Pakistan Proposes Zero-Tariff Trade Deal with U.S. Amid Renewed Diplomatic Thaw
ISLAMABAD – Pakistan has formally proposed a zero-tariff bilateral trade agreement with the United States, aiming to boost trade volume and enhance market access in crucial sectors, according to credible government sources.
The proposal, which suggests eliminating tariffs on selected goods, is seen as a strategic move to increase Pakistani exports to the American market. The initiative comes amid renewed efforts to strengthen U.S.-Pakistan economic cooperation, particularly in light of a recent reduction in tensions between Pakistan and India.
“This zero-tariff arrangement would not only benefit Pakistan’s exporters but also foster economic stability and growth across the region,” a senior official involved in the matter told reporters.
Read More: The two countries sign a $1 billion trade agreement.
U.S.-India Trade Talks Also Progressing
The move comes shortly after U.S. President Donald Trump revealed that India has offered Washington a trade deal with no tariffs. Speaking in Doha, Trump said: “It is very hard to sell in India, and they are offering us a deal where basically they are willing to literally charge us no tariffs.”
India is currently the United States’ largest trading partner, with bilateral trade valued at approximately $129 billion in 2024. However, the trade balance heavily favors India, which runs a $45.7 billion surplus with the U.S.
Ceasefire Diplomacy Spurs Trade Optimism
Diplomatic sources link the timing of Pakistan’s trade proposal to recent backchannel diplomacy led by President Trump, which helped mediate a ceasefire agreement between India and Pakistan. The breakthrough has reportedly opened the door for deeper economic dialogue between Islamabad and Washington.
On Wednesday, the Directors General of Military Operations (DGMOs) from Pakistan and India held their third hotline contact, reaffirming their commitment to uphold the ceasefire along the Line of Control (LoC).
Deputy Prime Minister and Foreign Minister Ishaq Dar told the Senate that the ceasefire agreement will remain in effect until at least May 18, a development that further supports hopes for regional peace and economic collaboration.
