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
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Production Start: Expected by 2028
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Export Potential: ~$2.8 billion annually (~10% of current export base)
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Strategic Value: Copper crucial for global energy transition
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Positioned as a flagship resource to improve Pakistan’s balance of payments and catalyze industrial growth
📉 Macroeconomic Stabilization Signals
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Inflation & Interest Rates: Noted decline in policy and KIBOR rates
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Debt Servicing: Reduced costs for corporates
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Stock Market: Viewed as a shallow but improving indicator, not yet reflective of broader economic performance
💬 On Fiscal & Structural Reforms
🧾 Tax Reform & IMF Talks
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IMF Program: Negotiations progressing positively
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Tax-to-GDP Target: Raised from current 9-10% to 13%
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Sustainability Goal: “If we broaden the tax base, this will be the last IMF program,” he stated
📲 Tax Filing Reform
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Plans underway to simplify income tax filing for the salaried class via mobile-based filing system
✈️ Privatization Push
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PIA Update: Fresh Expressions of Interest (EOIs) for the sale of Pakistan International Airlines (PIA) to be floated this month
🌍 Export Diversification & Diplomacy
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Ethiopia expressed interest in importing Pakistani products during the Made in Gujranwala Expo 2025
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FM Aurangzeb stressed: “Every single sector has to export”, indicating a national pivot toward comprehensive trade expansion
🧭 Strategic Context
| Area | Reform Direction |
|---|---|
| Mining | Transitioning copper into a strategic export commodity (Reko Diq) |
| Trade Policy | Diversification and regional market outreach |
| Tax System | Digitization, simplification, and expansion of tax base |
| Privatization | Accelerated efforts to divest from loss-making SOEs (e.g., PIA) |
| IMF Engagement | Aiming for final compliance-driven exit strategy |
