Pakistan and the United States are set to finalize trade negotiations next week, following a virtual meeting between Finance Minister Muhammad Aurangzeb and U.S. Commerce Secretary Howard Lutnick. The discussions, centered on reciprocal tariffs, aim to address Pakistan’s $3 billion trade surplus with the U.S., which has led to a 29% tariff on Pakistani exports.
To mitigate the tariff impact, Pakistan has proposed increasing imports of U.S. goods, including crude oil, and offering investment opportunities in sectors like mining. A notable project under consideration is the $7 billion Reko Diq copper-gold venture, with the U.S. Export-Import Bank evaluating financing proposals ranging from $500 million to $1 billion.
Both nations have expressed satisfaction with the ongoing negotiations and are optimistic about concluding the trade deal promptly. The agreement is expected to pave the way for a broader strategic and investment partnership, enhancing economic ties between the two countries.
This development follows a series of talks initiated in May, after the U.
S. announced a temporary suspension of the 29% tariffs to allow for negotiations. Pakistan’s proactive approach, including offering a zero-tariff bilateral trade agreement and proposing increased imports of U.S. cotton and soybeans, reflects its commitment to balancing trade relations and fostering economic cooperation.
The anticipated trade agreement is poised to strengthen bilateral economic relations and contribute to regional stability, with both nations aiming to finalize the deal in the coming week.
