ISLAMABAD: In a major development for Pakistan’s mining sector, companies from Pakistan and the United States on Monday signed agreements on critical minerals development and processing — a venture expected to bring in technology transfer, investment, and new jobs.

The deal was inked between the Frontier Works Organisation (FWO) and US Strategic Metals (USSM), a firm engaged in producing minerals vital to the modern economy, including cobalt, nickel, and lithium.

Unlike conventional mining ventures, the agreement goes beyond extraction. USSM has committed to establishing a refinery in Pakistan to process the raw minerals, making the country part of the global critical minerals supply chain.

Read More: KP govt approves digital pension system

Under the plan, USSM will invest $500 million in the first phase of the project. Officials said the venture is designed to cater to the needs of the US market while simultaneously developing Pakistan’s mineral potential.

The initiative is being hailed as a breakthrough that could not only generate significant employment opportunities but also strengthen Pakistan’s economic partnership with the US.