ISLAMABAD: The government is expecting significant investment in Pakistan’s mines and mineral sector and export of copper following the recent bilateral tariff deal with the United States, it emerged on Sunday.
During negotiations of the Pakistani team with the US authorities on reciprocal tariffs, the US side has showed interest to invest in the mines and minerals, including copper, Commerce Minister Jam Kamal Khan revealed in the latest report placed before the National Assembly.
As the US administration had imposed 50pc tariffs on import of copper, iron, steel and aluminum but subsequently refined copper was exempted from the 50pc tariff, “it will be more advantageous to export value-added copper (refined) to the US market”, the minister claimed.
Pakistan was endowed with substantial mineral resources, ranked fifth globally in terms of copper reserves, which had the potential to significantly reduce the country’s trade imbalance with the world, the minister said. He stated copper, a critical component in global technological advancements, especially in renewable energy systems and electric vehicles, was in high demand worldwide. But despite these vast reserves, the country has not fully capitalised on its mineral wealth due to a lack of investment in modern mining infrastructure and processing capabilities.
Geological Survey of Pakistan has been tasked with detailed geological mapping to identify untapped reserves, commerce minister says
At present, Pakistan exports raw copper ores primarily to China, while missing out on lucrative markets like the US, Europe, and the Middle East. “This underutilisation of its copper resources highlights the need for strategic development in the mining sector,” the commerce minister said, adding that Pakistan could enhance production efficiency and product quality by investing in advanced technologies for exploration and extraction, thereby increasing its competitiveness in the international market.
Mr Kamal reported that the government would play a crucial role in facilitating this transformation with the US investment and support. In this regard, the Geological Survey of Pakistan has been tasked with a detailed geological mapping to identify untapped reserves. The government would also be swiftly streamlining regulatory frameworks and addressing infrastructural gaps, such as mine access roads and dedicated power supply to attract private sector involvement and technological innovation.
The commerce minister said market reports suggested that global demand for copper would surge in the coming years, driven by its indispensable role in clean energy technologies. “Pakistan’s strategic development of its copper sector could not only meet domestic economic goals but also contribute to alleviating global shortages,” he said, adding that by focusing on value-added exports, such as refined copper, bars, rods, and alloys, rather than raw ores, Pakistan could capture greater economic benefits from its mineral resources.
“Through strategic investments and the adoption of modern technologies, Pakistan can unlock the full potential of its mineral resources. This would not only boost its export earnings but also position the country as a responsible and reliable supplier in the international minerals market, contributing to both national development and global sustainability efforts,” he said.
In response to the United States’ announcement of reciprocal tariffs on all countries, the government engaged with the relevant US authorities for reaching an understanding and reversing and changing the decision of reciprocal tariffs on Pakistan’s exports to US market, he said.
“After hectic negotiations with US authorities, the US has agreed to a tariff rate of 19pc, instead of earlier 29pc, on Pakistan’s exports to the US, which is lowest amongst Pakistan’s competitors in the US market” which now had the potential to increase share in the US market especially in textiles. The new tariff rates on Pakistan and other comparative economies will be instrumental in enhancing Pakistani goods penetration in the highly competitive US market.
Published in Dawn, August 11th, 2025