US adds Pakistan to $2.5bn AMRAAM missile deal amid improving ties

The United States has added Pakistan to the list of countries purchasing Advanced Medium-Range Air-to-Air Missiles (AMRAAM) under a contract modification with Raytheon, a leading American defence manufacturer.

According to a statement from the US Department of War for the US Air Force, Raytheon was awarded a $41.6 million firm-fixed-price modification to an existing AMRAAM contract on September 30, raising its total value to $2.51 billion.

The update includes the supply of enhanced C8 and D3 AMRAAM variants to multiple countries, including Pakistan — which was not listed in the earlier version of the agreement announced on May 7.

“Work will be performed in Tucson, Arizona, and is expected to be completed by May 30, 2030,” the department said.

The list of recipients also includes the United Kingdom, Germany, Australia, Japan, Saudi Arabia, Turkey, and several NATO and non-NATO partners.

The inclusion marks a notable development in US-Pakistan defence cooperation, amid improving bilateral relations in recent months. Diplomatic engagement between the two countries has expanded beyond security, with new initiatives in trade and minerals.

In September, the US Strategic Minerals Management (USSM) signed a memorandum of understanding with Pakistan to invest around $500 million in the country’s critical minerals sector.

The partnership aims to process and export key minerals such as copper, gold, tungsten, and rare earth elements, and to develop a poly-metallic refinery in Pakistan to serve US market demand.

Separately, Pakistan’s National Logistics Corporation (NLC) signed an agreement with Portugal-based Mota-Engil Group to explore collaboration in engineering and infrastructure projects. The two sides plan to focus on sustainable development, job creation, and technology exchange.

In a related economic move, Islamabad also secured a reciprocal tariff reduction agreement with the US, lowering rates from 29% to 19%, which officials described as a “landmark deal” aimed at boosting trade.