WASHINGTON: The United States on Wednesday proposed a preferential trading arrangement for critical minerals to stabilize prices and reduce reliance on China. Pakistan has been briefed on the initiative but has so far approached it cautiously, seeking to maintain close ties with both Washington and Beijing.
US Vice President J.D. Vance outlined plans at the two-day meeting attended by more than 50 countries, emphasizing that erratic pricing in critical minerals had discouraged long-term investment. He proposed a mechanism including established reference prices for each stage of production, which would serve as a floor to maintain fair market value within an adjustable tariff system.
Vice President Vance also hinted at the formation of a trading bloc among allies and partners, stating that its goal was to prevent market manipulation that undermined domestic producers. Several countries had already signed on to the initiative, including India, whose Minister for External Affairs, S. Jaishankar, highlighted “the challenges of excessive concentration” in critical minerals.
Pakistan, which possesses substantial but largely untapped mineral reserves like copper and gold, emphasized its potential at the meeting while avoiding any public alignment with efforts to counter China’s dominance. Islamabad’s Federal Minister for Energy Ali Pervaiz Malik attended as a senior political delegation rather than a high-ranking official, described by officials as an effort to maintain a calibrated approach.
Pakistan is preparing to host its own international minerals conference in April, inviting both the United States and China to participate. The Pakistan Minerals Investment Forum (PMIF) 2026 aims to attract foreign investment and unlock what officials estimate could translate into $6-8 billion in annual mineral export potential.