US Seeks Pakistani Cooperation for Locomotive Sales, Mineral Exploration Amid Growing Trade Ties

The US government has approached Pakistan to explore potential partnerships in the sale of American locomotives and cooperation in mineral exploration, including assessment studies and agreements. According to sources in Pakistan's government, discussions on the matter took place during Finance Minister Muhammad Aurangzeb's visit to Washington in October, on the sidelines of the International Monetary Fund annual meetings. The US has expressed interest in selling locomotives to Pakistan, with President Donald Trump's administration prioritizing American commercial interests. Pakistan had previously procured 55 locomotives from the US, but the country's railways are currently facing liquidity constraints and rely heavily on repairs and refurbishment of existing fleet. US officials also sought Pakistan's support for the purchase of American locomotives under a tender that had already been issued. Furthermore, they requested favourable consideration of Starlink's licence application to provide high-speed internet services in Pakistan, particularly in rural and remote areas. Cooperation in critical minerals is a major priority for the US, with the US Congress establishing a $135 billion fund for global investments in critical minerals. The US Exim Bank has approved a $1.25 billion loan for the Reko Diq Mining Company in Balochistan. During the meetings, US officials emphasized the need for a level playing field for US companies and appreciated Pakistan's decision to withdraw a proposed 5% digital services tax to facilitate a trade understanding. They also highlighted the importance of artificial intelligence and digital finance solutions in the region. Pakistan's Finance Minister held several meetings with senior US officials, including Raymond Emory Cox, Special Assistant to the US President for International Economic Relations, and Ricky Gill, Special Assistant to the US President and Senior Director for South and Central Asia. The Pakistani government is currently evaluating US interest in the transport and minerals sectors.