US President Donald Trump confirmed that a high-level delegation from Pakistan is scheduled to arrive in the United States next week for critical trade negotiations.
The talks come as Islamabad seeks to resolve a tariff dispute with Washington, which has placed Pakistan at risk of facing up to 29% tariffs on its exports.
Pakistan’s trade surplus of $3 billion with the U.S. has put it under scrutiny following new American tariff measures announced last month. These global tariffs, aimed at recalibrating trade balances, led the US to temporarily suspend enforcement for 90 days to allow for diplomatic dialogue.
In response, Prime Minister Shehbaz Sharif held a high-level review meeting in Islamabad on April 9, deciding to send a delegation of government officials, prominent business figures, and leading exporters to the US. The mission aims to improve bilateral trade relations and find a path to mutual economic benefit.
Speaking to reporters at Joint Base Andrews, Trump linked future trade relations to regional peace, saying, “I would have no interest in making a deal with either Pakistan or India if they were to engage in war with each other.”
His remarks followed recent escalation between the two nuclear-armed neighbors, who exchanged artillery, drones, and fighter jet strikes during four days of intense fighting.
Trump also mentioned progress with India on trade, noting that the US is nearing a trade agreement with India, with Indian Trade Minister Piyush Goyal recently visiting Washington to advance negotiations. Both sides aim to finalize an interim deal by early July. India, too, faces a 26% tariff on its exports to the US.
Reuters reports that India may open contracts worth over $50 billion—mainly federal procurement—to American firms, offering significant opportunities for US companies.
According to official sources, Pakistan has proposed a zero-tariff bilateral trade agreement covering selected tariff lines of mutual interest. This offer is designed to widen trade channels across multiple sectors and present the US with a compelling alternative in South Asia.
Pakistan’s Finance Minister Muhammad Aurangzeb and US Trade Representative Jamieson Greer held an initial discussion via telephone on May 30. Finance Ministry Advisor Khurram Schehzad called the conversation “constructive,” adding both sides agreed to begin technical-level negotiations soon.
“The two sides expressed confidence in advancing the negotiations for a successful conclusion at the earliest,” Schehzad said on X (formerly Twitter).
Commerce Minister Jam Kamal revealed that Pakistan plans to offer investment concessions to American firms, particularly in the mining sector. These incentives will include lease grants and joint ventures with local companies, especially in mineral-rich Balochistan.
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“There is untapped potential for US companies in Pakistan, from mining machinery to hydrocarbon ventures,” Kamal told Reuters.
Pakistan is also looking to increase imports from the US, particularly cotton and edible oils, to ease domestic shortages.
In a notable shift from previous US administrations, which focused more on India, the Trump administration now appears to be recognizing Pakistan as a viable trade partner.
“The previous US administration focused more on India, but Pakistan is now being recognised as a serious trade partner,” Kamal said.
He added that Pakistan will gradually lower tariffs in the upcoming federal budget to foster foreign investment and enhance competitiveness. The US has yet to specify priority sectors or trade barriers, but Islamabad remains hopeful of reaching a mutually beneficial agreement.
