October 29, 2025
4 mins read

Growing voices in Pakistan against the U.S. rare earth deal

In times of fiscal crisis, successive governments have sought lifelines from foreign partners, often at the expense of long-term sovereignty and local participation. The current rare earth minerals debate risks becoming another episode in this pattern unless the government takes concrete steps toward openness … writes Dr Sakariya Kareem

A storm is brewing in Pakistan’s political circles following emerging media reports about Islamabad’s supposed deal with the United States concerning the sale of rare earth minerals and potential access to the strategically located Pasni port.

The issue has triggered a wave of criticism from multiple quarters, most notably from the former chairman of the Senate, Raza Rabbani, who has taken a firm stand against what he perceives as the federal government’s secretive dealings and disregard for constitutional protocols. The controversy is not merely about mineral trade; it touches the deeper veins of federalism, sovereignty, and national resource management in a country already grappling with internal political fractures.

Raza Rabbani, a senior leader of the Pakistan Peoples Party and a long-time advocate of provincial autonomy, has demanded that the federal government immediately brief parliament on what he calls a “new U.S. policy.” His remarks came in response to growing speculation in the press regarding a possible agreement allowing a U.S. company to acquire or manage Pakistan’s rare earth mineral resources. Adding fuel to the controversy are suggestions that the government may even be considering granting operational access to Pasni, a small but strategically vital port on Balochistan’s Makran coast, to Washington. For many observers, these reports echo Pakistan’s historical patterns of making strategic concessions to external powers in times of economic desperation, decisions later challenged as compromises on sovereignty.

Rabbani’s criticism goes beyond the mere lack of information; it targets the fundamental structure of decision-making within the state. He accuses the federal government of bypassing constitutional requirements, particularly those enshrined in Article 172 of the Constitution. The article is explicit that the mineral resources within a province are jointly owned by the federal and provincial governments. Rabbani argued that this joint ownership gives the provinces the legal and moral right to be part of any discussion or decision concerning the exploration, sale, or lease of mineral resources.

His remarks draw attention to the broader tensions between Pakistan’s federal and provincial dynamics, particularly concerning resource control. Balochistan, which holds vast reserves of copper, gold, lithium, and other critical minerals, has long accused Islamabad of exploitation and neglect. The province remains one of the most resource-rich yet economically deprived regions in the country. Any decision about mineral contracts that excludes Baloch representatives is therefore seen locally as another act of central dominance. In this environment, Rabbani’s voice resonates strongly with long-standing provincial resentment and fears of being sidelined once again.

The federal government’s silence on the matter has only deepened public suspicion. Neither the Ministry of Commerce nor the Ministry of Energy has issued any clarification on whether discussions with the United States, or any particular U.S. company, have advanced to the stage of a formal agreement.

Meanwhile, government sources have argued that such strategic deals, especially those involving critical minerals essential to modern technologies, could provide Pakistan with much-needed foreign investment and technological expertise. Yet, the absence of transparency and inclusive consultation continues to overshadow any potential economic justification. Rabbani contends that development cannot come at the cost of constitutional process or public accountability.

Rabbani made it clear that the question is not limited to foreign relations; it is about internal legitimacy. He reminded the government that the Council of Common Interests (CCI), the constitutional forum designed to resolve disputes on subjects of shared interest between the federation and provinces, must be convened before proceeding with any mineral-related policy. The CCI, according to him, is not a ceremonial body but an integral institution meant to ensure cooperative federalism. He also recalled that provincial representatives had previously rejected a proposed minerals law by the federal government for being overly centralized and contrary to Article 172. Thus, bypassing the CCI once again would not only be unconstitutional but politically incendiary.

The unfolding scene encapsulates Pakistan’s recurring dilemma about the tension between external dependency and internal accountability. In times of fiscal crisis, successive governments have sought lifelines from foreign partners, often at the expense of long-term sovereignty and local participation. The current rare earth minerals debate risks becoming another episode in this pattern unless the government takes concrete steps toward openness. The demand for a parliamentary briefing and a CCI meeting is not merely procedural; it represents a broader public plea for democratic oversight in a country where crucial resource agreements have historically been shrouded in secrecy.

Whether or not the reported deal with the U.S. materializes, the controversy carries a deeper message. Pakistan’s future cannot be negotiated behind closed doors, especially when it involves assets that belong constitutionally to its people and provinces. If the government wishes to avoid the perception of another covert concession to an external power, it must heed calls  not as political opposition, but as a constitutional necessity.

Newsdesk

Newsdesk

Aravind Rajeev is Deputy News Editor at Asian Lite, mostly covering the Middle East and GCC. He has over eight years of experience as a journalist, with a background in ground-level reporting, crime reporting, as well as international and regional news.

