U.S.-Pakistan trade agreement nearing completion, according to Pakistan's deputy PM, estimated to be finalized in the coming days.
Pakistan and the United States are in the final phase of trade deal negotiations, with both countries aiming to formalize a comprehensive agreement that is expected to be mutually beneficial. The negotiations follow the US announcement of a 29 percent reciprocal tariff on Pakistani exports, which was paused to allow for dialogue.
The discussions are focused on tariff issues, broader economic cooperation, and investment opportunities. Pakistani officials, including Foreign Minister Ishaq Dar, have expressed optimism that the deal could be finalized "in days, not weeks."
On Friday, Dar met with Secretary of State Marco Rubio, and the two discussed expanding bilateral trade and enhancing collaboration in the critical minerals sector. Rubio also thanked Dar for Pakistan's partnership in countering terrorism and preserving regional stability.
The Pakistani foreign ministry has appreciated the pivotal role of President Trump and Rubio in de-escalating tensions between Pakistan and India. The US State Department, however, did not mention India in relation to the ceasefire that was declared on May 10, a claim disputed by India.
Pakistan is hopeful of granting greater market access to United States products in large Pakistani markets. The United States is currently Pakistan's top export destination, with shipments totaling $5.44 billion in fiscal year 2023-2024.
The tariff, initially paused in June for a 90-day period, may undercut Pakistan's fragile, export-led recovery. However, the negotiations are expected to shift economic engagement toward long-term investment and strategic partnership rather than transactional trade relations.
The ongoing talks have covered topics such as textiles, digital trade, and agriculture. Pakistan is working toward expanding cooperation beyond traditional goods into sectors like information technology, minerals, agriculture, digital infrastructure, and AI.
Both countries are optimistic about the potential for a mutually beneficial trade agreement. No official agreement has yet been announced, but sources indicate a strong possibility of conclusion in the near term, potentially within days.
- The trade deal negotiations between Pakistan and the United States are not only focused on tariff issues, but also encompass broader economic cooperation, culture, and business industry, including topics like textiles, digital trade, and agriculture.
- The potential trade agreement between Pakistan and the United States could lead to greater market access for American products in Pakistani markets, given that the United States is currently Pakistan's top export destination with over $5.44 billion in shipments in fiscal year 2023-2024.
- The discussions on potential investment opportunities are expected to shift economic engagement toward strategic partnerships and long-term investment, rather than transactional trade relations, to support the fragile, export-led recovery of Pakistan.
- Beyond traditional goods, Pakistan is aiming to expand cooperation with the United States in sectors like information technology, minerals, agriculture, digital infrastructure, and AI, as evident in the recent talks between Pakistani Foreign Minister Ishaq Dar and Secretary of State Marco Rubio.
