KARACHI: Pakistan said Wednesday it had reached a trade deal with the United States after weeks of extensive negotiations, paving the way for reduced tariffs and deeper economic ties, as US President Donald Trump highlighted a new partnership to develop Pakistan’s oil reserves.
The announcements came after the US imposed a 29 percent “reciprocal tariff” on Pakistani exports under Trump’s trade measures announced in April, a move that raised alarm in Islamabad amid concerns over its fragile economic recovery. Washington later suspended the tariffs for 90 days to allow for negotiations with affected countries, including Pakistan.
Federal Minister for Finance Muhammad Aurangzeb led the negotiations from Pakistan’s side with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. The breakthrough came just ahead of the August 1 deadline.
“In a landmark development, Pakistan and the United States finalized a trade agreement today aimed at boosting bilateral trade, expanding market access, attracting investment and fostering cooperation in areas of mutual interest,” Pakistan’s finance ministry said in a statement issued from Washington.
“The agreement will result in reduction of reciprocal tariff especially on Pakistani exports to the United States,” it added. “This deal marks the beginning of a new era of economic collaboration especially in energy, mines and mineral, IT, cryptocurrency and other sectors.”
