Pakistan plans to offer investment concessions to American companies in its mining sector as part of upcoming trade negotiations with the United States, Commerce Minister Jam Kamal told Reuters, amid discussions over Washington’s proposed tariff measures.

The move comes as Islamabad seeks to offset a potential 29% tariff on its exports to the U.S., imposed following a reported $3 billion trade surplus with the world’s largest economy. The tariffs, announced last month, have been temporarily suspended for 90 days to allow for negotiations.

Kamal said the government will invite U.S. companies to invest in mining projects in Balochistan through joint ventures with local firms, offering incentives such as lease grants. The concessions would be presented during the upcoming tariff discussions with U.S. officials.

In addition to mining, Pakistan is aiming to increase imports from the United States, especially of cotton and edible oils, commodities currently in short supply locally.

“There is untapped potential for U.S. companies in Pakistan, from mining machinery to hydrocarbon ventures,” Kamal said during the interview.

He did not provide specific details about the bidding process or the number of mining blocks available for U.S. investment.

Pakistan’s largest mining initiative, the Reko Diq copper and gold project in Balochistan, is currently seeking up to $2 billion in financing, including between $500 million and $1 billion from the U.S. Export-Import Bank. Term sheets are expected by the third quarter of this year, according to project officials.

The mine is projected to generate $70 billion in free cash flow and $90 billion in operating cash flow over its lifetime.

Kamal added that the federal government plans to gradually lower tariffs in the upcoming 2025–26 budget. The United States has yet to specify which sectors it sees as priorities in the trade talks. The U.S. Embassy in Islamabad did not immediately respond to a request for comment.