FPCCI Applauds Trade Agreement Between Pakistan and the United States

The Federation of Pakistan Chambers of Commerce & Industry (FPCCI), recognized as the nation’s leading trade and industry organization, has expressed its support for the recently established trade agreement between Pakistan and the United States, which focuses on reducing tariffs. The FPCCI views this agreement as a substantial advancement in reinforcing economic bonds between the two countries.

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

He further commented that “The tariff agreement demonstrates the enhanced bilateral cooperation, trade relations, and investment opportunities shared between the two nations.”

These remarks follow the agreement between Pakistan and the US, which aims to decrease tariffs for Pakistan. Additionally, Washington will support the growth of Islamabad’s oil reserves, according to both parties.

Former US President Donald Trump announced on social media on Wednesday, “We have just finalized a Deal with the Country of Pakistan, which entails collaboration between Pakistan and the United States to develop their significant Oil Reserves.”

Trump added, “We are currently in the process of selecting the Oil Company to spearhead this Partnership.” Further specifics were not included in Trump’s social media announcement.

Pakistan’s Finance Minister Muhammad Aurangzeb conveyed in a video message on Thursday that the trade deal represents a mutually beneficial scenario for both nations.

“Pakistan is currently in a favorable position as we approach August 1. Significant progress has been made in the overall strategic partnership between Pakistan and the United States,” he noted.

Pakistan was potentially facing a 29% tariff on exports to the United States, as per tariffs declared by Washington in April affecting countries worldwide. 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 goods traded between the US and Pakistan reached approximately $7.3 billion in 2024, an increase from around $6.9 billion in 2023. However, the US goods trade deficit with Pakistan in 2024 was $3 billion, marking a 5.2% rise from 2023.

Sheikh emphasized, “The US is Pakistan’s primary trading partner, and this agreement will further stimulate the country’s exports. The agreement is expected to lower tariffs on Pakistani goods entering the US and improve access to the market.”

He also stated that the agreement signifies “the commencement of a new phase of economic collaboration between the two countries within crucial sectors”.

The FPCCI President reiterated the business sector’s unwavering support for governmental efforts aimed at fostering national progress.