Pakistan and US Forge Mutually Beneficial Trade Agreement

Finance Minister Muhammad Aurangzeb stated on Thursday that the recently established trade agreement between Pakistan and the United States presents a “win-win” scenario for both nations.

“Today signifies the achievement of a process we commenced several months ago,” Aurangzeb conveyed in a video statement issued by the Ministry of Finance.

The finance minister noted that officials from both countries engaged in “highly productive final discussions, culminating in the completion of the trade agreement.”

The breakthrough 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, our focus extended beyond mere trade imperatives,” Aurangzeb commented, emphasizing that trade and investments “must be closely interconnected.”

The finance minister commended his economic team, acknowledging the private sector’s contribution, in securing the trade agreement.

Aurangzeb mentioned that investments across multiple sectors were addressed. “We will prioritize energy initially, followed by mineral and mining, IT, and the developing digital economy.”

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

These comments follow remarks made on Wednesday by US President Donald Trump, who announced that his administration had reached an agreement with Pakistan. The arrangement involves Washington collaborating with Islamabad to develop Pakistan’s oil reserves.

“We have just finalized a Deal with Pakistan, where Pakistan and the United States will collaborate to develop their substantial Oil Reserves,” Trump posted on social media.

“We are currently in the process of selecting the Oil Company to spearhead this Partnership. Perhaps they will eventually sell Oil to India!”

Pakistan was facing a potential 29% tariff on exports to the United States, which Washington initially announced in April. However, these tariffs were temporarily suspended for 90 days to facilitate negotiations.

Under Trump’s administration, the US has pursued renegotiations of trade agreements with numerous countries, threatening tariffs due to perceived unfair trade practices. Many economists have challenged Trump’s assessments.

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