• Aurangzeb pitches minerals as key to balancing trade during US visit
• Highlights tax reforms, privatisation plans, and green initiatives in IMF, IFC talks
• Emphasises economic recovery, climate strategy, and regional trade
WASHINGTON: Finance Minister Muhammad Aurangzeb has said Pakistan’s abundant mineral resources—especially rare earth elements—could play a crucial role in narrowing the $3 billion trade imbalance with the United States. He made these remarks during a discussion at the Atlantic Council, ahead of scheduled US-Pakistan trade talks next month.
Aurangzeb said the upcoming dialogue offers “a real opportunity” to strengthen bilateral economic ties, focusing on trade imbalances rather than the Trump-era tariffs, which he downplayed in importance. “We are looking beyond tariffs,” he stressed, noting that Pakistan’s mineral sector presents a “win-win” for both nations.
He pointed to a recent minerals conference in Islamabad, which drew a high-level US delegation, as a sign of growing cooperation. “Copper and rare earth minerals are vital to modern technology—and Pakistan has significant reserves,” he said.
Domestic Reforms and Revenue Expansion
The finance minister also outlined ongoing domestic reforms aimed at stabilising the economy and increasing revenue. These include digitising the Federal Board of Revenue (FBR), expanding provincial tax efforts, and, for the first time, introducing legislation to tax agricultural income.
He acknowledged Pakistan’s rapid population growth (2.5%) as a major challenge and said the government was looking to Bangladesh’s successful family planning initiatives for inspiration.
Aurangzeb reiterated the government’s commitment to launching Panda Bonds—expected to raise $200–250 million in the fourth quarter of 2025—as a step toward diversifying external financing. He praised recent reforms by global financial institutions that have improved risk assessment and due diligence coordination.
Speaking at an IMF panel during the Spring Meetings in Washington, Aurangzeb emphasized the need to broaden the tax net—especially in agriculture, real estate, retail, and wholesale sectors—proportionate to their GDP share. He also addressed the importance of rebuilding public trust in tax authorities and admitted that introducing an agriculture tax would be difficult, but necessary.
High-Level Engagements
The finance minister held several meetings with global financial leaders during his Washington visit. In talks with Hela Cheikhrouhou, regional vice president of the International Finance Corporation (IFC), he discussed private sector reforms, energy transitions, and municipal finance strategies.
He praised the IFC’s role in securing $2.5 billion in financing for the Reko Diq copper-gold mine—one of Pakistan’s most significant mineral projects.
In a meeting with Robert Kaproth, the US Treasury Department’s assistant secretary, Aurangzeb briefed him on Pakistan’s macroeconomic indicators and reform agenda.
He also addressed a gathering at the US-Pakistan Business Council, engaging with American corporate leaders on topics including regional trade, economic diversification, and sectoral investment opportunities.
Aurangzeb thanked the US delegation for participating in the Pakistan Mineral Investment Forum 2025 and reaffirmed Islamabad’s commitment to deepening cooperation in the mining sector.
Climate and Sustainability Initiatives
In a meeting with Mohamed Nasheed, Secretary General of the Climate Vulnerable Forum (CVF), the minister expressed appreciation for the CVF’s recent visit and its support in helping Pakistan develop a Climate Prosperity Plan.
He noted that climate change, like population growth, remains a long-term threat to Pakistan’s stability, and pledged continued engagement on sustainable development initiatives.
