Pakistan and Turkey to Develop Offshore Oil, Gas and other Minerals in Pakistan’s waters


Newly discovered offshore oil and gas deposits in Pakistan’s territorial seas could be brought to surface by Pakistan and Turkey.

Source: OilPrice.com
https://oilprice.com/Energy/Crude-Oil/Turkey-Pakistan-To-Explore-Wo...

The oil and gas discovery could yield additional benefits. Modern Diplomacy notes that Pakistan's marine areas are rich in natural resources including minerals such as cobalt, nickel and rare earth elements. The idea is to leverage its "blue water economy".

"The potential here goes beyond electricity, encompassing businesses such as fishing, marine biotechnology, and even ecotourism. A coordinated effort to expand these industries might give Pakistan a variety of revenue streams and employment generation, therefore strengthening its economy," the publication stated.

While Pakistan may not have the technological capabilities for deep-sea mining, there is a growing global interest in this area, with some companies exploring the potential for mining polymetallic nodules that contain valuable metals.

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Newly discovered offshore oil and gas deposits in Pakistan's territorial seas could be brought to surface by Pakistan and Turkey.

The two countries this week signed an agreement at the 2025 Pakistan Minerals Investment Forum in Islamabad to jointly bid on 40 offshore blocks. A bidding round for the granting of exploration licenses for the blocks, located in the Makran and Indus basins, was announced by the Pakistan government in February.

According to News.AZ, Pakistan's Mari Energies Limited, Oil and Gas Development Company Limited and Pakistan Petroleum Limited will jointly participate in the offshore bidding round with Turkish state-owned enterprise Türkiye Petrolleri Anonim Ortakl??? (TPAO).

Modern Diplomacy said the finding, made during a three-year survey, compiled data that suggests it is the fourth biggest oil and gas reservoir in the world. Venezuela, Saudi Arabia and Canada are the three countries with the largest proven oil reserves.



The cache is reportedly so large it could change the economic direction of Pakistan, where one in four people live in poverty.

If Pakistan's offshore reserves are that big, the obvious question is why haven't the oil majors been pestering the Pakistan government to drill them?

In a January 2024 article, Oilprice said Shell announced it was selling its Pakistan business stake to Saudi Aramco in June 2023, and an auction for 18 oil and gas blocks got a muted response from international bidders, at best. No international companies even bid on 15 of the blocks, according to The Nation.

In July [2024], the country's Petroleum Minister, Musadik Malik, told a parliamentary committee that no international companies were interested in offshore oil and gas exploration in Pakistan,and those in the country largely had the exit door in view.

It comes down to security, and risk versus reward with Malik explaining to the committee that the cost of security is a major deal-breaker because "in areas where companies search for oil and gas, they have to spend a significant amount to maintain security for their employees and assets". And security is provided by Pakistan, which has not been up to the task.

In March [2024], five Chinese engineers were killed in a suicide attack in Pakistan's northeast, when a vehicle rigged with explosives rammed into a bus transporting staff from Islamabad to the giant Dasu dam project in the Khyber Pakhtunkhwa province. The project is part of the $62-billion China-Pakistan Economic Corridor (CPEC). This incident sparked a series of temporary shut-downs across other projects, as well.

Earlier that same month, insurgents attacked Chinese assets in Pakistan's southwest, storming the Gwadar Port Authority complex, which is run by China. The attacks were perpetrated by the Balochistan Liberation Army (BLA), separatists fighting for an independent Balochistan, as reported by the Lowy Institute.

Massive Antimony reserves found in Balochistan; Gold and Copper confirmed in GB | The Express Tribune

https://tribune.com.pk/story/2537108/massive-antimony-reserves-foun...

Pakistan has made significant strides in mineral exploration, with the discovery of substantial antimony reserves in Balochistan and the confirmation of gold, copper, nickel, and cobalt deposits in Gilgit-Baltistan.

According to Express News, the discovery of antimony in Balochistan is part of a major commercial project undertaken by Oil & Gas Development Company Limited (OGDCL) and the Pakistan Mineral Development Corporation (PMDC).

The two companies have formed a 50:50 joint venture, which is expected to be officially announced at the Pakistan Minerals Investment Forum 2025, scheduled for April 8-9.

In Gilgit-Baltistan, significant progress has been made in securing ten mineral blocks, where surveys have confirmed the presence of gold, copper, nickel, and cobalt.

