The government is preparing a major fiscal incentive package to attract foreign investment in Pakistan’s copper and gold reserves, estimated at $8 trillion, under the proposed National Mineral Policy 2026.
The proposed package, developed using a model by consultancy Wood Mackenzie, includes tax reductions, exemptions and deferred payments to improve the financial viability of mining projects. The measures are expected to be presented to international investors at the Pakistan Minerals Investment Forum (PMIF) on November 12 and 13, subject to approval from the Finance Division.
Key proposals include a 30-year general sales tax exemption on goods and services used in mining projects, relief from import duties on machinery and equipment, and reduced withholding tax rates. The government is also considering replacing conventional corporate income tax with a 1% presumptive tax on export proceeds, along with a 0.5% development surcharge.
The proposed framework also includes a 30-year super tax exemption, a 15-year withholding tax exemption on dividends, indefinite carry-forward of exploration losses and accelerated depreciation allowances. The measures aim to provide long-term fiscal stability and encourage investment in large-scale mining projects.
