Pakistan is planning to offer special concessions to American companies for investment in its mining sector, especially in Balochistan, as part of trade negotiations with the United States. Commerce Minister Jam Kamal revealed the strategy during an interview with Reuters, stating it aims to ease a potential 29% tariff on Pakistani exports.
The tariffs, announced last month by the US government due to Pakistan’s $3 billion trade surplus, were suspended for 90 days to allow time for talks. Kamal said Pakistan will present the mining investment incentives in upcoming discussions with US officials.
The proposed incentives include joint venture opportunities with local companies, lease grants, and a broader push to import more American goods, such as cotton and edible oils—products currently in short supply within Pakistan.
In addition to boosting trade, Pakistan is eyeing large-scale investments like the Reko Diq copper and gold project. Located in Balochistan, Reko Diq seeks up to $2 billion in financing and is engaging with the US Export-Import Bank for possible funding. The mine could generate up to $90 billion in operating cash flow over its life span.
Minister Kamal noted that under the Trump administration, Pakistan is being viewed as a more serious trade partner compared to past US policies that focused more on India. “There is untapped potential for US companies in mining and energy sectors,” he added.
Looking ahead, Pakistan plans to gradually lower tariffs in its upcoming federal budget to attract further international trade and investment. However, Kamal confirmed that the US has not yet specified which trade barriers or sectors it wishes to prioritize.