Finance Minister Muhammad Aurangzeb has departed for the United States to conclude talks on the FinMin Aurangzeb Pakistan‑US trade deal. This is his second trip to Washington in two weeks.
The visit comes just days before the August 1 deadline, set by the US administration. If no agreement is reached by then, a 29% tariff will be imposed on Pakistani exports under President Trump’s trade policy.
According to the Ministry of Finance, the final round of talks on the Pakistan-US trade deal will take place during Aurangzeb’s visit. A statement from the ministry said the trade agreement is expected to bring mutual benefits for both countries.
The urgency of the trip follows instructions given to Aurangzeb after a high-level meeting at the Prime Minister’s Office. Pakistan aims to secure a deal to avoid the steep duties and rebalance trade ties with the US.
Before his departure, Aurangzeb also met with the US Chargé d’Affaires in Islamabad. Reports suggest that most terms of the trade deal have already been settled, and a formal announcement is likely soon after the finance minister’s arrival in Washington.
The negotiations focus on reducing reciprocal tariffs. The US is pressing Pakistan to make concessions such as lowering digital tax rates for major platforms. If Pakistan agrees, similar treatment would likely have to be extended to Chinese companies under existing bilateral commitments.
To address the trade imbalance, estimated at a $3 billion surplus in Pakistan’s favor in 2024, Islamabad has offered to increase imports of US goods like crude oil. It also plans to offer investment opportunities in Pakistan’s mining sector.
The visit follows a recent boost in bilateral ties, highlighted by Pakistan’s Army Chief’s meeting with President Trump. Islamabad is also pushing to expand cooperation in IT, minerals, and agriculture sectors.
Both governments hope to finalise the trade agreement before the looming deadline. For more on how US officials view Pakistan’s global role, read this report on Rubio’s remarks praising Pakistan’s peace efforts.
