Pakistan Eyes Major US Investment in Mining Sector After Tariff Deal

The government is anticipating a significant boost in investment in Pakistan’s mining and mineral sector, alongside the export of refined copper, following a recent bilateral tariff agreement with the United States. The development, revealed on Sunday, is being hailed as a potential game-changer for the country’s underutilized mineral wealth, reported Dawn. Commerce Minister Jam Kamal Khan, in a report presented to the National Assembly, disclosed that during negotiations with US authorities on reciprocal tariffs, the American side expressed keen interest in investing in Pakistan’s mines and minerals, particularly copper. The breakthrough comes as the US administration, which had earlier imposed a 50% tariff on imports of copper, iron, steel, and aluminum, has now exempted refined copper from the hefty duty. “This exemption makes it far more advantageous for Pakistan to export value-added refined copper to the US market,” the minister stated. Pakistan, ranked fifth globally in copper reserves, holds immense potential to reduce its trade deficit by capitalizing on its mineral resources. Copper, a critical material in renewable energy systems and electric vehicles, is in high demand worldwide. However, the country has yet to fully exploit its reserves due to outdated mining infrastructure and limited processing capabilities. Currently, Pakistan exports raw copper ore primarily to China, missing out on lucrative markets in the US, Europe, and the Middle East. “This underutilization of our copper resources underscores the urgent need for strategic development in the mining sector,” Kamal said. To address this, the Geological Survey of Pakistan has been tasked with conducting detailed geological mapping to identify untapped reserves. The government is also working to streamline regulatory frameworks and address infrastructural gaps, such as building mine access roads and ensuring dedicated power supplies, to attract private sector investment and technological innovation. The commerce minister emphasized the importance of shifting from raw ore exports to value-added products like refined copper, bars, rods, and alloys. “By focusing on value-added exports, Pakistan can capture greater economic benefits from its mineral resources,” he said. Global demand for copper is expected to surge in the coming years, driven by its indispensable role in clean energy technologies. Kamal noted that strategic development of Pakistan’s copper sector could not only meet domestic economic goals but also help alleviate global shortages. “Through strategic investments and the adoption of modern technologies, Pakistan can unlock the full potential of its mineral resources. This would not only boost export earnings but also position the country as a responsible and reliable supplier in the international minerals market,” he added. The government successfully negotiated a reduction in US tariffs on Pakistani exports. Initially set at 29%, the tariff rate has been reduced to 19%, the lowest among Pakistan’s competitors in the US market. This reduction is expected to enhance Pakistan’s market share, particularly in textiles, within the highly competitive US market. The commerce minister highlighted the significance of this achievement, stating that the new tariff rates would be instrumental in increasing the penetration of Pakistani goods in the US. With the US showing interest in Pakistan’s mining sector and the government’s focus on value-added exports, the country is poised to transform its mineral wealth into a key driver of economic growth. By addressing infrastructural and regulatory challenges, Pakistan aims to attract foreign investment, boost export earnings, and position itself as a major player in the global minerals market. “This is not just about economic gains,” Kamal concluded. “It’s about contributing to global sustainability efforts and ensuring Pakistan’s place as a responsible and reliable supplier in the international market.”