Pakistan to offer US firms concessions on mining investment in tariff talks, says minister
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
30 minutes ago
- The Independent
Wise latest to unveil plans to switch main listing from London to New York
British fintech firm Wise has revealed plans to switch its primary listing from London to New York in yet another setback for the City. The money transfer firm said the move would 'help us accelerate our mission and bring substantial strategic and capital market benefits to Wise and our owners'. It wants to drive greater awareness of the brand in the US, which it said was the 'biggest market opportunity in the world for our products'. A primary listing on Wall Street would also give it 'better access to the world's deepest and most liquid capital market', it added. It said the change would benefit the group by 'expanding the pool of investors able to invest in Wise, in particular US domestic institutional and retail investors, the largest global constituent of investors, many of whom are currently unable to hold our shares'. Under the plans, the firm would be dual listed, with a secondary listing in London as part of its 'ongoing commitment to the UK'. Kristo Kaarmann, co-founder and chief executive of Wise, said: 'The UK is home to some of the best talent in the world in financial services and technology, and we will continue to invest in our presence here to fuel our UK and global growth.'
Sky News
an hour ago
- Sky News
Energy costs 'an anchor on our ambition', CBI chief warns government
The head of a major business lobby group is warning that energy bills in the UK are an "anchor" on private sector ambitions, exacerbating the effects of an annual £24bn burden from government costs. CBI boss Rain Newton-Smith was to tell the body's annual business dinner in London that a "serious" plan was needed to address the energy issue, arguing they were holding back investment and the country's competitiveness. A reliance on natural gas has meant that both households and businesses have been exposed to volatile prices since Russia's invasion of Ukraine. The CBI says UK companies pay 50% more for their energy than counterparts in France and Germany - and four times more than comparable operators in the US and Canada. Ms Newton-Smith was to tell her audience of business leaders and politicians that 40% of UK firms were holding back on investment due to punitive energy costs alone. She argued they were on top of an estimated extra £24bn a year in tax and wage hikes imposed by government. They included three increases to minimum pay rates since the 2023/24 financial year and rises to employer national insurance contributions which came into force in April. 3:15 The CBI said Ms Newton-Smith will say: "Business is now straining under £24 billion in extra costs per year. "That's more than the cost of Crossrail. More than the Home Office budget - on business, every year." She will add: "With costs running so high, there is one issue we absolutely must tackle. "Without it, any industrial strategy, any serious plan for economic security will fall flat on its face. Energy." She will say the rising cost of energy "isn't just a cost issue". "It's a jobs issue. An investment issue. A security issue. "Because how can UK business compete with one hand tied behind its back - and the other straining to keep the lights on? "This is an anchor on our ambition. A crack in our economic security. And it must be fixed." The CBI's suggestions include removing policy costs from electricity bills and a focus on low-carbon energy to help achieve economic security. The latter wish has formed the centrepiece of the Labour government's approach, arguing that a push for renewable energy is a key pathway to bring down bills, emissions and grow the economy at the same time. A government spokesperson said: "Through our sprint to clean power, we will get off the rollercoaster of fossil fuel markets - protecting business and household finances with clean, homegrown energy that we control.
Telegraph
an hour ago
- Telegraph
UK fintech champion to ditch main listing in London for US
The £1bn fintech champion Wise is to abandon its primary listing in Britain for the US, dealing a blow to London's beleaguered stock market. Wise told investors on Thursday that it would move its main listing to the US, claiming it would help the company grow faster and attract more investment. It will be seen as a snub to the London Stock Exchange (LSE), which has been battling an exodus of companies amid concerns over poor liquidity and excess governance. Kristo Käärmann, Wise's chief executive said: 'We believe the addition of a primary US listing would help us accelerate our mission and bring substantial strategic and capital market benefits to Wise and our owners'. He claimed the US was 'the biggest market opportunity in the world for our products.' The international payments firm debuted on the LSE in 2021. Its shares have risen by around 20pc since then. It said retail and institutional investors in the US were currently unable to buy shares and said the move would allow current shareholders 'greater flexibility' – as well as potentially allowing it to be included in American indices.