Meanwhile, efforts to explore mineral resources in Chiniot, Punjab, are ongoing, with OGDCL and the Mineral Department engaged in discussions to accelerate the process.

Pakistan is also exploring options to utilize Oman’s advanced facilities for refining antimony. Additionally, steps are being taken to align mining education with global standards to support the advancement of the sector.

To further develop the mineral sector, OGDCL is strengthening its collaboration with the Higher Education Commission (HEC) and universities. Additionally, preparations are underway for remote sensing and geological surveys to conduct a comprehensive analysis of Balochistan’s newly discovered antimony reserves.

Experts believe these discoveries could play a crucial role in boosting Pakistan’s economy and enhancing the country’s mining industry.

U.S. Eyes Pakistan’s Mineral Wealth – Foreign Policy

By Michael Kugelman

https://foreignpolicy.com/2025/04/16/pakistan-mineral-reserves-inve...

Pakistan's mineral reserves, which include massive copper and gold deposits as well as critical minerals such as lithium, are estimated to stretch across more than 230,000 square miles—more than twice the size of the United Kingdom.

As Pakistan bets on a mining boom, can it equal Indonesia’s nickel success? | South China Morning Post


https://www.scmp.com/week-asia/economics/article/3307992/pakistan-b...

Pakistan is poised to join the ranks of the world’s top producers of critical metals by the end of the decade, thanks to an April 8 deal between the government and Canadian mining giant Barrick Gold. Together, they aim to unlock the vast potential of Reko Diq, home to the world’s largest known untapped deposits of copper and gold with near-term production potential.

Chinese firms are already on the ground, Saudi Arabia is on the verge of investing, and the United States is clamouring for access to Pakistan’s mineral wealth. Analysts say this convergence of global interest gives Pakistan a rare chance to break free of its decades-long cycle of fleeting economic booms followed by prolonged stagnation.
“If Pakistan plays its cards right, it can leverage US-China competition to its advantage,” said Michael Kugelman, a Washington-based South Asia analyst. He argued that the country could secure investment deals from both powers, maximising returns from the expected influx of capital.

But the opportunity comes with risks. Pakistan faces mounting pressure to favour either China or the US in lucrative mining deals, Kugelman warned. This, in turn, could deepen Islamabad’s entanglement in global rivalries, “depriving it of the agency it would want to navigate geopolitical competition to its advantage”.


Prime Minister Shehbaz Sharif painted a more optimistic picture, however. Following the Barrick agreement, he said Pakistan could finally “say goodbye” to decades of reliance on the International Monetary Fund and other financial institutions – provided the country could fully capitalise on its mineral resources.

“With the right reforms, planning and integrated policies, that’s possible,” said Farwa Aamer, director of South Asia initiatives at the Asia Society Policy Institute, a New York-based think tank. She called the current moment “a unique opportunity” for Pakistan, not just to revitalise its beleaguered economy “but also to reclaim some of its relevance on the global stage” – a relevance that has waned since the US withdrawal from neighbouring Afghanistan in 2021.

The Indonesia model
Finance Minister Muhammad Aurangzeb, in a recent address to business leaders in Lahore, likened Pakistan’s copper reserves – part of the Tethyan metallogenic belt stretching from Europe to Southeast Asia – to Indonesia’s transformative nickel industry. Last year, Indonesia’s nickel exports generated US$22 billion.

“Copper is to us what nickel has been to Indonesia,” Aurangzeb said on April 12.

The potential is enormous. A feasibility study estimated that Reko Diq held more than US$60 billion worth of copper and gold. The project is expected to yield 13.1 million tonnes of copper and 17.9 million ounces of gold over its 37-year lifespan, with a quarter of the venture owned by the government of Balochistan, where the deposits are located.

Barrick, which holds a 50 per cent stake, projects US$74 billion in free cash flow over the mine’s lifetime. The first phase, requiring US$3 billion in financing from a multinational consortium led by the International Finance Corporation, is set to begin construction next year, after which exports are expected to commence in 2028. By 2029, operators plan to process 45 million tonnes of ore annually, with capacity doubling by 2034 following an additional US$3.5 billion investment.

Pakistan Isn’t That Risky Anymore. Its Economy Is a Mini-Miracle. - Barron's

https://www.barrons.com/articles/pakistan-economy-turnaround-257d44e3

For markets like Pakistan, it can take a threat of war to capture the world’s attention. Investors may regret not having looked sooner.

