Mineral incentive package on cards

The government is preparing a fiscal package for the National Mineral Policy 2026, with proposals intended to draw investment into copper and gold deposits estimated at $8 trillion. The Express Tribune reported that the measures could be presented to overseas investors at the Pakistan Minerals Investment Forum on November 12-13. A Wood Mackenzie model includes reduced withholding tax rates of 4% on local goods and 8% on local services, with payment deferred until mining begins.

Other proposals include a 30-year GST exemption during exploration and development, relief from import duties on project equipment, and a 1% tax on export proceeds plus a 0.5% development surcharge instead of corporate income tax. The package also outlines long-term exemptions from super tax and dividend withholding tax, fiscal stability protections, and tax treatment for exploration losses and depreciation. The proposals still require Finance Division approval, after an earlier attempt to include incentives in the budget did not produce a comprehensive programme.