ISLAMABAD: A landmark agreement between Pakistan and the United States to export Pakistan’s strategic minerals including gold, copper, antimony, tungsten, and rare earth elements has set off alarm bells among jewellery exporters, who say the government is sacrificing value-added industries for raw material sales.
The MoU, signed at the Prime Minister’s House between Pakistan’s Frontier Works Organization (FWO) and Missouri-based U.S. Strategic Metals (USSM), allows immediate cooperation in mineral extraction and exports. Officials have touted the deal as a breakthrough for investment and resource development, but industry stakeholders warn it could backfire.
“By sending raw gold and other minerals abroad, Pakistan risks becoming just a supplier of unprocessed resources, while missing out on billions in potential earnings from finished products,” the jewellery exporters’ association said in a statement on Monday.
The exporters reminded the government that their sector is already paralysed due to the suspension of SRO 760, which has frozen gold jewellery exports for over four months. More than 52 kilograms of entrusted gold from foreign buyers remains stuck in Pakistan, undermining international trust and forcing buyers to consider shifting orders to rival markets such as India, Dubai, and Turkey.
The latest mineral export push has deepened fears that the government now sees gold strictly as a strategic commodity, sidelining the jewellery sector altogether. These worries intensified after reports confirmed that FWO and USSM have also signed a $500 million deal to build a poly-metallic refinery in Pakistan, signalling long-term prioritization of upstream extraction.
Exporters argue that the government’s policy contradictions are crippling. “On one hand, jewellery exports the only sector that could bring immediate foreign exchange remain blocked. On the other, raw gold is being prepared for export under new foreign deals,” one industry leader said.
Analysts caution that the shift toward raw resource exports may bring short-term inflows but risks permanently damaging Pakistan’s reputation as a jewellery exporter. Without urgent corrective measures, including lifting SRO 760 and balancing mining ventures with downstream industries, experts warn the country may be left with little more than depleted reserves and lost markets.