The country of 255 million has pulled off a macroeconomic miracle of sorts over the past two years. Inflation has nosedived from near 40% annually to near zero. Eurobonds maturing in 2031 have soared from 40 cents on the dollar to 80 cents. The Karachi Stock Exchange index has tripled. Prime Minister Shehbaz Sharif’s government reached a $7 billion stabilization agreement with the International Monetary Fund last September. More than $2 billion has already been disbursed.

“Pakistan is a good story,” says Genna Lozovsky, chief investment officer at Sandglass Capital Management, which buys distressed emerging markets debt. “So good it’s not risky enough for us anymore.”

The latest armed conflict with India, in a tenuous state of truce at press time, won’t likely knock Pakistan’s recovery off course. The country’s own shaky underpinnings might. The latest IMF bailout is its 24 th since joining the Fund in 1950. “Pakistan has been known for boom-and-bust cycles throughout its history,” notes Khaled Sellami, an emerging markets sovereign debt manager at Barings.

He sees some signs that this time could be different. Pakistan’s current bout of stabilization started with a near-default experience in 2022-23. Catastrophic flooding and a spike in oil prices following Russia’s invasion of Ukraine coincided with domestic political turmoil, as Sharif engineered a no-confidence motion against his predecessor Imran Khan, who was subsequently locked up on corruption charges.

“Everyone thought Pakistan would default along with Sri Lanka in 2023,” says Alison Graham, chief investment officer at frontier markets specialist Voltan Capital Management.

Instead, the State Bank of Pakistan hiked interest rates from 10% to 22%, pitching the country into recession but wringing out inflation. Sharif won a (disputed) election in February 2024, and improved Khan’s rocky relations with Islamabad’s meddlesome military, hopefully securing political stability until the next required poll in 2029.

Pakistan’s sovereign creditors—China, Saudi Arabia and the United Arab Emirates—rolled over their loans without extending new credit. Gross domestic product growth bounced back to 2.5% last year, and the country’s books are uncustomarily balanced. “The current account balance is positive, and they have a primary fiscal surplus [excluding interest payments],” Sellami observes. “That’s something we haven’t seen in many years.”

Stabilization is one thing, though, development another. Pakistan’s IMF program, like all IMF programs, calls for reforms that will be unpopular with powerful interests or the population at large. Islamabad is supposed to increase its tax take by half and slash electricity subsidies, among other uphill battles.

India’s leap forward in advanced industries like IT and pharmaceuticals points up its neighbor’s relative stagnation. Cotton, apparel and cereals account for two-thirds of Pakistan’s exports. It is belatedly moving into IT outsourcing, foreign sales rising from near nothing to $3 billion annually over the past few years, Sellami says. India is in the $200 billion range.

Without a value-added ladder to climb, fate and free-spending election cycles may continue driving Pakistan’s boom and bust, Graham thinks. “Pakistan remains extremely fragile to external shocks,” she says. “When there is a rally, you need to be in early.”

Sellami is more optimistic, remaining “constructive” on Pakistani Eurobonds.

Pakistan stocks soar to record high amid budget buzz, IMF tranche

https://www.arabnews.com/node/2600857/business-economy


ISLAMABAD: Bulls took charge of the local bourse today, Thursday, as the Pakistan Stock Exchange surged to new heights, fueled by optimism surrounding upcoming budget announcements and the release of a $1 billion tranche by the IMF, analysts said.

Pakistan on Wednesday received the second tranche of special drawing rights worth 760 million ($1,023 million) from the IMF under an extended fund facility (EFF) program. The IMF last week approved a fresh $1.4 billion loan to Pakistan under its climate resilience fund and also approved the first review of its $7 billion program, freeing about $1 billion in cash.

Pakistan’s federal budget for the next fiscal year, starting July, will be finalized within the next four weeks, with scheduled budget talks with the IMF to take place from May 14-23, according to the finance ministry.

The benchmark index witnessed a remarkable intraday rally, climbing as much as 1,453 points before closing with an impressive gain of 1,425 points at 119,961, marking a 1.20% increase and setting a new all-time high.

“Refinery stocks ended the day in the green amid sector-specific developments,” brokerage house Topline Securities said in a daily market review.

“The government is working to finalize a binding legal framework between oil marketing companies and refineries, with key clauses like take-or-pay aimed at resolving ongoing disputes over product upliftment and HSD imports — a move expected to bring greater clarity and stability to the supply chain.”

