Anwar Iqbal
February 5, 2026
US Secretary of State Marco Rubio speaks alongside Jacob Helberg during the inaugural Critical Minerals Ministerial meeting.— AFP
• Proposes a preferential trading arrangement to cut reliance on China
• Pakistan weighs options to maintain ties with both Washington and Beijing
WASHINGTON: The United States on Wednesday outlined plans to establish price floors for critical minerals and form a preferential trading arrangement among participating countries, a proposal that Pakistan has so far
chosen to approach cautiously as it seeks to maintain close ties with both Washington and Beijing.
US Vice President J.D. Vance told representatives from more than 50 countries that Washington was proposing a coordinated system to stabilise prices of critical minerals essential for clean energy, advanced technology and defence industries, arguing that market volatility had discouraged long-term investment.
Diplomatic sources in Washington told
Dawn that Pakistan has been briefed on the US proposal but has not yet signed on. Islamabad was represented at the two-day meeting by Federal Minister for Energy Ali Pervaiz Malik, rather than a senior political delegation, in what officials described as a calibrated approach to an initiative widely seen as aimed at reducing global dependence on China.
Pakistan, which is believed to possess substantial but largely untapped reserves of copper, gold and rare earth elements, used the Washington gathering to highlight its mineral potential while avoiding any public alignment with efforts to counter China’s dominance in the global critical minerals trade.
Speaking at the meeting, Vice President Vance said erratic pricing had made sustained investment in critical mineral industries “nearly impossible”.
“Consistent investment in critical mineral industries is nearly impossible when prices are wildly volatile,” he said, pointing to the impact of foreign supplies flooding markets before new projects could get off the ground.
Mr Vance proposed what he described as “a concrete mechanism to return the global critical minerals market to a healthier, more competitive state,” including the establishment of reference prices at each stage of production.
“We will establish reference prices for critical minerals at each stage of production — pricing that reflects real-world fair market value,” he said. “And for members of the preferential zone, these reference prices will operate as a floor, maintained through adjustable tariffs to uphold pricing integrity.”
He hinted at the formation of a trading bloc among allies and partners, saying the goal was to prevent market manipulation that undermines domestic producers.
“We want to eliminate that problem of people flooding into our markets with cheap critical minerals to undercut our domestic manufacturers,” he added, noting that several countries had already signed on to the initiative.
