Islamabad Eyes Mineral Wealth to Bridge Trade Gap with Washington
Key Takeaways:
i) Pakistan’s Finance Minister highlights the country’s rich mineral resources as a key to correcting the $3 billion trade imbalance with the United States.
ii) Upcoming trade talks between Pakistan and the US will prioritize collaboration in the minerals sector, following a recent minerals conference in Islamabad.
iii) The Pakistani government is also focused on broader economic reforms, including tax base expansion and addressing challenges like climate change and population growth.
Washington, USA – Finance Minister Muhammad Aurangzeb has identified Pakistan’s extensive mineral wealth as a critical asset in addressing the existing trade imbalance with the United States. Speaking on Tuesday, the minister emphasized the potential for collaboration in the minerals sector during upcoming trade discussions between the two nations.
Pakistan’s current trade deficit with the US stands at $3 billion, a figure the government is actively seeking to rectify. Aurangzeb pointed to the recent minerals conference held in Islamabad, which saw participation from a US delegation, as a positive sign of potential cooperation. “Pakistan is ready and willing to work with the US to improve our trade relationship, and our mineral resources offer a significant opportunity,” he stated.
Beyond the focus on minerals, the Finance Minister also addressed the ongoing economic reforms within Pakistan. These include efforts to broaden the tax base through the digitalization of the Federal Board of Revenue (FBR) and the introduction of provincial taxes on agricultural income. The government is also tackling challenges such as climate change and population growth, with Aurangzeb noting a commitment to learning from Bangladesh’s successful family planning initiatives.
Discussions with international financial institutions and US officials have also centered on private sector reforms, the energy transition, and Pakistan’s overall macroeconomic indicators.
