Pakistan reached a much-expected trade agreement with the United States on Thursday ahead of US President Donald Trump’s deadline of August 1, which was to expire Friday (tomorrow) -Howing Washington imposes a higher duty against the countries on a mutual basis.
The development came when Finance Minister Muhammad Aurangzeb reached a breakthrough with the Trump administration at a meeting with US trade secretary Howard Lutnick and US Trade Representative Ambassador Jamieson Greer.
“We’ve just concluded an agreement with the country Pakistan,” President Trump said in a post about Truthsocial.
Although specific details have not emerged from Islamabad or Washington in the trade agreement, the Ministry of Finance has said the agreement “will result in a reduction of mutual customs duty, especially about Pakistani exports to the United States” – leading to a fresh beginning in bilateral economic cooperation.
The trade, the ministry adds, aims to increase bilateral trade, improve market access, attract investment and strengthen cooperation in areas of mutual interest.
President Trump expanded on an important aspect of the trade agreement and said the two countries will “work together to develop their massive oil reserves” and was currently “in the process of choosing the oil company” that will lead this partnership.
Under that understanding, Pakistan and the United States will also focus on energy, minerals, information technology, cryptocurrency and other key areas.
With the trade agreement, which is probably also attracting US investments, Finmin Aurangzeb said the development reflected a broader financial and strategic partnership that is now taking shape.
It is relevant to mention that Pakistan was facing a potential 29% duty on exports to the United States during tariffs announced by Washington in April about countries around the world. Tariffs were then suspended for 90 days so that negotiations could take place.
The tariffs, if they had come into force, would have had a significant influence when the US total trade in Pakistan was estimated $ 7.3 billion in 2024, according to the site of the US Trade Representative Office, up from around $ 6.9 billion in 2023.
The US trade deficits with Pakistan were $ 3 billion in 2024, an increase of 5.2% over 2023.
– With additional input from Reuters
