Pakistan and US Finalize Landmark Trade Agreement

Following extensive discussions, Pakistan and the United States have successfully reached a significant trade agreement focusing on tariffs and oil resources. Prime Minister Shehbaz Sharif expressed his gratitude to US President Donald Trump for his instrumental role in achieving what he described as a “historic” accord between the two nations.

The agreement was officially finalized in Washington after intense negotiations involving officials from both countries.

In a statement released on social media, Trump announced, “We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will collaborate on developing their substantial Oil Reserves.”

The Prime Minister acknowledged the agreement on X, highlighting its potential to strengthen economic relations and broaden the overall partnership between the two countries.

“This landmark deal will enhance our growing cooperation to expand the frontiers of our enduring partnership in days to come,” he stated.

Minister of State for Finance Bilal Azhar Kayani characterized the newly established trade agreement between Pakistan and the United States as a noteworthy diplomatic accomplishment and a beneficial stride for the nation’s economy.

In an interview, Kayani emphasized that the agreement was the culmination of continuous diplomatic efforts in recent weeks. “This deal reflects the strength of our diplomacy,” he remarked, noting the government’s unwavering commitment to bolstering diplomatic outreach.

He verified that the agreement encompasses tariff reductions on Pakistani exports to the US, a move anticipated to significantly stimulate the country’s trade sector.

“This is a welcome development for our economy,” Kayani added.

Finance Minister Senator Muhammad Aurangzeb indicated that Pakistan and the United States have consented to jointly advance trade and investment initiatives, subsequent to a pivotal meeting held in Washington.

Following discussions with US Commerce Secretary Howard Lutting and Trade Representative Jameson Greer, Aurangzeb conveyed that the meeting was productive, leading to the culmination of the trade agreement.

“This deal reflects a broader economic and strategic partnership that’s now taking shape,” he commented.

The minister expressed gratitude to all participants involved in the negotiations, recognizing the private sector’s crucial contribution and its continued support, particularly in addressing the trade imbalance.

According to data from the Office of the US Trade Representative, the total US goods trade with Pakistan reached an estimated $7.3 billion in 2024, marking an increase from approximately $6.9 billion in 2023. However, the US goods trade deficit with Pakistan amounted to $3 billion in 2024, reflecting a 5.2% rise compared to the previous year.

Meanwhile, DPM Dar shared the news, stating: “Pakistan concludes deal with USA, AlhamdoLilah.” This announcement marked what officials are considering a pivotal advancement in Pakistan’s economic diplomacy.

According to a statement by the Ministry of Finance, the breakthrough occurred during Finance Minister Muhammad Aurangzeb’s meeting with the US Secretary of Commerce and Trade Representative. Pakistan’s Ambassador to the US, Rizwan Saeed Sheikh, and Commerce Secretary Jawad Paul were also in attendance.

“The purpose of the deal is to boost bilateral trade, improve market access, attract investment, and strengthen cooperation in areas of mutual interest,” the official statement noted.

“Under the agreement, there will be a reduction in tariffs, particularly on Pakistani exports to the US, and a fresh start in economic cooperation between the two countries.”

“The two sides will focus on energy, minerals, information technology, cryptocurrency, and other key areas, the statement added.

The agreement is poised to enhance Pakistan’s trade relationships with the US and facilitate improved access to each other’s markets. “It is also expected to draw more US investment into Pakistan’s infrastructure and development projects.”