ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are holding a key round of economic review talks, with Finance Minister Muhammad Aurangzeb set to join the policy-level discussions, officials said on Monday.
During the talks, Pakistan will brief the IMF on the potential economic impact of its new five-year tariff policy and the progress of the Reko Diq Copper and Gold Mine Project. Discussions are also expected to cover the impact of recent floods on growth, tax revenues, and development targets.
According to officials, the total cost of the Reko Diq project has surged from $4.3 billion to $7.72 billion. In its first phase, the project aims to produce 200,000 metric tons of copper annually, with completion expected in 2029. The second phase, scheduled to begin in 2034, will require an additional $3.3 billion investment and expand production to 90 million tons per year.
The Reko Diq project is jointly owned by Canada’s Barrick Gold Corporation (50%), while the remaining shares are held by the federal and Balochistan governments. Officials said the project is expected to generate a net cash flow of $70 billion over 37 years, making it a potential “game changer” for Pakistan’s economy.
$70b net cash flow expected from Reko Diq project
The IMF delegation was informed that under the new National Tariff Policy (2025–30), Pakistan plans to gradually reduce import duties to encourage exports and attract investment. The policy aims to lower the average tariff rate from 20.19% to 9.70% over five years and eliminate regulatory and additional customs duties within four to five years.
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Officials said the tariff cuts will make imported goods, including automobiles, cheaper in Pakistan. Although the policy may widen the trade deficit in the short term, the government believes it will strengthen the overall economy through export growth and increased investor confidence.
