The Trump administration has reached out to Pakistan with an aim to explore partnerships in buying American locomotives and cooperation in the mineral sector. This includes studies and agreements to speed up mineral extraction, The Express Tribune reported, citing Pakistani government sources.
The report claims that the discussions took place during Pakistan’s Finance Minister Muhammad Aurangzeb’s visit to Washington in October, on the sidelines of the IMF annual meetings. And since then, Pakistani authorities have been holding internal talks to assess US interest in the transport and minerals sectors.
Meetings with senior US officials
During his visit, Aurangzeb met several senior US officials, including Raymond Emory Cox, Special Assistant to the US President for International Economic Relations and Ricky Gill, Special Assistant to the President and Senior Director for South and Central Asia. Sources told the news outlet that Gill asked Pakistan to support the purchase of American locomotives through a tender that had already been issued.
Pakistan had earlier bought 55 locomotives from the US. But Pakistan Railways is currently short on funds and is mostly focusing on repairing and refurbishing its existing trains, as per the report.
The sources also told the outlet that Gill requested Pakistan to give favorable consideration to Starlink’s application to provide high-speed internet in rural and remote areas. US officials reportedly emphasised that protecting and promoting American business interests is a key priority for President Trump’s administration. They welcomed Pakistan’s decision to withdraw a proposed 5% digital services tax, seeing it as a positive step for trade relations.
Critical minerals cooperation highlighted
The US officials also highlighted cooperation in critical minerals as a major priority. The US Congress has set up a $135 billion fund for global investments in critical minerals, and the US Exim Bank has approved a $1.25 billion loan for the Reko Diq Mining Company in Balochistan, the Express Tribune reported.
In another meeting, Thomas Lersten from the US State Department said the US is keen on working with Pakistan in the critical minerals sector. He suggested collaboration on reserve assessments and offtake agreements to speed up mining and mentioned that artificial intelligence would be a strategic focus for the US, as reported by the outlet.
Aurangzeb also met Robert Kaproth, Assistant Secretary of State for International Finance, who discussed regional financial developments and the US interest in private-sector digital finance solutions and cross-border digital frameworks, it added.
