Washington/Islamabad – Pakistan’s Finance Minister, Muhammad Aurangzeb, has stated that the country’s abundant mineral resources could play a crucial role in addressing the existing trade imbalance with the United States.
As both countries prepare for trade talks next month, the minister highlighted that the real issue lies not in tariffs, but in the substantial trade deficit, which currently stands at around $3 billion.
Speaking at the Atlantic Council think tank in Washington, Mr. Aurangzeb remarked that the focus of the upcoming US-Pakistan talks will be to tackle the trade imbalance, particularly in light of the trade barriers that were introduced during the Trump administration.
He pointed out that these talks present an invaluable opportunity for both nations to engage in a constructive dialogue across a variety of topics.
“We see the mineral sector as a key area that can offer mutual benefits for both the United States and Pakistan,” the Finance Minister noted, referencing a recent minerals conference held in Islamabad that was attended by a senior US delegation.
This sector, he argued, could be pivotal in balancing the trade scales between the two countries.
In particular, the minister pointed to copper as an essential mineral in meeting global technological demands.
He underscored that Pakistan’s resources could help mitigate the global shortage of precious minerals.
Additionally, he highlighted the growing US interest in rare earth elements and stressed that Pakistan is well-positioned to contribute significantly to the global supply of these vital minerals.
By shifting the focus beyond just tariff negotiations, Mr. Aurangzeb suggested that Pakistan is seeking a broader and more lasting partnership with the US, centered around its mineral wealth and its role in global supply chains.
Reforms and Economic Strategies
During his time in Washington, Mr. Aurangzeb also spoke about the government’s ongoing reforms to strengthen the country’s tax system.
These reforms include digitalizing the Federal Board of Revenue (FBR), expanding provincial tax collections, and implementing legislation that would enable provinces to tax agricultural income for the first time.
The minister also mentioned Pakistan’s growing commitment to addressing long-term challenges such as climate change and the country’s high population growth rate of 2.5%, which is straining resources.
Reflecting on the success of Bangladesh’s family planning program, Mr. Aurangzeb expressed a willingness to learn from its model, acknowledging that Pakistan’s population growth rate was too high and posed an existential challenge for the country.
He also highlighted the government’s ambition to launch Panda Bonds, with an expected range of $200 to $250 million, which are set to debut in the fourth quarter of the year.
The bond issuance would mark another step in Pakistan’s efforts to tap into international markets for financing.
Read More: Finance Minister Departs for US to Attend WB IMF Spring Meetings
Additionally, the minister participated in a panel discussion at the International Monetary Fund’s (IMF) Spring Meetings, where he discussed Pakistan’s strategy to enhance its revenue base.
This includes increasing contributions from agriculture, real estate, retail, and wholesale sectors in line with their share of the GDP.
He also addressed the critical need to transform the FBR by improving its workforce skills and technological capabilities.
Given the current lack of trust in the government’s tax machinery, implementing the new agricultural tax could be a challenge, but Mr. Aurangzeb reaffirmed the government’s commitment to pursuing these reforms, which are critical for Pakistan’s fiscal health.
Meetings and International Engagements
In addition to his speeches and discussions, Mr. Aurangzeb met with key international stakeholders, including Hela Cheikhrouhou, the regional vice president of the International Finance Corporation (IFC).
Their discussions centered on private sector reforms, the energy transition, and initiatives aimed at achieving full employment.
They also reviewed progress on the Diversified Payment Rights project and commended the IFC’s role in securing $2.5 billion in financing for the Reko Diq Copper and Gold Mine project.
The finance minister also held a meeting with Robert Kaproth, the assistant secretary of the US Department of Treasury, where he provided updates on Pakistan’s macroeconomic indicators and strategies for improving the economy.
Earlier, Mr. Aurangzeb engaged with US corporate leaders at a luncheon hosted by the US-Pakistan Business Council, discussing Pakistan’s economic progress and the potential for regional trade, market diversification, and sectoral expansion.
He also thanked the US delegation for their participation in the Pakistan Mineral Investment Forum 2025, reaffirming Pakistan’s dedication to continued collaboration with the US in the mining and minerals sectors.
Also Read: Minister meeting IMF, World Bank Heads Focus on Growth, Reforms
Finally, during a meeting with Mohamed Nasheed, the Secretary General of the Climate Vulnerable Forum and Vulnerable 20, Mr. Aurangzeb commended the CVF’s support in developing a Climate Prosperity Plan for Pakistan and highlighted the significance of addressing the environmental challenges the country faces.
