Pakistan expects major US investment in mining sector after tariff deal

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Pakistan’s long-underutilized mineral wealth may finally get the global spotlight it deserves. A landmark tariff deal with the United States has opened the door to major American investment in the country’s mining sector, particularly in copper — a metal at the heart of the clean energy revolution. 

A Turning Point for Pakistan’s Copper Industry 

Commerce Minister Jam Kamal Khan told the National Assembly that during negotiations on reciprocal tariffs, US officials expressed keen interest in investing in Pakistan’s mines and minerals. Copper emerged as the key focus, given its indispensable role in renewable energy systems, electric vehicles, and global infrastructure. 

The US had previously imposed a 50% tariff on imported metals, including copper, iron, steel, and aluminum. But under the new arrangement, refined copper from Pakistan will now be exempt from that hefty duty — a move Khan described as a “game-changer” for value-added exports. 

From Raw Ore to Value-Added Exports 

Despite ranking fifth globally in copper reserves, Pakistan has historically exported raw copper ore — especially to China — and it has been missing out on the higher profits that come from refined products like  

• copper bars 

• rods 

• alloys

Factors that held the sector back 

• Outdated mining methods 

• Inadequate refining capacity 

• Infrastructure gaps have all held the sector back

The new strategy is clear: move away from raw exports and focus on processing minerals domestically to capture greater economic returns. “Value addition is the key to reducing our trade deficit and boosting our standing in global markets,” Khan emphasized. 

Read more: Balochistan seeks Chinese investment to expand mineral processing and copper exports

Unlocking Untapped Potential 

To support this shift, the Geological Survey of Pakistan will conduct advanced mapping to locate new reserves. Infrastructure upgrades — from mine access roads to dedicated power supplies — will be rolled out to get most of the attraction from both domestic and foreign investors. 

These steps, Khan said, will not only make Pakistan more competitive internationally but also ensure that its mineral sector becomes a steady engine for economic growth. 

Global Demand on the Rise 

The timing couldn’t be better. As the world is moving speedily towards clean energy, copper demand is expected to jump and hit the skies. Wind turbines, solar panels, and electric vehicles all require vast amounts of the metal.

If the copper industry is developed in Pakistan by strategy, Pakistan will be capable of meeting this growing demand while securing new markets beyond its traditional buyers. 

The tariff negotiations didn’t just benefit minerals. The US also lowered duties on Pakistani exports overall — from 29% to 19% — the lowest among competitors. This reduction is expected to significantly enhance Pakistan’s competitiveness in textiles and other sectors in the US market. 

“This is not just about trade numbers,” Khan concluded. “It’s all about positioning Pakistan as a sensible, reliable supplier, contributing to global sustainability efforts, and fully harnessing the economic promise of our natural resources.”