US to explore cooperation with Pakistan on critical minerals, hydrocarbons

Washington and Islamabad signed a trade deal last month, which Pakistan said would result in lower tariffs and increased investment.

U.S. Secretary of State Marco Rubio meets Egypt's Foreign Minister Badr Abdelatty (not pictured) at the State Department in Washington, D.C., U.S., July 30, 2025. / REUTERS/Kent Nishimura

Secretary of State Marco Rubio said Washington looked forward to exploring cooperation with Pakistan on critical minerals and hydrocarbons, with his comments coming in a statement issued by the State Department on Pakistan's Independence Day, Aug. 14.

Why it's important

Washington and Islamabad hailed a trade deal last month, which Pakistan said would result in lower tariffs and increased investment.

Pakistan's Commerce Minister Jam Kamal has said Islamabad will offer U.S. businesses opportunities to invest in mining projects primarily in the southwestern Balochistan province through joint ventures with local companies, providing concessions such as lease grants.

The province is home to key mining projects, including Reko Diq, run by mining firm Barrick Gold and believed to be one of the world's largest gold and copper mines.

Key quotes

"We look forward to exploring new areas of economic cooperation, including critical minerals and hydrocarbons, and fostering dynamic business partnerships," Rubio said late on Aug 13.

"The United States deeply appreciates Pakistan's engagement on counterterrorism and trade."

Context

Before President Donald Trump's administration, Islamabad's relationship with Washington had cooled in recent years, as the U.S. drew closer to Pakistan's traditional adversary India to counter China's rise, among other factors.

Washington also resented Islamabad over Afghanistan, especially under former President Joe Biden's administration, which oversaw a chaotic withdrawal from Afghanistan and the takeover of the country by the Taliban insurgency that Washington accused Islamabad of backing. Pakistan denied the charge.

In recent months, Washington's ties with Islamabad have improved. Trump took credit for a ceasefire between India and Pakistan after the Asian neighbors engaged in hostilities in May following an April attack in India-administered Kashmir.

Pakistan praised Trump while India maintained that New Delhi and Islamabad should resolve their issues directly without outside involvement.

Counter-terrorism talks

The U.S. and Pakistan held the latest round of counterterrorism talks in Islamabad on Aug. 12. Washington has designated separatist militant group Balochistan Liberation Army as a "foreign terrorist organization."

"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," Michael Kugelman, a Washington-based South Asia analyst and writer for Foreign Policy magazine, said.

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