Pakistan has proposed developing a port in the coastal town of Pasni on the Arabian Sea to the United States, positioning it as a key terminal for exporting the country's rich mineral resources. This offer, made by advisers to Pakistan's Army Chief Asim Munir, comes amid warming US-Pakistan ties following a recent ceasefire in India-Pakistan tensions and aims to attract American investment in mining and infrastructure. The proposal includes building a rail link to mineral-rich areas like Reko Diq, highlighting Pakistan's push to integrate into global supply chains for critical minerals amid rising global demand.
What is the core proposal Pakistan made to the US regarding the Pasni port?
Location and Setup: The proposal focuses on developing a terminal in Pasni, a small fishing town in Balochistan province on the Arabian Sea, which has a natural deep-water harbor suitable for large ships.
Purpose: It is pitched as a dedicated facility for exporting Pakistan's critical minerals to the US, connected by a new railway to inland mining sites like Reko Diq for efficient transport.
Funding and Management: Estimated at up to $1.2 billion, the project would involve a mix of Pakistani government funds and US-backed development finance, with American investors building and operating the terminal on a civilian basis.
Exclusion of Military Use: The plan explicitly rules out any US military presence, emphasizing economic cooperation to avoid regional tensions.
Why is Pakistan pushing this port offer now, and what is the background of US-Pakistan relations in this context?
Recent Warming Ties: Relations improved after US President Donald Trump's claimed role in mediating a ceasefire in May 2025 India-Pakistan conflicts, which Pakistan's leaders publicly praised, even nominating Trump for the Nobel Peace Prize.
Historical Alliance: Pakistan and the US have been allies since the 1950s, collaborating on issues like the Cold War and anti-terrorism, but ties cooled after the US withdrawal from Afghanistan in 2021; minerals are seen as a way to "rekindle a dormant friendship."
Economic Motivations: Pakistan faces financial challenges and seeks foreign investment to tap its $6 trillion mineral reserves, which could generate billions in revenue, create jobs, and enable technology transfer.
Global Context: The offer aligns with rising demand for critical minerals used in batteries, missiles, and electronics, especially as the US seeks alternatives to China-dominated supplies.
What are the key minerals involved, and why are they important?
Types of Minerals: The deal covers antimony (used in batteries, fire-retardants, and missiles), copper concentrates, and rare earth elements like neodymium and praseodymium (essential for magnets in electric vehicles and wind turbines).
Global Significance: Rare earth elements are vital for modern technology and defense; China controls over 80% of global supply, and its recent ban on antimony exports to the US has caused prices to soar, making Pakistan's reserves attractive.
Pakistan's Resources: Estimated at $6 trillion, these are concentrated in Balochistan (e.g., Reko Diq copper-gold mine developed by Canada's Barrick Mining) and Khyber-Pakhtunkhwa, but extraction is limited by insurgency and lack of infrastructure.
First Shipment Details: In late September 2025, Pakistan sent a small sample (under two tonnes) prepared by FWO to USSM, testing the logistics for larger exports.
How does the USSM-FWO MoU fit into this, and what are its phases?
MoU Overview: Signed on September 8, 2025, between US Strategic Metals (USSM) and Pakistan's Frontier Works Organisation (FWO), it outlines cooperation across the mineral value chain without direct government involvement.
Phase 1 (2025-2026): Focus on exporting available minerals like antimony and copper to generate quick revenue for Pakistan.
Phase 2 (2026-2028): Building processing plants and refineries in Pakistan, including technology transfer for separating and purifying rare earth elements.
Phase 3 (2028 Onward): Large-scale exploration, drilling in high-potential areas, and developing 5-10 mining projects to fully exploit reserves.
Investment: USSM plans to invest $500 million, positioning Pakistan in the global critical minerals supply chain for industrial growth and national security.
What is the strategic importance of Pasni port in regional geopolitics?
Proximity and Advantages: Pasni is 70 miles from Gwadar (China's key port under the China-Pakistan Economic Corridor) and 100 miles from Iran, offering the US better access to Central Asia and countering Chinese influence.
Counter to China: The blueprint notes concerns over Gwadar's potential dual-use (civilian and military) under China's Belt and Road Initiative, which Pakistan and China deny; Pasni could expand US trade and security options in the Arabian Sea.
Balochistan Context: The region faces insurgency from Baloch separatists opposing foreign projects, which could pose risks; however, it borders Afghanistan and Iran, making it a gateway for mineral trade.
Broader Implications: This could intensify US-China rivalry in South Asia, with Pakistan balancing ties between the two powers while seeking economic benefits.
From an Indian perspective, what are the potential concerns and impacts of this development?
Security Dynamics: India may view this as strengthening US-Pakistan military-economic alignment, especially after Trump's ceasefire claims (rejected by India), potentially altering the balance post the May 2025 hostilities.
Regional Rivalry: Closer US-Pakistan ties could counter India's influence in South Asia, particularly in trade routes and mineral access, amid ongoing border tensions.
Economic Angle: India, also rich in minerals, competes in global supply chains; this deal might divert US investments away from India, affecting bilateral economic relations.
Geopolitical Shift: It highlights Pakistan's pivot to the US to reduce dependence on China, but could complicate India's Quad alliances (with US, Japan, Australia) focused on countering China in the Indo-Pacific.
What criticisms and denials have emerged regarding the proposal?
Internal Opposition: Pakistan's PTI party called the deals "secretive and lopsided," comparing them to historical colonial concessions, and demanded transparency to avoid inflaming domestic volatility.
Official Denials: A senior Pakistani security official clarified that talks with US firms are exploratory, not official, and no plan exists to hand over Pasni's security; the army chief has no official advisers linking ideas to him.
US Response: A Trump administration official stated no discussions occurred on the proposal at the presidential level.
Risks: Concerns include angering China (Pakistan's key ally and investor in Gwadar) and challenges from Baloch insurgents opposing foreign control.
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