US to explore cooperation with Pakistan on critical minerals, hydrocarbons
Why it's important
Washington and Islamabad hailed a trade deal last month, which Pakistan said would result in lower tariffs and increased investment. Pakistan's Commerce Minister Jam Kamal has said Islamabad will offer U.S. businesses opportunities to invest in mining projects primarily in the southwestern Balochistan province through joint ventures with local companies, providing concessions such as lease grants.
Barrick not acting as facilitator between Pakistan, Saudi Arabia for Reko Diq project, says CEO
The province is home to key mining projects, including Reko Diq, run by mining firm Barrick Gold and believed to be one of the world's largest gold and copper mines.
Key quotes
'We look forward to exploring new areas of economic cooperation, including critical minerals and hydrocarbons, and fostering dynamic business partnerships,' Rubio said late on Wednesday.
US market: Pakistan exporters poised to gain notable competitive edge
'The United States deeply appreciates Pakistan's engagement on counterterrorism and trade.'
Context
Before President Donald Trump's administration, Islamabad's relationship with Washington had cooled in recent years, as the U.S. drew closer to Pakistan's traditional adversary India to counter China's rise, among other factors.
Washington also resented Islamabad over Afghanistan, especially under former President Joe Biden's administration, which oversaw a chaotic withdrawal from Afghanistan and the takeover of the country by the Taliban insurgency that Washington accused Islamabad of backing. Pakistan denied the charge.
In recent months, Washington's ties with Islamabad have improved. Trump took credit for a ceasefire between India and Pakistan after the Asian neighbors engaged in hostilities in May following an April attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK).
Pakistan praised Trump while India maintained that New Delhi and Islamabad should resolve their issues directly without outside involvement.
Counterterrorism talks
The U.S. and Pakistan held the latest round of counterterrorism talks in Islamabad on Tuesday. Washington has designated separatist militant group Balochistan Liberation Army as a 'foreign terrorist organization.'
'The US-Pakistan counterterrorism dialogue joint statement is one of the most positive and effusive I've seen from these two countries on CT for quite a few years,' Michael Kugelman, a Washington-based South Asia analyst and writer for Foreign Policy magazine, said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
7 minutes ago
- Business Recorder
US-India trade talks scheduled for August called off, source says
A planned visit by US trade negotiators to New Delhi from August 25-29 has been called off, a source said, delaying talks on a proposed trade agreement and dashing hopes of relief from additional US tariffs on Indian goods from August 27. The current round of negotiations for the proposed bilateral trade agreement is now likely to be deferred to another date that has yet to be decided, the source with direct knowledge of the matter said. The US embassy in New Delhi said it has no additional information on the trade and tariff talks, which are being handled by the United States Trade Representative (USTR). Missed signals, lost deal: How India-US trade talks collapsed India's trade ministry did not immediately reply to a Reuters email seeking comments. Earlier this month, US President Donald Trump imposed an additional 25% tariff on Indian goods, citing New Delhi's continued imports of Russian oil in a move that sharply escalated tensions between the two nations. The new import tax, which will come into effect from August 27, will raise duties on some Indian exports to as high as 50% - among the highest levied on any US trading partner. Trade talks between New Delhi and Washington collapsed after five rounds of negotiations over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases. In India, Trump's tariffs spark calls to boycott American goods India's Foreign Ministry has said the country is being unfairly singled out for buying Russian oil while the United States and European Union continue to purchase goods from Russia.
Express Tribune
4 hours ago
- Express Tribune
Iqbal urges joint push for $100b exports
Federal Minister for Planning, Development and Special Initiatives, Prof Ahsan Iqbal, on Saturday, called upon the government and private sector to work shoulder to shoulder in achieving an ambitious target of $100 billion in exports under what he termed an "export emergency." Speaking at a ceremony titled Marka-e-Haq and 78 years of Independence Day celebrations – Uraan Pakistan – at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Iqbal said Pakistan's economic stability hinged upon export-led growth, tax reforms, and foreign direct investment. He stressed that the business community was the main driver of the economy, and the private sector would play a decisive role in steering the country out of past cycles of instability. The minister said eight sectors had been identified as central to Pakistan's export expansion plan, including hospitality, IT, mining, manpower, blue economy, and creative industries. He urged FPCCI to immediately constitute eight joint working groups with the government to prepare actionable strategies in each sector. "Pakistan has faced severe economic crises in the past two years, but today international institutions are recognising our macroeconomic turnaround," Iqbal said. "We have to ensure that this turnaround becomes sustainable by focusing on exports and productivity." Iqbal likened the current phase to Pakistan's "fourth flight," referring to earlier failed attempts at sustained economic take-off. "The success of this Uraan depends on learning from the past three crashes. If we repeat old mistakes, we will fail again. But if we innovate, reform, and stand united, this time Pakistan will truly fly," he remarked. He stressed that Karachi remained the heart of Pakistan's economy, with FPCCI representing industries and businesses that fuel national growth. He further noted that the tax-to-GDP ratio remained among the lowest in the world, underscoring the urgent need to broaden the tax base. State Minister for Religious Affairs and Interfaith Harmony, Kheal Das Kohistani, also addressed the gathering. He praised the business community for its resilience, saying its role was crucial in strengthening Pakistan's economy. FPCCI President Atif Ikram Shaikh assured full support to the government's export-led strategy. He said global institutions' positive reports had boosted confidence in Pakistan's economy and that the private sector would serve as the government's partner in achieving the $100 billion target. "Through research-based policy inputs, FPCCI will continue providing feedback to the government to align strategies with ground realities," Shaikh noted. He added that new opportunities under Public-Private Partnership (PPP) mode would help accelerate growth. Senior Vice President FPCCI Saqib Fayaz and industrialist Bashir Jan Mohammed also underscored the need for closer cooperation between policymakers and businesses to sustain momentum. SM Tanveer, Patron-in-Chief of the United Business Group (UBG), said Pakistan's $40 billion trade deficit could only be addressed through aggressive export promotion. "The solution is export, export, and only export," he declared. Tanveer highlighted FPCCI's role in pushing down electricity tariffs from Rs48 per unit to Rs31 per unit, though he added the struggle was ongoing to bring rates further down to 9 cents (Rs26 per unit). Lowering interest rates from the current 11% to 6-7%, he said, would save the government Rs3,500 billion annually in debt servicing. He urged the government to focus on "district economy," giving local leadership authority over regional economic planning. "Every district in Pakistan can export its own product and earn foreign exchange. Decentralisation will strengthen the economy," he argued. Separately, FPCCI also hosted the PakistanEthiopia Business Council meeting. Ethiopian Ambassador to Pakistan, Jemal Beker Abdula, noted that Ethiopia's economy was growing at 8.2% annually, presenting opportunities for Pakistani exporters. The FPCCI president reaffirmed that under the government's "Look Africa" initiative, Pakistan would increase exports to African markets. "Pakistan and Ethiopia hold immense untapped trade potential, and FPCCI will act as the government's arm in realising it," he said. Chairman of the PakistanEthiopia Business Council, Ibrahim Khalid Tawab, added that African markets, particularly Ethiopia, were highly attractive for Pakistani exports.
