including from Australia, Canada, and other countries. This approach, he noted, could also help train the local workforce. On security concerns in Balochistan, the official acknowledged that challenges are real, but emphasized the opportunities in highly prospective areas like Chitral for antimony operations and Waziristan for copper concentrations, with similar potential in Gilgit-Baltistan. What's Next The immediate next steps involve finalizing the Exim Bank's $1.25 billion financing for Reko Diq and continuing bilateral trade negotiations, with both sides aiming to conclude the reciprocal trade framework at the earliest. US com