• Minister highlights FBR reforms, privatisation in talks with IMF, global creditors
• Briefs US official on economic recovery
WASHINGTON: Finance Minister Muhammad Aurangzeb has said Pakistan’s vast mineral resources could help fix the trade imbalance with the US, as both countries were set to hold trade talks next month.
Speaking at the Atlantic Council think tank in Washington, Mr Aurangzeb downplayed the significance of new tariffs introduced by the Trump administration. He said the real issue was “trade imbalance “.
He added that the US-Pakistan talks in Washington next month will focus on addressing trade imbalances and US tariffs.
The upcoming talks, he noted, would present “a real opportunity” for the two countries to “engage constructively on a broad range of issues”.
He indicated that Pakistan was ready to address the trade imbalance with the US, which stood at $3bn, during the forthcoming discussions.
The minister referenced the minerals conference held in Islamabad earlier this month, which was attended by a high-level US delegation.
“We believe the minerals sector could create a win-win situation for both the United States and Pakistan,” Mr Aurangzeb said, indicating this sector could help address the trade imbalance.
He noted that copper was a “critical component” in meeting global technological needs and emphasised Pakistan’s potential role in addressing the global shortage of precious minerals.
“The US is particularly interested in rare earth minerals, and we have significant resources to contribute in this area,” the minister added, stressing that Pakistan was “looking beyond tariff discussions” in its engagement with the US.
Reforms
During the discussion, the minister highlighted reforms being implemented by the government to widen the tax base, including the digitalisation of the Federal Board of Revenue (FBR), expanding provincial tax collections and the first-ever legislation by provinces to tax farm income.
Mr Aurangzeb also underscored existential challenges posed by climate change and population growth.
He acknowledged that Pakistan’s 2.5 per cent population growth rate was too high, and the government was willing to learn from Bangladesh, which had successfully implemented an effective family planning program.
The minister emphasised the government’s commitment to the inaugural launch of Panda Bonds and praised reforms in multilateral institutions aimed at ensuring a coordinated approach to risk analysis and due diligence.
In an interview with Bloomberg, the minister said the bond, in the range of $200 to $250 million, will likely be lauched in the fourth quarter of this year, the minister added.
He also participated in a panel discussion on “Revenue Mobilisation in the Medium Term,” organised by the International Monetary Fund (IMF) during the 2025 Spring Meetings in Washington, D.C.
He highlighted Pakistan’s measures to increase the tax base, including more contributions from agriculture, real estate, retail, and wholesale sectors in line with their share of GDP.
He also discussed efforts to transform the FBR by enhancing the skills of its workforce and technological capabilities.
The minister underscored the critical importance of trust between the tax collection agency and the public.
He acknowledged that, given the current lack of trust in the government’s tax machinery, implementing the new agricultural tax would be a challenge. However, he stressed the government was committed to pursuing its reform.
Meetings
Earlier, the minister met with Hela Cheikhrouhou, the regional vice president of the International Finance Corporation (IFC), to discuss private sector reforms, energy transition, sound municipal finance, and full employment initiatives.
He reviewed progress on Diversified Payment Rights and commended the IFC’s key role in securing $2.5 billion in debt financing for the Reko Diq Copper and Gold Mine project.
The finance minister also met Robert Kaproth, the US Department of Treasury assistant secretary, and briefed him on Pakistan’s macroeconomic indicators.
Earlier, at a luncheon hosted by the US-Pakistan Business Council at the US Chamber of Commerce, the finance minister engaged with American corporate leaders, discussing Pakistan’s economic progress.
He emphasised the importance of regional trade, market diversification, and sectoral expansion.
He also thanked the US delegation for participating in the Pakistan Mineral Investment Forum 2025 and reiterated Pakistan’s commitment to continued collaboration in the mining and minerals sector.
In a meeting with Mohamed Nasheed, the secretary general of the Climate Vulnerable Forum and Vulnerable 20, Mr Aurangzeb appreciated the recent visit of the CVF Secretariat team to Pakistan.
He also hailed the support by CVF in developing a Climate Prosperity Plan.
Published in Dawn, April 23rd, 2025