Previous Story

India, Russia vow deeper defence ties

Next Story

EU leaders to be chief guests at R-Day

Previous Story

India, Russia vow deeper defence ties

Next Story

EU leaders to be chief guests at R-Day

Latest from -Top News

Pakistan Risks Overstretching Itself in Yemen War

Pakistan’s expanding military role in Saudi Arabia amid the Yemen conflict could strain its defence resources and fragile finances…reports Asian Lite News Desk Pakistan’s military involvement in the war in Yemen may prove unsustainable because of mounting financial pressures and competing security demands, according to a new report. Islamabad’s growing military presence in Saudi Arabia risks stretching its defence resources while exposing the country to greater strategic and economic challenges. An article by Andrew Wilson in One World Outlook describes Pakistan’s involvement as a case of “fiscal and strategic overreach”, arguing that the country lacks the financial flexibility to sustain an expanded military commitment. Pakistan’s external finances depend heavily on an International Monetary Fund (IMF) programme, financial support from Gulf countries and remittances from Pakistani workers in the region. The report argues that deeper military involvement in the conflict could place additional pressure on these sources of financial stability. It also warns that deploying troops and military equipment abroad could weaken Pakistan’s capacity to address security challenges along its eastern border and deal with two domestic insurgencies. The move could also draw Islamabad into a conflict it has sought to approach cautiously. A Reuters report in May, citing Pakistani security and government sources, said Islamabad had deployed around 8,000 troops, a squadron of approximately 16 aircraft, mostly JF-17 fighter jets, two drone squadrons and a Chinese HQ-9 air-defence battery to Saudi Arabia. According to those sources, Riyadh was financing the deployment, with Pakistani personnel operating the equipment. The sources also said a confidential agreement contemplated the possibility of deploying up to 80,000 troops. Islamabad has not confirmed those figures, although it has acknowledged its military presence in Saudi Arabia, including the deployment of fighter jets at King Abdulaziz Air Base from April. The One World Outlook article argues that Saudi financial support can cover allowances and operating expenses but cannot easily replace military equipment needed elsewhere or resolve the political and strategic challenges of participating in the Yemen conflict. Pakistan’s defence budget is another concern. For the 2026-27 financial year, the federal government allocated PKR 3 trillion, or approximately $10.8 billion, to defence services. The allocation represents an 18 per cent increase from the original PKR 2.55 trillion provision and amounts to around 2.1 per cent of projected gross domestic product (GDP). Defence spending accounts for approximately 16 per cent of the federal government’s PKR 18.8 trillion expenditure. Military pensions are budgeted separately at PKR 822 billion, while debt servicing costs stand at approximately PKR 8 trillion, more than two-and-a-half times the defence allocation. The report argues that these competing financial obligations leave little room for additional military expenditure without placing further pressure on public finances. Pakistan’s reliance on IMF assistance also limits its fiscal flexibility. The country must meet the conditions attached to the programme, including a primary budget surplus target of 2 per cent of GDP and continued restraint on development spending. According to the article, these requirements make it difficult for Islamabad to finance an additional military commitment without compromising other budgetary priorities. Pakistan’s economic indicators offer limited reassurance. Economic growth for the 2025-26 financial year is estimated at between 3.6 and 3.7 per cent, while inflation reached approximately 10.3 per cent in September following an energy price shock. Foreign exchange reserves stood at around $21.5 billion at the end of September. Although this marks an improvement from the low levels recorded in 2023, the report notes that the reserves cover only a few months of imports. Financial assistance from Gulf partners remains central to Pakistan’s external stability. The article says Islamabad holds approximately $8 billion in Saudi deposits at its central bank. In July, the State Bank of Pakistan said Riyadh had extended the maturity of $5 billion in deposits to December 2028, easing the country’s immediate external financing requirements. A further $3 billion deposit was also extended in the spring. However, the article argues that these arrangements provide temporary relief rather than long-term financial independence, particularly as regional conflict threatens the stability of the Gulf economies on which Pakistan relies. The report concludes that Pakistan faces a difficult balance between supporting Saudi Arabia militarily and preserving the financial and military resources needed to address its domestic and regional challenges.

UK and Germany Ratify Kensington Treaty

Britain and Germany ratify the Kensington Treaty, agreeing new cooperation on AI, quantum research, defence and security while targeting investment, jobs and Russian hybrid threats…reports Asian Lite News Desk Britain and Germany

Economic tide is turning in Bangladesh

If there is one thing that can bring some comfort to the struggling Bangladeshi economy, it is good relations with India. Bangladesh should remember that Delhi’s backing, through easy supplies of essentials

DP World Lands 15-Year Bangladesh Port Deal

The agreement between the Chittagong Port Authority (CPA) and DP World covers the New Mooring Container Terminal…reports Asian Lite News Desk Bangladesh has signed a 15-year concession agreement with global ports operator
Go toTop

Don't Miss

Malaria outbreak worsens in Sindh: 93k new cases in one week

Ehtesham Ali said that the southern districts were currently under

Pakistan Braces for Record Fuel Price Surge

Under the commitments made with the International Monetary Fund, the