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Pakistan to offer mining concessions to US firms to offset

tariffs

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Budget to lower import tariffs in Pakistan

By Ariba Shahid

ISLAMABAD, May 23 (Reuters) - Pakistan plans to offer

concessions to U.S. companies to invest in its mining sector as

part of negotiations with Washington over tariffs, its commerce

minister told Reuters, as Islamabad seeks to capitalize on the

Trump administration's interest in boosting trade with South

Asia.

Pakistan faces a potential 29% tariff on exports to the

United States due to a $3 billion trade surplus with the world's

biggest economy, under tariffs announced by Washington last

month on countries around the world. Tariffs were subsequently

suspended for 90 days so negotiations could take place.

Pakistan's Commerce Minister Jam Kamal said that Islamabad

will offer U.S. businesses opportunities to invest in mining

projects primarily in Pakistan's Balochistan province through

joint ventures with local companies, providing concessions like

lease grants.

The minister said that would be in addition to efforts to

increase imports from the United States, particularly cotton and

edible oils, which are currently in short supply in Pakistan.

Pakistan would put its offer of concessions for mining

investment to U.S. officials during talks over tariffs in the

coming weeks.

Kamal did not give further information on the bidding

process of these mines or other details.

"There is untapped potential for U.S. companies in Pakistan,

from mining machinery to hydrocarbon ventures," he said in an

interview with Reuters conducted on Thursday.

Pakistan's Reko Diq copper and gold mining project in

Balochistan seeks up to $2 billion in financing, including $500

million to $1 billion from the U.S. Export-Import Bank, with

term sheets expected by early in the third quarter of this year,

its project director told Reuters last month.

The mine could generate $70 billion in free cash flow and

$90 billion in operating cash flow over its lifespan.

U.S. President Donald Trump has said that he's working on

"big deals" with both India and Pakistan, following Washington's

key role in brokering a ceasefire between Pakistan and India

earlier this month following the worst fighting in decades

between the nuclear-armed neighbours.

"The previous U.S. administration focused more on India, but

Pakistan is now being recognised as a serious trade partner,"

Kamal said.

Pakistan will gradually lower tariffs in its upcoming

federal budget, Kamal said.

He said that the United States has not specified trade

barriers or priority sectors. The U.S. Embassy in Islamabad did

not immediately respond to a request for comment.