By Staff Reporter
ISLAMABAD: Pakistan is offering mining concessions to US companies as it negotiates with Washington to sidestep steep tariffs, Reuters reported on Friday.
The move seeks to harness the Trump administration’s drive to deepen trade ties across South Asia.
Pakistan faces a looming 29% tariff on its exports to the US, triggered by a $3 billion trade surplus with the world’s largest economy. Washington unveiled the tariffs last month targeting countries with trade surpluses, only to suspend them for 90 days to pave the way for talks.
Commerce Minister Jam Kamal told Reuters that Pakistan will pitch opportunities for US businesses to invest in mining projects, centered in the mineral-rich Balochistan province, through joint ventures with local firms. The incentives include lease grants.
“We’ll offer them joint ventures with local companies, providing concessions like lease grants,” Kamal said in an interview. “Pakistan will table these offers during tariff negotiations with US officials in the coming weeks.”
The mining push comes alongside plans to ramp up imports from the US, particularly cotton and edible oils, which are running low in Pakistan.
Pakistan’s mining sector holds big promise. The Reko Diq copper and gold project in Balochistan, for instance, is chasing up to $2 billion in financing, with $500 million to $1 billion targeted from the US Export-Import Bank. The project director last month said the term sheets are expected by early Q3. Over its lifespan, the mine could deliver $70 billion in free cash flow and $90 billion in operating cash flow.
Kamal stayed tight-lipped on the bidding process for the mining concessions and other specifics. Still, he underscored the broader opportunity: “There is untapped potential for US companies in Pakistan, from mining machinery to hydrocarbon ventures.”
The overture aligns with signals from US President Donald Trump, who recently flagged “big deals” with both India and Pakistan. His comments follow Washington’s role in brokering a ceasefire earlier this month between the nuclear-armed neighbors, ending their worst clashes in decades.
“The previous US administration focused more on India, but Pakistan is now being recognized as a serious trade partner,” Kamal said.
Local newspapers reported that Pakistan has floated a zero-tariff bilateral trade agreement with the US, aiming to expand ties across multiple sectors. The government hailed Trump’s nod toward enhancing trade with Pakistan, with the proposal offering zero tariffs on selected items based on mutual interests.
In a further sweetener, Pakistan will trim tariffs in its upcoming federal budget, Kamal said.
The US hasn’t spelled out specific trade barriers or priority sectors, and the US Embassy in Islamabad didn’t immediately respond to a request for comment.
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