Pakistan Signs Metal Deal With US, PM Shehbaz Sharif And Field Marshal Munir Present

Last Updated:September 08, 2025, 23:52 IST

One of the pacts was signed between the Frontier Works Organization – known to be a front for the Pakistani Army – and the United States Strategic Metals

Pakistan PM Shehbaz Sharif and army chief Field Marshal Asim Munir were present for the signing ceremony, pointing to the military nature of the metal deal. (Image: News18)

In a significant deal that could be called as one between the Pakistani Army and the Americans, the country’s largest mining firm signed an agreement with the United States Strategic Metals on Monday.

Pakistan Prime Minister Shehbaz Sharif and army chief Field Marshal Asim Munir were present for the signing ceremony, pointing to the military nature of the metal deal. One of the pacts was signed between the Frontier Works Organization (FWO) – known to be an army front – and the United States Strategic Metals (USSM).

A high-level delegation from the United States met Sharif as it is visiting Pakistan to explore opportunities in mining and assessing mineral resources. The delegation has agreed to bring investment into the country’s mining sector and infrastructure with an initial tranche of $500 million for immediate release.

TWO AGREEMENTS SIGNED

Two agreements were signed between the governments focusing on the development and processing of critical minerals, including rare earth elements (REE).

The American delegation, which met Sharif at the Prime Minister’s House, comprised renowned global companies in the mining and infrastructure sector, including USSM and Mota-Engil. It held discussions with deputy prime minister and foreign minister Ishaq Dar, Field Marshal Munir among others.

During its visit, the delegation was briefed on Pakistan’s extensive mineral reserves, such as copper, gold, and rare earth elements. Expressing their readiness to invest, the visiting companies discussed establishing value-addition facilities, enhancing mineral processing capacity, and developing large-scale infrastructure projects linked to the mining sector.

WHAT IS THE FWO PACT?

The Frontier Works Organization (FWO), which is Pakistan’s largest miner of critical minerals, signed a landmark agreement with USSM.

The agreement sets a framework for collaboration across essential minerals for defence, aerospace, and technology industries. The partnership will commence immediately, with the export of minerals like antimony, copper, gold, tungsten, and rare earth elements from Pakistan.

The collaboration aims to scale up towards establishing a highly flexible poly-metallic refinery in Pakistan, producing intermediate and finished products for the US market. The initial phase involves approximately $500 million of investments in Pakistan’s critical minerals sector.

This agreement strengthens bilateral ties between Pakistan and the US, unlocking new opportunities for sustainable growth, technology transfer, and job creation.

The next steps for the agreement include forming teams to explore Pakistan’s vast resource base, identifying critical minerals for immediate export, and building a long-term partnership in exploration, extraction, and processing. The cooperation will prioritise sustainability, profitability, and environmental responsibility, ensuring benefits for both nations.

Additionally, both sides will explore innovative financing and digital solutions, such as tokenisation of critical minerals, enabling global investors to take part in Pakistan’s mineral wealth and enhancing transparency, liquidity, and value creation across the sector.

WHAT IS THE OTHER PACT?

The Logistics Corporation of Pakistan signed an agreement with Mota-Engil Group, which is a global leader in engineering and construction and is actively seeking new opportunities to expand its footprint across West Asia.

The current survey in Pakistan aims at identifying priority markets where Mota-Engil can align with government visions and private sector initiatives, building long-term partnerships that leverage its global expertise while creating local value through job creation, technology transfer, and sustainable development.

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