FPCCI Applauds Trade Agreement Between Pakistan and the United States

The Federation of Pakistan Chambers of Commerce & Industry (FPCCI), the primary organization for trade and industry in the nation, has expressed its approval of the recently established trade agreement between Pakistan and the United States, which focuses on reducing tariffs. They consider it a substantial advancement in reinforcing economic relations between the two countries.

Atif Ikram Sheikh, the President of FPCCI, stated on Thursday that “The trade agreement between Pakistan and the US regarding tariff reduction is highly commendable.”

He further noted, “The tariff agreement demonstrates the enhancement of bilateral cooperation, trade, and investment ties between the two nations.”

These comments follow an accord between Pakistan and the US that will lead to decreased tariffs for Pakistan. Additionally, Washington will assist Islamabad in developing its oil reserves, according to both parties.

US President Donald Trump announced on social media on Wednesday, “We have just finalized an agreement with Pakistan, through which Pakistan and the United States will collaborate on the advancement of their significant Oil Reserves.”

“We are currently selecting the Oil Company to spearhead this collaborative endeavor.” Additional details were not provided in Trump’s social media announcement.

Pakistan’s Finance Minister Muhammad Aurangzeb, in a video message on Thursday, described the trade deal as a mutually beneficial arrangement for both countries.

“We are in a favorable position in Pakistan today, especially considering our progress leading up to August 1. We have made considerable progress in our overall strategic partnership between Pakistan and the United States,” he stated.

Pakistan was facing a potential 29% tariff on exports to the United States, as announced by Washington in April for various countries. However, these tariffs were temporarily suspended for 90 days to allow for negotiations.

According to the Office of the US Trade Representative, the total value of US goods traded with Pakistan in 2024 was approximately $7.3 billion, an increase from around $6.9 billion in 2023. The US goods trade deficit with Pakistan in 2024 was $3 billion, marking a 5.2% rise compared to 2023.

Sheikh emphasized that “The US is Pakistan’s primary trading partner, and this agreement will further stimulate the country’s exports. The agreement will result in lower tariffs on Pakistani products in the US and improved market access.”

He also added that the agreement would “signify the beginning of a fresh phase of economic collaboration between the two nations in crucial sectors”.

The FPCCI President also reiterated the business sector’s unwavering support for the government’s initiatives geared towards national advancement.