Pakistan is optimistic about attracting major US investment in the mining and minerals sector, particularly in copper, following a recent trade agreement on reciprocal tariffs with the United States, Dawn reported, citing a report submitted in the National Assembly by Commerce Minister Jam Kamal Khan. Â
The commerce minister shared details with the NA, noting that US authorities have shown interest in investing in Pakistan’s mining sector as part of ongoing negotiations. The newly revised tariff framework will provide an advantage to Pakistan’s copper exports, as refined copper is now exempt from the 50% tariff imposed on copper, iron, steel, and aluminum by the US.
This offers a major opportunity for Pakistan to increase its copper export volume to the US, where demand for copper is expected to rise due to its critical role in clean energy technologies and electric vehicles.
The commerce minister highlighted that Pakistan is the fifth-largest holder of copper reserves globally. However, despite this, the country has not fully capitalised on its mineral resources, mainly due to outdated mining infrastructure and a lack of modern processing capabilities.Â
As part of the strategy to unlock the potential of these resources, the government has tasked the Geological Survey of Pakistan with detailed mapping to identify untapped copper reserves. The government is also working on streamlining regulatory frameworks and addressing infrastructural gaps, such as improving mine access roads and providing dedicated power supplies, in order to attract private-sector involvement and investment.
Currently, Pakistan primarily exports raw copper ores to China, missing out on lucrative markets such as the US, Europe, and the Middle East. The commerce minister stressed that transitioning from exporting raw copper to value-added products, such as refined copper, rods, bars, and alloys, would allow Pakistan to capture more economic benefits from its mineral resources.
Further, the minister noted that by adopting modern technologies for exploration, extraction, and production, Pakistan could enhance both the efficiency and quality of its copper output, making it more competitive in the international market. These efforts would not only contribute to domestic economic growth but also help address global copper shortages.
In addition to the mining sector, Pakistan secured a major tariff reduction for its exports to the US. The US had initially imposed a 29% tariff on Pakistani goods, but after extensive negotiations, the tariff has been reduced to 19%. This new tariff rate is the lowest among Pakistan’s competitors in the US market and is expected to increase Pakistan’s share in the US market, particularly in textiles, a key export sector.
Minister Khan emphasized that strategic investments in copper and mining, along with ongoing efforts to improve export conditions, could significantly reduce Pakistan’s trade imbalance and strengthen its position in the global minerals market.
