Federal Finance Minister Muhammad Aurangzeb said Tuesday that Pakistan and the United States promote efforts to improve their strategic partnership and emphasized that both nations are in line with key issues and make progress in the right direction.
In an event in Islamabad, the minister described his recent dialogue with US trade secretary Howard Lutnick as encouraging and going forward.
Aurangzeb confirmed the government’s obligation to continued reform initiatives in areas such as taxation, energy and trade, according to a report on the state drive Radio Pakistan Website.
He noted that recent customs adjustments are aimed at promoting a more competitive economic environment.
Comment on pension reforms said the Minister of Finance that the introduction of the defined contribution pension scheme represents a balanced approach that benefits both the state and government employees.
He added that pensions for retired staff have been raised by seven percent to reflect the current inflation trends. In addition, a proposal has been made to introduce a tax of five percent on pensions exceeding ten million rupees while ensuring that pensioners with lower and intermediate income remain unaffected.
During a previous virtual meeting with trade secretary Lutnick, both parties agreed to push forward with negotiations on mutual customs arrangements.
The discussions focused on increasing trade and investment ties and strengthening economic cooperation based on mutual interest.
The two sides also agreed to continue conversations at the technical level in the coming days after a joint agreed roadmap aimed at ending a trade agreement.
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Earlier, the federal government decided to initiate conversations with the Trump administration about the 29% duty imposed on Pakistani products of the United States, Express News reported.
Sources said the government has begun to formulate a strategy to tackle the impact of the extra customs and to investigate the possibility of reducing it through discussions with the US authorities.
In this connection, a decisive meeting was held at the Ministry of Commerce under the Presidency of Federal Minister of Trade, Jam Kamal Khan.
The meeting, which included over fifty key exporters, importers and stakeholders, focused on the potential effects of the 29% duty, especially on Pakistan’s textile exports.
The session analyzed how the new US tariffs could adversely affect Pakistan’s textile sector, which is the largest part of the country’s exports to the United States.
Pakistan’s average exports to the United States exceeds $ 5.5 billion annually, with textiles that account for a significant share.
Furthermore, Senator Aurangzeb, Pakistan’s unshakable obligation to promote regional economic cooperation at the Shanghai Cooperation Organization (SCO) Finance Ministers and Central Banking Governors, who meet in Beijing on Tuesday.
The virtual address highlighted Pakistan’s ongoing dedication to promoting economic stability, prosperity and development within the SCO framework.
Senator Aurangzeb confirmed Pakistan’s active role within SCO and emphasized its importance as an important platform to improve economic ties between Member States.
Aurangzeb also expressed gratitude to China to host the high -level collection and stressed Pakistan’s support for proposals aimed at increasing joint projects, technology transfer and capacity building programs.
