KARACHI: Pakistan and the United States are set to wrap up their ongoing trade negotiations next week, officials confirmed on Wednesday, marking a key step toward redefining economic relations between the two countries.
The announcement followed a virtual meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and US Secretary of Commerce Howard Lutnick. The talks focused on reciprocal tariffs and broader economic cooperation in light of shifting global dynamics and Pakistan’s push to secure greater access to US markets.
In a statement, Pakistan’s Ministry of Finance said both sides expressed satisfaction with the progress made and agreed to finalize trade negotiations in the coming days. The two countries are also exploring a longer-term strategic and investment partnership covering multiple sectors of mutual interest.
The discussions are particularly significant for Pakistan, which currently faces a 29% tariff on exports to the US — a measure that dates back to former President Donald Trump’s policies aimed at countries with large trade surpluses. Pakistan’s trade surplus with the US stood at around $3 billion in 2024.
To ease tariff pressure and rebalance trade, Islamabad has proposed importing more American goods, including crude oil, and offering incentives for US companies to invest in Pakistan’s mining sector.
Earlier this week, the two countries co-hosted a webinar focused on mineral sector opportunities, highlighting projects such as the $7 billion Reko Diq copper-gold mine. Senior officials, including energy sector leaders and US investors, discussed public-private partnerships, policy reforms, and regulatory facilitation aimed at boosting foreign direct investment.
The US Export-Import Bank is reportedly reviewing financing proposals ranging from $500 million to $1 billion for potential investments in Reko Diq and related ventures.
In recent weeks, efforts to recalibrate Pakistan-US economic ties have gathered momentum. Former President Trump hosted Pakistan’s Chief of Army Staff, General Asim Munir, at the White House last week — an unusual and high-level engagement that underscored Washington’s evolving view of Islamabad’s economic and strategic relevance.
Meanwhile, both countries have reaffirmed their intention to deepen bilateral economic engagement. Wednesday’s meeting between Aurangzeb and Lutnick further emphasized the need for sustained, meaningful dialogue on trade and investment.
According to the finance ministry, the upcoming round of technical-level discussions will aim to finalize key elements of the trade framework. Both sides also expressed confidence in establishing a broader, long-term economic partnership once the current trade talks conclude.
