Pakistan has presented the United States with a proposal to construct and operate a new Arabian Sea port facility, marking a strategic pivot as Islamabad seeks to balance its relationships between Washington and Beijing amid escalating global superpower competition.
The Proposal Details
reportedly, Pakistani officials have approached US officials with a comprehensive plan to transform the small fishing town of Pasni in Balochistan's Gwadar District into a major terminal for transporting Pakistan's critical minerals. The proposal, valued at approximately $1.2 billion, envisions American investors building and operating the port facility to access Pakistan's vast reserves of copper, antimony, and other materials essential for batteries, fire retardant materials, and missile production.
The initiative emerged following a White House meeting in September 2025 between Pakistani army chief Field Marshal Asim Munir, Prime Minister Shehbaz Sharif, and US President Donald Trump, where Pakistani leadership actively sought American investment in agriculture, technology, mining, and energy sectors. The proposal was shared with Munir ahead of his visit to meet Trump, the first time a Pakistani military chief has been hosted at the White House in such capacity.
Strategic Location and Infrastructure
Pasni's geographic positioning holds immense strategic value, located approximately 100 miles from Iran and 70 miles from China operated Gwadar Port. The blueprint specifically excludes military use, instead focusing on attracting development finance for a rail network linking the port to Pakistan's mineral rich western provinces. The proposed railway would connect to major mining operations including the Reko Diq copper and gold project developed by Canada's Barrick Mining, creating a comprehensive mineral extraction and transportation corridor.
The port plan includes provisions for financing through a combination of Pakistani federal resources and US-backed development funds, with Missouri based US Strategic Metals already demonstrating early interest by signing a memorandum of understanding with Pakistan's military engineering corps in September. The company has already received a small initial shipment of fewer than two tonnes of critical minerals, including copper, antimony, and neodymium from Pakistan.
Balancing Act Between Superpowers
The proposal represents Pakistan's calculated attempt to diversify its strategic partnerships while maintaining its crucial relationship with China. Pakistani officials describe the initiative as offering Washington a strategic presence in a geopolitically sensitive region while creating a counterbalance to Chinese influence at nearby Gwadar Port. The blueprint explicitly states that "Pasni's proximity to Iran and Central Asia enhances US options for trade and security" while noting that "engagement at Pasni would counterbalance Gwadar and expand US influence in the Arabian Sea and Central Asia".
This diplomatic maneuvering comes at a critical juncture when Pakistan faces mounting economic pressures and seeks to avoid total dependency on Chinese investment through the China-Pakistan Economic Corridor. Pakistani advisers acknowledge the strategic imperative, with one stating, "I've been telling our leaders we need to diversify from China. We don't need to consult the Chinese as it's outside the Gwadar concession". The approach reflects Pakistan's recognition that its struggling economy demands diversified markets, foreign investment, and energy cooperation from multiple partners.
Economic and Security Implications
The mineral sector currently accounts for approximately three percent of Pakistan's GDP, despite the country possessing substantial untapped reserves particularly in insurgency affected western provinces. Hussain Abidi, chair of the Pakistan Council of Scientific and Industrial Research, characterized the initiative as "a reset with America through economic ties rather than just the traditional security ties". This represents a fundamental shift from Pakistan's historical security focused relationship with Washington toward economic engagement that mirrors China's investment model.
The timing coincides with renewed US-Pakistan relations following years of deterioration after America's Afghanistan withdrawal. A landmark bilateral trade and energy agreement signed in July 2025 lowered US tariffs on Pakistani exports including textiles, surgical goods, leather, and IT services, while opening cooperation on oil exploration, cryptocurrency, and digital infrastructure. Both countries appear motivated by mutual benefits: Pakistan seeks economic diversification and breathing room from IMF conditionalities, while the US aims to secure access to critical minerals and reduce dependence on Chinese supply chains.
Regional and International Context
The proposal occurs against the backdrop of intensifying US-China rivalry, where Pakistan occupies a unique position as one of the few countries simultaneously courted by both superpowers. China has invested heavily in Pakistan through CPEC, developing Gwadar Port as a gateway to the Arabian Sea and global markets, while the US seeks to reestablish its presence in South Asia following its Afghan withdrawal. The Financial Times reported the proposal based on documents reviewed by the newspaper, though Reuters noted it could not immediately verify the report, and official responses from the US State Department, White House, and Pakistan's Foreign Ministry were not immediately available.
Pakistani officials frame the port proposal within a broader push to strengthen ties with the Trump administration, including collaboration on cryptocurrency projects, deeper cooperation against Afghanistan based militant groups, support for Gaza peace initiatives, and enhanced access to critical minerals.
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