The Pakistan-US investment relationship is a largely untapped geoeconomic opportunity, carrying strategic significance that goes far beyond trade figures. While Pakistan sits on mineral reserves valued between $6-8 trillion, including copper, lithium, and rare earths, its potential role in helping the United States diversify global supply chains remains underexploited.

Pakistan’s mineral reserves are valued between $6-8 trillion, including copper, lithium, and rare earths.

In an era where great-power rivalry shapes economic choices, these resources are not just commercial commodities but strategic assets. For Washington, they can be instrumental in reducing dependence on politically volatile supply sources, especially as competition with China intensifies over critical minerals essential for clean energy and advanced technologies.

Despite this strategic alignment, the current scale of American investment in Pakistan tells a story of underutilization. According to the International Trade Administration, 83 American firms operate in Pakistan, generating over $3 billion annually, yet US foreign direct investment remains below $300 million a year.

The numbers point to a paradox, Pakistan already hosts an American corporate footprint, but the broader investment climate has not translated into sustained, large-scale capital flows. There was a moment of optimism when direct US investment rose by over 50% in FY2021-22, but the following year saw it drop sharply to $127 million. Such volatility underscores the fragility of investor confidence and the urgent need for policy recalibration.

The establishment of the Special Investment Facilitation Council (SIFC) has, however, shifted the narrative. This civil-military initiative is designed to remove procedural bottlenecks, lift shareholding caps, and fast-track visas for priority sectors such as IT, agritech, renewables, and mining. Early signals from the SIFC’s operational reforms have generated interest among global investors, including in high-value projects like Reko Diq.

US foreign direct investment in Pakistan remains below $300 million annually despite an existing $3 billion corporate footprint.

Expected to generate $74 billion over 37 years, Reko Diq has already caught the attention of American stakeholders, with the US Export-Import Bank reportedly evaluating a $1 billion financing package. If materialized, this would be a landmark investment, blending economic opportunity with strategic engagement.

The mineral story is only one dimension of this potential partnership. Lithium and antimony, both abundant in Pakistan, are vital for the US clean energy transition, battery storage technologies, and even military applications. As Washington works to secure its supply chains against overreliance on China, deeper investment in Pakistan offers both an economic hedge and a geopolitical advantage. This is not just about accessing raw materials; it is about building long-term economic resilience and reinforcing US influence in a region where China’s Belt and Road Initiative has already secured significant footholds.

Beyond extractives, Pakistan’s fintech, logistics, and health tech sectors are emerging as high-growth areas. A young, tech-savvy population is driving innovation and expanding consumer markets, offering US companies a first-mover advantage if they choose to scale up investment now. The country’s burgeoning startup ecosystem, particularly in financial inclusion and e-commerce, aligns well with American venture capital and technology expertise.

Unlocking this potential will require more than goodwill and individual project deals. A revamped Bilateral Investment Treaty could provide the legal safeguards and predictability investors seek, while greater institutional engagement through platforms like the US-Pakistan Business Council could deepen corporate-to-corporate and government-to-business linkages. In today’s geoeconomic environment, capital flows are rarely neutral; they shape influence, alliances, and the strategic balance of regions.

The SIFC is removing procedural bottlenecks and attracting interest in high-value projects like Reko Diq.

For the US, expanding investment in Pakistan is not simply about profit margins, it is about embedding itself in the economic future of a pivotal state that bridges South Asia, Central Asia, and the Middle East. For Pakistan, attracting sustained American capital would mean not only economic growth but also diversification of partnerships at a time of shifting global alignments. The window of opportunity is open, but it will not remain so indefinitely. The question is whether both nations have the vision and the political will to seize it before others do.

Disclaimer: The opinions expressed in this article are solely those of the author. They do not represent the views, beliefs, or policies of the Stratheia.