WASHINGTON – A high-level Pakistani delegation arrived in Washington on Monday to finalize a long-anticipated trade agreement, as Islamabad seeks to recalibrate its economic relationship with the United States and address lingering tensions over elevated import tariffs imposed during former President Donald Trump’s administration.
Led by Commerce Secretary Jawad Paal, the delegation is set to engage in critical discussions with U.S. Trade Representative Jamieson Greer and senior officials from various government departments.
According to the Finance Ministry, the negotiations — ongoing for over a month — are expected to conclude this week, following a recent meeting between Finance Minister Muhammad Aurangzeb and U.S. Commerce Secretary Howard Lutnick.
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The talks primarily focus on reciprocal tariff adjustments as part of a broader strategy to reset bilateral trade ties amid evolving global geopolitical dynamics. Officials from Pakistan also confirmed that discussions on establishing a long-term strategic and investment partnership are underway.
Currently, Pakistani exports to the U.S. face a 29% tariff. Despite this, Pakistan maintained a $3 billion trade surplus with the United States in 2024. To ease tariff pressure and correct the trade imbalance, Islamabad has proposed increasing imports of American products, including crude oil, and offering expanded investment opportunities for U.S. companies, particularly in Pakistan’s mining sector.
The Finance Ministry expressed satisfaction over the progress of the negotiations, stating that both sides are committed to concluding the agreement by next week.
In a related effort to boost investor confidence, the two governments recently co-hosted a webinar promoting investment in Pakistan’s mineral sector, with a spotlight on the $7 billion Reko Diq copper-gold project in Balochistan. Discussions included regulatory reforms and potential public-private partnerships aimed at drawing foreign capital.
The U.S. Export-Import Bank is currently evaluating financing proposals ranging between $500 million and $1 billion to support the Reko Diq project.
Meanwhile, U.S. Treasury Secretary Scott Bessent told Fox Business that Washington is in talks with 18 key trading partners and anticipates that several trade agreements could be finalized in the coming weeks. “If we can ink 10 or 12 of the important 18… then I think we could have trade wrapped up by Labor Day,” Bessent stated, signaling a more flexible timeline than the earlier July 9 target.
Former President Trump has previously claimed he leveraged trade diplomacy to de-escalate tensions between Pakistan and India in May. U.S. officials believe that securing trade deals with both nations could contribute to regional stability and lay the groundwork for enhanced economic cooperation.
