Pakistan to Offer Mining Concessions to US Companies Amid Tariff Talks

Islamabad intends to extend certain benefits to corporations from the United States willing to invest in the nation’s mining industry. This initiative is part of ongoing discussions with Washington concerning tariffs, as Pakistan aims to leverage the U.S. government’s interest in enhancing commerce with South Asia, according to the commerce minister.

Pakistan is potentially subject to a 29% tariff on its exports to the U.S. due to a $3 billion trade surplus. This tariff was initially declared by Washington on various countries, but its implementation was delayed for 90 days to allow for negotiations.

Commerce Minister Jam Kamal stated that Pakistan will present opportunities for U.S. firms to invest in mining ventures, predominantly located in Balochistan province. These opportunities will be structured as joint ventures with domestic enterprises and include incentives such as lease allocations.

The minister also mentioned parallel efforts to increase imports from the U.S., focusing on commodities like cotton and edible oils, which are currently scarce in Pakistan.

Pakistan plans to formally propose these mining investment incentives to U.S. officials during tariff negotiations in the coming weeks.

Kamal did not provide additional details regarding the bidding process for these mines or other specific information.

Untapped Potential

“There is untapped potential for U.S. companies in Pakistan, ranging from mining machinery to hydrocarbon ventures,” he noted in a recent interview.

Pakistan’s Reko Diq copper and gold mining project in Balochistan is seeking up to $2 billion in funding. This includes a potential contribution of $500 million to $1 billion from the U.S. Export-Import Bank, with term sheets anticipated by the start of the third quarter of this year, according to the project director.

The mine is projected to generate $70 billion in free cash flow and $90 billion in operating cash flow throughout its operational life.

U.S. President Donald Trump has indicated that he is pursuing “big deals” with both India and Pakistan, following Washington’s pivotal role in facilitating a ceasefire between the two nations after heightened tensions.

“The previous U.S. administration focused more on India, but Pakistan is now being recognised as a significant trade partner,” Kamal stated.

Pakistan intends to gradually reduce tariffs in its upcoming federal budget, according to Kamal.

He also indicated that the United States has not specified particular trade barriers or sectors of interest. The U.S. Embassy in Islamabad has not yet issued a response to requests for comments.