Pakistan Eyes as Strategic Mineral Exporter Like Indonesia Nickel Model

Islamabad: Finance Minister Muhammad Aurangzeb, addressing the Lahore Chamber of Commerce, spotlighted the Reko Diq gold and copper project as a linchpin for Pakistan’s export-led growth strategy, drawing a direct parallel with Indonesia’s success in nickel exports.

“Copper is to us what nickel has been to Indonesia,” he remarked, citing Indonesia’s $22 billion earnings in 2024 from nickel exports.

🔹 Reko Diq Project

• Production Start: Expected by 2028

• Export Potential: ~$2.8 billion annually (~10% of current export base)

• Strategic Value: Copper crucial for global energy transition

• Positioned as a flagship resource to improve Pakistan’s balance of payments and catalyze industrial growth

📉 Macroeconomic Stabilization Signals

• Inflation & Interest Rates: Noted decline in policy and KIBOR rates

• Debt Servicing: Reduced costs for corporates

• Stock Market: Viewed as a shallow but improving indicator, not yet reflective of broader economic performance

💬 On Fiscal & Structural Reforms

🧾 Tax Reform & IMF Talks

• IMF Program: Negotiations progressing positively

• Tax-to-GDP Target: Raised from current 9-10% to 13%

• Sustainability Goal: “If we broaden the tax base, this will be the last IMF program,” he stated

📲 Tax Filing Reform

• Plans underway to simplify income tax filing for the salaried class via mobile-based filing system

✈️ Privatization Push

• PIA Update: Fresh Expressions of Interest (EOIs) for the sale of Pakistan International Airlines (PIA) to be floated this month

🌍 Export Diversification & Diplomacy

• Ethiopia expressed interest in importing Pakistani products during the Made in Gujranwala Expo 2025

• FM Aurangzeb stressed: “Every single sector has to export”, indicating a national pivot toward comprehensive trade expansion

🧭 Strategic Context