Pakistan's deputy prime minister is scheduled to hold talks in Washington regarding trade and economic collaboration.
Pakistan and US in Final Stages of Trade Agreement Negotiations
Pakistan and the United States are in the final stages of negotiating a bilateral trade agreement aimed at resetting economic ties and avoiding steep U.S. tariffs on Pakistani exports. The negotiations, which have been ongoing since July 2025, have seen multiple visits from Pakistan's Finance Minister Muhammad Aurangzeb to the U.S. to hold concluding discussions with key U.S. officials [1][2][3][4].
The current status of these talks is that both countries are focusing not only on tariff reduction and trade balance but also on broadening economic ties to include significant U.S. investment opportunities in Pakistan’s critical sectors beyond traditional trade goods. This shift reflects a desire to move beyond a trade-focused relationship to one anchored in long-term investment [1][2][3].
The U.S. had proposed a 29% reciprocal tariff on Pakistani exports due to Pakistan’s sizable trade surplus with the U.S. ($3 billion in 2024). This tariff was temporarily suspended but has driven Pakistan’s effort to secure a long-term trade arrangement [1][2][3][4]. In response, Pakistan has offered to increase imports of U.S. goods such as crude oil to balance trade and reduce tariff pressures [2][3].
Both sides are exploring expanding cooperation into non-traditional sectors including information technology, minerals, agriculture, and energy [1][2]. Pakistan is seeking long-term U.S. investment concessions in key sectors such as mining, agriculture, and tech-based industries, signaling a shift from mere trade to deeper economic partnership and investment [1][2][3].
Pakistan's Deputy Prime Minister and Foreign Minister, Ishaq Dar, is currently in Washington to discuss these matters. He is scheduled to meet with US Secretary of State Marco Rubio on Friday and speak at the US think tank, The Atlantic Council. During his speech, he will share Pakistan's perspective on regional and global issues, as well as the future of Pakistan-US relations [5].
The tariff, if implemented, could undercut Pakistan's fragile, export-led recovery. Currently, nearly 90 percent of Pakistan's exports to the US are textiles. The US is Pakistan's top export destination, with exports totaling $5.44 billion in fiscal year 2023-2024. The aim of these negotiations is to begin investment-related discussions "very quickly" [5].
In conclusion, the negotiations are close to completion and focus not only on tariff reduction and trade balance but also on broadening economic ties to include significant U.S. investment opportunities in Pakistan’s critical sectors beyond traditional trade goods [1][2][3][4]. The talks are a response to the US announcing a 29 percent "reciprocal tariff" on Pakistani exports in April, and the meeting between Dar and Rubio is expected to focus on strengthening bilateral ties, with a particular focus on promoting trade, investment, and economic cooperation.
- The ongoing negotiations between Pakistan and the US extend beyond trade discussions, with both nations exploring investment opportunities in non-traditional sectors such as information technology, minerals, agriculture, and energy.
- In a bid to counteract steep US tariffs on Pakistani exports and secure long-term economic ties, Pakistan has proposed increasing imports of US goods like crude oil to balance trade.
- As the final stages of the trade agreement negotiations approach, news outlets and general-news networks have been covering the negotiations extensively, with articles detailing the potential impact on Pakistan's art, finance, and business sectors.