Market participation also picked up, with total traded volume reaching 695 million shares and a traded value of Rs39.01 billion. Pakistan Refinery Limited topped the volume chart with 50.8 million shares traded.

Samiullah Tariq, head of research and development at Pak Kuwait Investment Company Ltd, said the market was positive due to recent inflows from the IMF, noting the “expectations of further inflows on the back of the IMF Board approval.”

Thursday’s bullish momentum also comes as the market continues to recover from upheaval brought by the most intense military row between Pakistan and India in years last week. The two nuclear-armed nations agreed to a US-brokered ceasefire on Saturday.

AKD Securities
@akdsecurities

𝐏𝐚𝐤𝐢𝐬𝐭𝐚𝐧 𝐣𝐨𝐢𝐧𝐬 𝐭𝐡𝐞 𝐔𝐒$𝟒𝟎𝟎 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 𝐆𝐃𝐏 𝐥𝐞𝐚𝐠𝐮𝐞

Pakistan's 2025 GDP estimated at $411 billion

https://x.com/akdsecurities/status/1924774821826543723

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AKD Securities
@akdsecurities
𝐏𝐚𝐤𝐢𝐬𝐭𝐚𝐧’𝐬 𝐩𝐞𝐫 𝐜𝐚𝐩𝐢𝐭𝐚 𝐢𝐧𝐜𝐨𝐦𝐞 𝐡𝐢𝐭𝐬 𝐚 𝐡𝐢𝐬𝐭𝐨𝐫𝐢𝐜 𝐡𝐢𝐠𝐡 𝐨𝐟 𝐔𝐒$𝟏,𝟖𝟐𝟒

https://x.com/akdsecurities/status/1924798326920065387

AKD Securities
@akdsecurities
Pakistan worker remittances increased by 14%YoY to US$3.7bn in May'25

https://x.com/akdsecurities/status/1932759007069884750

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The inflows brought total remittances for July-May FY2024-25 to $34.9 billion, marking a 28.8 percent increase from $27.1 billion in the same period last year. The rise follows a record breaking $4.1 billion in March, the highest-ever single-month inflow, and a robust $3.2 billion in April.

https://www.arabnews.com/node/2604146/pakistan

The strong performance has helped offset Pakistan’s trade deficit and support its fragile foreign exchange reserves amid continued macroeconomic pressure.

“This is the highest level of remittances recorded in recent months,” the SBP said in a statement, noting that the increase reflected stronger flows from key corridors and a growing shift toward formal remittances channels.

Analysts attribute the surge to a combination of factors, including improved exchange rate management, government crackdowns on hawala and hundi informal systems for transferring money internationally, and seasonal flows during Ramadan and Eid.

Saudi Arabia remained the largest contributor in May, sending $913.9 million, followed by the United Arab Emirates ($754.2 million), the United Kingdom ($588.1 million), and the United States ($314.7 million)

Muhammad Umar Aziz
@umar_aziz_khan
Pakistan has significantly reduced its current account deficit from $15.2B in FY22 (11 months, PTI) to $3.8B in FY23, $1.6B in FY24, and achieved a $1.8B surplus in FY25 (11 months). On track for its first annual surplus in 14 years. Commendable effort by the PMLN team!

https://x.com/umar_aziz_khan/status/1936086459745734902

Abdul Rehman Najam
@AbdulRehman0292
🇵🇰🇵🇰 posts massive current account surplus of $2.1 Billion in FY25, highest in last 22 years.

Current account surplus is no longer due to restricted imports, it is now because of bumper remittances and increased exports. Combined inflows of almost $80 billion in FY25.

$$ reserves have increased to $14 billion from just $3.5Bn two years ago, without any increase in foreign debt ✅✅

https://x.com/AbdulRehman0292/status/1946158062181519815

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Arif Habib Limited
@ArifHabibLtd
Current Account surplus reached USD 2.1bn in FY25

In Jun’25, a current account surplus of USD 328mn was recorded, compared to a deficit of USD 500mn in Jun’24 and a deficit of USD 84mn in May’25.

For the FY25, the country posted a current account surplus of USD 2,106mn, an improvement from the deficit of USD 2,072mn during the same period last year.

https://x.com/ArifHabibLtd/status/1946152600925032628

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SBP
@StateBank_Pak
Current account balance recorded a surplus of US$2.1 billion during FY25 compared to a deficit of US$2.1 billion during FY24.
https://bit.ly/3Ox6ZwI

https://x.com/StateBank_Pak/status/1946156934999966200

Trump Truth Social Posts On X
@TrumpTruthOnX
We are very busy in the White House today working on Trade Deals. I have spoken to the Leaders of many Countries, all of whom want to make the United States “extremely happy.” I will be meeting with the South Korean Trade Delegation this afternoon. South Korea is right now at a 25% Tariff, but they have an offer to buy down those Tariffs. I will be interested in hearing what that offer is.

