Following the conclusion of a successful bilateral tariff deal with the US, the federal government of Pakistan anticipates a sizable uptick in investment inflows directed towards Pakistan’s mines and minerals sector. According to reports, Islamabad expects mineral exports, especially copper exports, to jump significantly.

Commerce Minister Jam Kamal Khan’s latest report to the National Assembly has also revealed that the US expressed interest to invest in mining operations in Pakistan during Pak-US negotiations or reciprocal tariffs. As per the Commerce Minister, it would be “advantageous to export value-added copper (refined) to the US market” as copper exports from Pakistan have not been hit with the 50 percent tariff which other elements such as iron, steel and aluminium have been slapped with.  

Moreover, the Commerce Minister indicated that Pakistan possessed sizable mineral deposits which it could leverage to reduce its balance of trade deficit with its trading partners. The Minister also claimed that Pakistan ranked fifth in terms of copper reserves. However, it merits a mention that this “rank” was likely based on Pakistan’s broader resource potential. In terms of proven reserves, Pakistan actually ranks 18th, with 12.3 million metric tons, according to data from reports.

The minister has suggested that copper is in high demand in the international market as it is a critical component in technologies such as renewable energy devices and electric vehicles. Reports reveal that despite possessing a sizable amount of reserves, they have remained largely untapped owing to suboptimal investment levels into mining infrastructure and processing facilities.

Currently, Pakistan exports the vast majority of its copper ore directly to China, causing the country to miss out on potential exports to the US, the Middle East, and Europe. According to the Commerce Minister, Pakistan could capitalize on the high demand and consequently highlighted “the need for strategic development in the mining sector”.

He suggested that Pakistan could increase its competitiveness in the global market by investing into technologies that will unlock efficient exploration and extraction of minerals. The Minister’s report revealed that the federal government, in collaboration with the US, would play a key role in transforming Pakistan’s mining sector.

Reports suggest that the Geological Survey of Pakistan has already been ordered to conduct geological mappings to discover untapped reserves. As per the Commerce Minister, Pakistan will focus its efforts to transition from exporting raw ores to exporting refined copper, alloys, rods, and bars, which will reportedly allow it to attain higher economic benefits from its mineral reserves.