Finance Minister Muhammad Aurangzeb says mining could contribute around 10% of existing goods exports as Pakistan builds on macroeconomic stability and pursues structural reforms.
ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb has described the minerals and mining sector as a key driver of Pakistan’s sustainable economic growth, export expansion and foreign investment, saying a single major mining project could generate $2.8 billion in annual export proceeds once commercial operations begin.
Addressing the two-day Pakistan Minerals Investment Forum 2026 (PMIF26) on Thursday, the finance minister said Pakistan had made significant progress towards macroeconomic stability and was now focusing on sustainable, export-led growth through structural reforms and investment in productive sectors.
Highlighting economic achievements, Aurangzeb said the country had reduced its twin deficit from around 12.5% of gross domestic product (GDP) a few years ago to 2.6% by the end of June 2026. The fiscal deficit had reached a 22-year low, while Pakistan had recorded primary surpluses for three consecutive years.
He said foreign exchange reserves had increased to $21.5 billion, providing slightly more than three months of import cover. The stronger external position had helped the country withstand economic challenges, including the October 2025 floods and the ongoing Gulf conflict.
The minister also highlighted three international credit rating upgrades since April 2025 and Pakistan’s return to international capital markets.
The country raised $750 million through a private placement in April 2026, issued its inaugural Panda bond in China in May and secured $3 billion through Eurobonds in September. The Eurobond offering attracted bids worth twice the amount offered.
Structural reforms and export-led growth
Aurangzeb stressed that sustaining economic stability required structural reforms rather than temporary measures. The government was pursuing reforms in taxation, energy, public finance, pensions and tariffs, alongside privatisation and a reduced role for inefficient state-owned enterprises.
He said 26 state-owned entities had been transferred to the Privatisation Commission to encourage greater private-sector participation.
The government was targeting economic growth of 4% during the current fiscal year, following growth of nearly 3.7% last year. IT services exports were also expected to reach around $5 billion.
The minister said Pakistan would avoid import-dependent, consumption-driven growth and instead support exporters through lower taxation and financing rates ranging from 4.5% to 6%.
He emphasised that predictable policies, macroeconomic stability and the ability to repatriate profits and dividends were essential to attracting foreign direct investment.
Mining project could boost exports by 10%
Turning to mineral resources, Aurangzeb said a major mining project was expected to generate $2.8 billion in export proceeds once commercially operational, equivalent to around 10% of Pakistan’s existing goods exports.
Although the project had experienced delays, he expressed confidence in its financing arrangements, describing its syndicated financing as the largest in Pakistan’s history.
He also highlighted the potential of the Tethyan Belt, saying Pakistan’s mineral wealth could help address an anticipated global copper shortage as countries accelerate their transition towards clean energy.
Aurangzeb said the minerals and mining industry could transform Pakistan’s economic outlook by strengthening exports, attracting international investment and supporting long-term sustainable growth.