We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves. We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!

Likewise, other Countries are making offers for a Tariff reduction. All of this will help reduce our Trade Deficit in a very major way. A full report will be released at the appropriate time. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!

https://x.com/TrumpTruthOnX/status/1950654905804279830

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Trump Says Pakistan Deal Done, South Korea Is Close

https://www.wsj.com/livecoverage/fed-meeting-interest-rate-decision...


The U.S. and Pakistan have concluded a trade pact, President Trump said Wednesday, adding that a deal could be close with South Korea.

Trump said on Truth Social that the U.S. has “concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,” and is in the process of choosing a company to lead the partnership.

Trump also said he would meet with a South Korean delegation on Wednesday afternoon, who would bring an offer to “buy down” the 25% tariffs Trump has threatened to impose Aug. 1. Trump has previously pressed others to commit funds to build infrastructure and energy projects in the U.S., including the European Union and Japan.

Trump provided no further detail, but said "a full report" would be released "at the appropriate time."

Adeel Afzal
@AdeelAfzal06
Pakistan’s Reko Diq project secures $5B in financing offers from global institutions including ADB, IDB, IFC, US Exim Bank, and others, exceeding its $3B requirement. Backed by Barrick Gold and SIFC, the project is expected to generate $2.8B in annual exports and $74B in long-term cash flow.

https://x.com/AdeelAfzal06/status/1951551517439263171

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Donors offer $5b for Reko Diq
ADB, US Exim Bank among lenders offering funds for copper, gold project

https://tribune.com.pk/story/2559222/donors-offer-5b-for-reko-diq

Sources told The Express Tribune that the commitments received from foreign donors were more than the funding requirement for the Reko Diq project, which is estimated at $3 billion.
They said that the donors included the Asian Development Bank (ADB), Islamic Development Bank (IDB), International Finance Corporation (IFC) and US Exim Bank. Development agencies from Germany and Denmark have also offered financing.

According to sources, the financial close of the project is at an advanced stage and Petroleum Minister Ali Pervaiz Malik, backed by the Special Investment Facilitation Council (SIFC), is taking the lead and making aggressive efforts to expedite work, which will pave the way for exploring the entire potential of the mining sector.

It is interesting to note that the US Exim Bank has offered no cap on financing and is ready to provide capital, which Pakistan and other partners desperately need. The Ministry of Petroleum recently organised a webinar in association with the US embassy to woo American investors to participate in mining projects in Pakistan. State-owned exploration giant Oil and Gas Development Company (OGDC) is a key partner in the Reko Diq project and efforts are underway to kick off work. It also helped arrange a mineral conference, which attracted financing offers

Pakistan is blessed with abundant mineral resources that hold immense potential for fuelling economic growth and industrial development. The country’s vast reserves of minerals, including coal, copper, gold, iron ore, chromite and precious stones, provide a solid foundation for the mining sector to thrive and contribute to economic development.
Despite its huge potential, the mineral sector currently contributes around 3.2% to the gross domestic product (GDP), with exports accounting for only 0.1% of the world’s total. However, with increasing exploration, foreign investment and infrastructure improvements, the mining industry is poised for significant expansion.

Pakistan’s mineral-rich landscape covers an outcrop area of approximately 600,000 square kilometres. With 92 known minerals, 52 of which are commercially exploited, Pakistan produces an estimated 68.52 million metric tons of minerals annually. The sector supports over 5,000 operational mines and 50,000 small and medium enterprises (SMEs), providing direct employment to 300,000 workers.

Some of the country’s most notable mineral reserves include the world’s second-largest salt mines, the fifth-largest copper and gold deposits and significant coal reserves. Furthermore, Pakistan holds vast quantities of bauxite, gypsum and precious stones such as ruby, topaz, and emerald, which offer considerable export potential.
Globally, mineral resources play a crucial role in economic development. Many developed countries, including China, Italy, Turkiye, Spain and Brazil, have effectively leveraged their mineral wealth to fuel industrial growth, increase employment and enhance per-capita income.