Express Tribune
4 hours ago
- Express Tribune
PSX scales new peak despite profit-taking
Foreign funds would divert their liquidity into buying Pakistan's stocks. This would merely increases prices of shares and be profitable for those who already hold stocks. PHOTO: FILE The Pakistan Stock Exchange (PSX) extended its bullish run in the shortened four-day trading week, with the benchmark KSE-100 index hitting an all-time high of 147,005 points before closing at 146,492, up 1,109 points, or 0.8% week-on-week (WoW). The rally was fueled by robust corporate earnings, Moody's upgrade of Pakistan's sovereign rating to Caa1 and optimism about the declining circular debt in the power sector, though profit-taking capped gains by the week's end. On a day-on-day basis, bulls marched towards 150k on Monday with full excitement as the KSE-100 index breached 146k and ended the day at 146,930, up 1,547 points, in anticipation of a Pakistan-US trade deal. The bourse had a consolidation day on Tuesday where the KSE-100 floated in both directions and ultimately ended at 147,005 (+76 points) by keeping intact the 147k level as investors did some switching-cum-profit-taking. On Wednesday, profit-booking around 148k pushed the index to close negative at 146,529, down 476 points. After the break of the Independence Day, the PSX ended the last session of the week on a flat note, settling at 146,492, down 38 points. During the day, investors largely squared off weekly positions, which kept sentiment mixed and prevented the index from holding above the 147,000 mark. Arif Habib Limited (AHL), in its weekly review, noted that during the four-day trading week, shortened due to the Independence Day holiday, the KSE-100 index maintained its upward trajectory, reaching an all-time high of 147,005 points on Tuesday. The rally was fueled by healthy corporate earnings during the ongoing results season. Furthermore, Moody's upgraded Pakistan's sovereign rating to Caa1 from Caa2, citing improving external buffers, fiscal consolidation and reform progress under the IMF programme. In addition to this, the circular debt in the power sector declined to Rs1,614 billion as of June 2025, AHL said. In July, the auto industry recorded sales of 11,034 units, down 49% month-on-month (MoM) but up 28% year-on-year (YoY). Furthermore, oil production registered an uptick of 0.8% WoW, arriving at 59,604 barrels per day. Production at the Makori East and Nashpa increased during the week. Also, the Pakistani rupee appreciated marginally by 0.14% WoW, closing at 282.06 against the US dollar, it said. The sectors that contributed positively were banks (1,062 points), cement (531 points), auto parts (104 points), auto assemblers (67 points) and investment banks (62 points). Meanwhile, sector-wise negative contribution came from fertiliser (318 points), E&P (214 points), oil marketing companies (159 points), power (102 points) and refinery (43 points). Scrip-wise positive contribution came from Meezan Bank (354 points), Lucky Cement (289 points), HBL (253 points), Bank Alfalah (158 points) and Mari Petroleum (136 points). On the other hand, negative contributors were Fauji Fertiliser Company (313 points), Pakistan Petroleum (198 points), UBL (195 points), OGDC (171 points) and Hub Power (125 points). Average daily volumes arrived at 606 million shares, down 7.2% WoW, while the average traded value settled at $143.8 million, down 13.1%, AHL added. Wadee Zaman of JS Global mentioned that the KSE-100 extended its bullish streak during the outgoing week, touching the high of 147,534 points before slipping into the red on Friday. The index closed at 146,492 points, up 0.8% WoW. Investor sentiment was driven by Moody's upgrade of Pakistan's rating to Caa1 with the outlook changed to stable, reflecting the country's improving external position. On the economic front, he said, the power-sector circular debt dropped to Rs1.6 trillion by the end of June 2025, showing a notable reduction of 33% from last year's level of Rs2.4 trillion. It was largely attributed to the disbursement of Rs801 billion to power producers under the government's stock clearance drive. The Power Division is also expected to present its final proposal for the complete implementation of debt re-profiling with the Chinese independent power producers (IPPs), whose dues currently stand at Rs475 billion. Meanwhile, as per trade data, services' exports rose 9.2% YoY to $8.4 billion in FY25, Zaman said.
