FinMin is discussing modernization of the refinery with Honeywell in Washington

Finance Minister Muhammad Aurangzeb met a delegation from Honeywell Technologies in Washington, DC on Tuesday, where discussions focused on the proposed modernization and expansion of Pakistan’s refining sector, according to the finance ministry.

The ministry said the finance minister welcomed the proposal, saying it has the potential to “improve the country’s domestic refining capacity and reduce dependence on imported petroleum products”.

According to the ministry, the two sides discussed “Honeywell’s technology and equipment solutions” as well as “potential financing through the US EXIM Bank, the US International Development Finance Corporation (DFC), export credit agencies and leading international banks”.

The ministry said the finance minister told the delegation that the proposed initiative would “support Pakistan’s energy security, industrial development and sustainable economic growth”.

Honeywell’s delegation was led by its vice president and general manager, Barry Glickman.

The round of talks came as Islamabad and Washington seek to deepen economic engagement through trade, investment and commercial partnerships.

The United States remains Pakistan’s largest single country export destination, while both countries have recently expanded cooperation in areas including investment promotion and critical minerals.

According to the Office of the US Trade Representative, total US trade in goods and services with Pakistan was estimated at $10.1 billion in 2024. US merchandise trade reached $8.7 billion in 2025, with US exports to Pakistan rising to $3.3 billion and imports from Pakistan rising to $5.4 billion.

Read: Pakistan, US trade talks progress: FO

Business leaders have welcomed progress in the talks and say a reciprocal trade agreement could improve Pakistani exporters’ access to the US market.

The talks also come against the backdrop of evolving US tariff measures affecting Pakistani exports. Earlier this year, the Trump administration proposed a 29% tariff on Pakistani goods before reducing it to 19% after negotiations with Pakistani officials.

Subsequently, the United States Supreme Court ruled that the International Emergency Economic Powers Act did not authorize the president to impose broad tariffs under emergency powers. The administration later invoked Section 122 of the Trade Act of 1974 to impose a temporary 10% global tariff for up to 150 days.

Pakistan is also among the countries responding to a Section 301 investigation by the US Trade Representative’s office into alleged forced labor-related trade practices. Islamabad has submitted detailed responses to the US authorities, including a further submission ahead of the latest round of talks.

The State Department said on July 12 that Pakistan and the United States had made significant progress toward a mutual trade agreement after two days of talks in Washington, where both sides narrowed differences and built consensus for the pact’s early conclusion.

Foreign Ministry spokesman Tahir Andrabi had said that talks on the Pakistan-US Reciprocal Trade Agreement were held on July 9 and 10 in Washington in what he described as a cordial atmosphere.

The negotiations focused on strengthening bilateral trade, facilitating greater commercial cooperation and expanding existing trade between the two countries.

Photographs shared by the Foreign Office showed officials from both sides posing after the talks. In one photo, Paul presented a Pakistan-made soccer ball to a US official, highlighting one of Pakistan’s leading export industries.