Pakistan’s mineral sector holds similar promise. With strategic planning and investment, the country can improve trade, generate employment and facilitate infrastructure development, ultimately accelerating economic progress.

The local mining sector is increasingly attracting foreign investment, with global firms eyeing the untapped mineral reserves. The Reko Diq copper and gold project, located in the Chagai district of Balochistan, has the world’s largest untapped copper reserves and stands as a milestone for Pakistan’s mining ambitions.

Donors offer $5b for Reko Diq
ADB, US Exim Bank among lenders offering funds for copper, gold project

https://tribune.com.pk/story/2559222/donors-offer-5b-for-reko-diq

The project, revived by Canada’s Barrick Gold, is expected to start producing copper and gold by 2028, with an initial investment of $5.5 billion. According to Mark Bristow, CEO of Barrick Gold, which owns a 50% stake in the project, the reserves are expected to generate $74 billion in free cash flow over the next 37 years.

The mine is anticipated to generate $2.8 billion in annual exports, create thousands of jobs and transform the local economy. A planned expansion will increase copper production to 400,000 tonnes and gold output to 500,000 ounces per year, with an additional investment of $3.5 billion

Under an intergovernmental transaction agreement, the federal cabinet has approved the sale of a 15% stake in the Reko Diq project to Saudi Arabia. This underscores the region’s potential as a hub for foreign investment in the mining sector. Saudi Arabian mining company Manara Minerals will acquire the 15% stake, potentially involving an investment of $1 billion.
Logistics for the Reko Diq mine will be managed through a railway track, which is being built in partnership with Pakistan Railways. Railway tracks will essentially entail moving mining supplies to Karachi and eventually exporting copper concentrate and gold.

US Firms Said to Eye Pakistan Oil After Trump’s Reserves Claim

https://finance.yahoo.com/news/us-firms-said-eye-pakistan-053605583...

(Bloomberg) -- America’s most senior envoy in Pakistan has told the South Asian nation that US companies are showing “strong interest” in its oil and gas sector, after President Donald Trump late last month surprised the industry by vaunting “massive” reserves.

Pakistan’s Petroleum Minister Ali Pervaiz Malik met with US Charge d’Affaires Natalie A. Baker last week in Islamabad on strengthening cooperation in the energy sector, according to the ministry. Malik said talks with American companies on a round of bids for exploration blocks were already underway.

“There is a strong and growing interest from US companies in Pakistan’s oil, gas, and minerals sector, in line with the vision of President Trump,” Baker said, according to a ministry statement. The embassy would “actively facilitate direct linkages” between American and Pakistani companies, she added.

The US embassy in Islamabad didn’t immediately elaborate on the comments.

Trump sparked a surge of interest in Pakistan’s energy potential after a social media post in July claimed the country has “massive oil reserves” — a declaration that caught a number of industry veterans by surprise. The comment is at odds with existing estimates and comes against a backdrop of declining foreign investment.

It also coincides with the US president’s trade spat with India. At the same time as Trump was talking up Pakistan’s oil potential, he was ripping New Delhi for buying crude from Russia, threatening economic penalties and souring diplomatic relations. The US president needled India further, suggesting Islamabad could sell oil to its neighbor “some day!”

It’s a “political statement,” said Moin Raza Khan, an energy veteran and former chief executive officer of Pakistan Petroleum Ltd., the country’s second-largest energy explorer. “If Pakistan had massive oil reserves” then so many foreign companies wouldn’t have left, he added.

A White House spokesperson declined to comment beyond Trump’s post.

Pakistani officials like to cite a 2013 estimate from the Energy Information Administration of 9.1 billion barrels of recoverable shale oil, but analyst Iqbal Jawaid at Karachi Arif Habib Ltd. reckons overall reserves are much lower. He puts the figure at closer to about 238 million barrels.

That’s modest at best, when the world’s biggest oil producers, such as Saudi Arabia, Russia and the US, are sitting on billions of recoverable barrels, according to estimates from Rystad Energy. In terms of discoveries, it has been more than a decade since anything notable was found in Pakistan.

The two most recent big finds are now the nation’s two-largest oil-producing fields, said Karachi Arif’s Jawaid. Makori East was discovered in 2011 by a group that includes Hungary’s MOL Group, and Nashpa in 2009 by a venture led by Oil & Gas Development Co., the country’s biggest explorer.

US firm makes a $500 million investment deal with Pakistan for critical minerals | AP News

https://apnews.com/article/pakistan-us-company-signed-deal-minerals...

