Pakistan and US Forge Mutually Beneficial Trade Agreement

Finance Minister Muhammad Aurangzeb announced on Thursday that the recently concluded trade agreement between Pakistan and the United States represents a “win-win” outcome for both nations.

“Today signifies the successful completion of a journey we embarked upon several months ago,” Aurangzeb stated in a video message issued by the Ministry of Finance.

The finance minister revealed that officials from both countries engaged in “a highly productive final round of discussions, which subsequently led to the finalization of the trade agreement.”

This significant achievement occurred during a meeting in Washington, D.C. between Pakistan’s Finance Minister Muhammad Aurangzeb, US Secretary of Commerce Howard Lutnick, and United States Trade Representative Ambassador Jamieson Greer on Thursday.

Secretary of Commerce Jawad Paul and Pakistan’s Ambassador to the United States, Ambassador Rizwan Saeed Sheikh, also attended the meeting.

“From our viewpoint, we were consistently focused on exceeding the basic trade requirements,” Aurangzeb commented, adding that trade and investments “must progress in unison”.

The finance minister commended his economic team, while also recognizing the private sector’s contribution to the realization of this trade accord.

Aurangzeb mentioned that investments across various sectors were deliberated. “Our initial focus will be on energy, followed by mineral and mining, IT, and the emerging digital economy.”

“Pakistan is currently in a favorable position, especially considering our progress before August 1. We have made considerable strides in strengthening the overall strategic alliance between Pakistan and the United States,” he noted.

These statements followed an announcement by US President Donald Trump on Wednesday, stating that his administration had reached an agreement with Pakistan to collaborate on developing the South Asian country’s oil reserves.

“We have just finalized an agreement with Pakistan, wherein Pakistan and the United States will collaborate on developing their substantial Oil Reserves,” Trump posted on social media.

“We are in the process of selecting the Oil Company to spearhead this Partnership. Potentially, they might even be selling Oil to India in the future!”

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

Under the Trump administration, Washington has pursued the renegotiation of trade agreements with numerous countries, threatening tariffs due to what he describes as unfair trade practices. Many economists have challenged Trump’s characterization.

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