During his address to the Lahore Chamber of Commerce, Finance Minister Muhammad Aurangzeb highlighted the significance of the Reko Diq copper and gold project. He stated that this project could transform Pakistan into an export-driven economy. Aurangzeb highlighted that copper is essential for energy transition and mentioned a global shortage of this critical metal.
The Reko Diq mine is anticipated to start production by 2028, with the potential to generate a remarkable $2.8 billion in annual exports. This would represent a 10% increase in Pakistan’s current export levels. Aurangzeb noted, “Copper is to us, what nickel has been to Indonesia,” referring to Indonesia’s $22 billion earnings from nickel exports in 2024.
Furthermore, the finance minister revealed that macroeconomic indicators are improving. He pointed to a decline in inflation and lower policy rates, which have significantly reduced companies’ debt servicing costs. Although he acknowledged the volatility of the stock market, he views it as a key data point for assessing economic health.
Aurangzeb also discussed efforts to broaden the tax base and increase the tax-to-GDP ratio to achieve fiscal sustainability. He mentioned upcoming relief measures for the salaried class and plans to simplify income tax forms for easier filing. Additionally, he announced that new expressions of interest for selling Pakistan International Airlines (PIA) would be published this month.