ISLAMABAD (AP) — A U.S. metals company signed a $500 million investment deal with Pakistan on Monday.

Pakistan’s Frontier Works Organization — which is the country’s largest miner of critical minerals — signed a memorandum of understanding with Missouri-based U.S. Strategic Metals for collaboration plans that include setting up a poly-metallic refinery in Pakistan.

The deal comes after Washington and Islamabad last month reached a trade agreement that Pakistan hoped would attract American investment in its minerals and oil reserves.

U.S. Strategic Metals is focused on producing and recycling critical minerals, which the U.S. Department of Energy has defined as essential in a variety of technologies related to advanced manufacturing and energy production.

A second agreement was signed between the National Logistics Corp of Pakistan and Mota-Engil Group, a Portuguese engineering and construction company.

A statement from Prime Minister Shehbaz Sharif’s office said he held talks with the delegation from U.S. Strategic Metals and Mota-Engil over Pakistan’s copper, gold, rare earths and other mineral resources.

The sides expressed readiness to develop value-added facilities, enhance mineral processing capacity, and undertake large-scale projects tied to mining, the statement said.

“The partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements,” it added.

The U.S. embassy in Pakistan said in a statement: “This signing is yet another example of the strength of the U.S.-Pakistan bilateral relationship that will benefit both countries.”

Earlier this year, Sharif claimed that Pakistan possesses mineral reserves worth trillions of dollars, and foreign investment in the mineral sector could help the country overcome its prolonged financial crisis and free itself from the burden of massive foreign loans.

Most of Pakistan’s mineral wealth is in the insurgency-hit southwestern Balochistan province, where separatists have opposed the extraction of resources by Pakistani and foreign firms.

In August, the U.S. State Department had designated theBalochistan National Army separatist group and its fighting wing, the Majeed Brigade, as a foreign terrorist organization.

Oil and minerals reserves have also been found in the southern Sindh, eastern Punjab and northwestern Khyber Pakhtunkhwa bordering Afghanistan.

Several companies have already signed agreements with Pakistan in the mining sector. They included the Canadian firm Barrick Gold, which already owns a 50% stake in the Reko Diq gold mine in Balochistan.

Pakistan courts US with pitch for new Arabian Sea port ( at Pasni for critical minerals export)

https://www.ft.com/content/9f7c7bf2-76ed-4eb6-bb9a-f628d05b0068

Late last month, Pakistan shipped a modest first consignment of fewer than two tonnes of critical and rare earth minerals to USSM that included copper, antimony and neodymium. The price of antimony has soared since Beijing imposed a ban on selling it to the US late last year.

Advisers to Pakistan’s military strongman Asim Munir have approached US officials with an offer to build and run a port on the Arabian Sea that could give Washington a foothold in one of the world’s most sensitive regions. The audacious plan, seen by the Financial Times, envisages American investors developing the seaside fishing town of Pasni as a terminal for access to Pakistan’s critical minerals. Pasni is just 100 miles from Iran and 70 miles from the Pakistani city of Gwadar, which has a China-backed port. The initiative, which is not official policy, reflects how Pakistani officials are exploring ways to capitalise on the sweeping geopolitical upheaval in South Asia of recent months.

The offer has been floated with some US officials, and was shared with Munir ahead of a meeting with Donald Trump in the White House late last month, according to two civilian advisers to the army chief who both asked not to be named. But a senior Trump administration official said the US president and his advisers had not discussed such a proposal.

The scheme is one of several ideas floated publicly and privately by Pakistani officials to maintain momentum with the Trump administration. They include engagement with a Trump-backed crypto venture, deepening co-operation against Afghanistan-based militant group Isis-K, endorsement of his Gaza peace plan and access to critical minerals.

Munir and Trump have forged what US and Pakistani diplomats are referring to as “a bromance” since the American president claimed credit in May for a ceasefire that ended the worst fighting between Pakistan and India in decades.

After two decades of warming ties with India, the US has over the summer publicly sparred with New Delhi. While India has rejected Trump’s claims of involvement in the ceasefire, Munir and Prime Minister Shehbaz Sharif have publicly thanked him and nominated him for the Nobel Peace Prize.

In return, Trump has lavished praise on Pakistan’s army chief. After their latest meeting last month, the White House released pictures of Munir and Sharif presenting the US leader with a display case of mineral samples.

“The whole narrative [of the US-Pakistan] relationship changed after the war,” said one of the advisers, who has been involved in back-channel contacts with the Trump circle for more than a year.

“It was very bad before then. We had not tended the relationship as we should have,” the adviser said. “In the last two decades the Indians occupied the space in the vacuum.”

The proposed port at Pasni would be linked to a new railway to transport minerals from Pakistan’s interior, the advisers said, in particular copper and antimony, a vital ingredient in batteries, fire-retardant and missiles.

A blueprint anticipated the port would cost up to $1.2bn with a proposed financing model that would be a mix of Pakistani federal and US-backed development finance. Advocates of the plan see it as a way of hedging the country’s position on the global stage as it seeks to balance a constellation of diplomatic ties with China, the US, Iran and Saudi Arabia, with which Islamabad signed a security pact last month.

“Pasni’s proximity to Iran and Central Asia enhances US options for trade and security . . . Engagement at Pasni would counterbalance Gwadar . . . and expand US influence in the Arabian Sea and Central Asia,” according to the blueprint.

“China’s Gwadar investments under the Belt and Road Initiative raise dual-use concerns,” it added, in an apparent allusion to US concerns Gwadar could serve as a Chinese naval base, a suggestion denied by Islamabad and Beijing.

The wildcat traders and US contractors piling into Pakistan’s antimony

Fears about China’s control of the rare earth supply chain have bolstered demand for alternative suppliers

https://www.ft.com/content/deba26df-9ae0-4c16-986a-dd8c2accbecb

For years, the only buyers for the antimony Jabbar Khan sourced from wildcat traders in Afghanistan were secretive Chinese intermediaries, who bargained hard over the price.

Now, Khan, chief operating officer at Himalayan Earth Exploration company, is fielding calls from US buyers interested in stockpiling the silvery-white rock vital to the production of missiles, batteries and flame retardants from Pakistan and central Asia.

The price of antimony trioxide has shot up to around $40,000 per tonne — off its peak of more than $60,000 as some users seek alternatives but still substantially higher than $26,000 in September 2024 — as fears about China’s control of the supply chains for metals including antimony have sparked a global race to secure supplies.


Thanks to US President Donald Trump’s desire to secure critical minerals, “the conversations we had been pushing for seven years, especially around antimony, finally started gaining traction both in Pakistan and the United States”, said Liaqat Ali Sultan, the chief executive of Himalayan.

Pakistan at present produces a small amount of mined antimony — much of it on the mountainous border with Afghanistan where militants this year have killed more than 1,700 people — and holds just one per cent of the world’s reserves, according to the US Geological Survey. China has around a third of global reserves while Russia has almost a fifth.

But so eager is Pakistan to reap the rewards of the global race for critical minerals that advisers to Field Marshal Asim Munir, the country’s army chief and its de facto most powerful official, have suggested building a bespoke terminal to ferry antimony to the US.

Last month, Pakistan-based Himalayan signed a “strategic partnership” with Nova Minerals, a company dual listed in Australia and the US, to “strengthen US-Pakistan economic ties” through exploring for antimony.

Nova, which received a $43mn grant from the US defence department this year to explore for gold and antimony in Alaska, does not at present produce any antimony but said in September that it aimed to produce “military-grade antimony by 2026/27”.

Christopher Gerteisen, Nova’s chief executive, said his company will buy “over 100 tonnes” of Pakistani antimony concentrate for about $2mn early next year for testing and processing in Alaska. It may eventually set up “downstream processing” of the ore in Pakistan, he said. “The Department of War encouraged us to go out in the world and find whatever we can,” he added, using the Trump administration’s preferred name for the defence department.

Missouri-based US Strategic Metals in September agreed with Pakistan’s military and political leaders to collaborate on “critical minerals essential for the defence, aerospace and technology industries”. The company’s planned US processing plant and mine are not yet operational. It received a small sample of Pakistani antimony in October for quality testing.

Tajikistan, the second-largest antimony producer and a neighbour of Pakistan’s, is also benefiting from US attention. In a White House meeting with Trump last month, Tajik president Emomali Rahmon praised the ex-Soviet nation’s “brilliant co-operation” with the US on exporting the mineral.

Even if antimony can be mined, processing expertise remains concentrated in China. “The recent global price surge was driven not by a shortage of ore, but by limited processing capacity outside China,” said Cristina Belda, an analyst from Argus Media. The number of smelters capable of processing antimony outside China “remains limited”.