Islamabad:
As the government is tightened on the ends of the American-Pakistani trade agreement, discussions in the background suggest that Washington could have accessed the market for zero prices in exchange for investment in critical sectors and to give Islamabad favorable treatment compared to regional peers.
The Reunion of the Marshal Asim Mnnir with President Donald Trump and the positive approach of the Pakistani negotiators in terms of resolution of the issue before the deadline of August 1 played a role in the conclusion of a better and early agreement.
Pakistani export prices will be lower than regional competitors in Southern Asia and Southeast Asia, mainly India, Vietnam and Indonesia.
The chief negotiator of Pakistan, the Minister of Finance, Muhammad Aurangzeb, described him as “a real win-win agreement” for the two countries, which protected Pakistani exports from higher reprisals. But the final prices could be higher than the pre-retarent prices of approximately 9.8%.
The United States can now export goods to Pakistan at practically zero rates, but the date of entry into force of zero prices may be from July 2026 due to the necessary legislative changes, the Pakistani authorities said on condition of anonymity.
No price on American products will be for the benefit of consumers who will have quality goods, but their prices could be more than Chinese products.
In return, the American prices on Pakistan will be less than 29%, which President Donald Trump announced in April compared to the rates of 9.8% means at that time.
Aurangzeb said that the United States will also invest “in energy, then in minerals, mines, information technologies, digital infrastructure and the new economy”.
People aware of several commercial discussion cycles said Thursday that the United States had set two key requests for a commercial agreement with Pakistan: lower prices on its exports to Pakistan zero with total access to markets; and the exemption from its companies of 5% tax imposed under the law on the product of the digital presence 2025.
A few hours before President Donald Trump’s announcement that his administration has entered into an agreement with Pakistan, the Federal Board of Return issued a notification to withdraw the tax by 5%.
The Secretary of Commerce, Jawad Paul, who was part of the negotiation team, did not comment if Pakistan accepted the American demand for zero prices with full access on the market.
There was no official announcement on each side on what the rate rate has been agreed, but the Pakistani Embassy in Washington said that the agreement “would lead to the reduction of the reciprocal rate (29%), in particular on Pakistani exports to the United States”.
The agreement was concluded at an Aurangzeb meeting, the US Secretary of Commerce Howard Lutnick, and the American trade ambassador Jamieson Greer. Commerce Secretary Jawad Paul and Pakistan Ambassador to the American Rizwan Saeed Sheikh were also present at the meeting.
The sources said that Pakistan expected that, in return, the United States will set import tariffs from 15%to 19%, preferably almost 15%, which is lower than the rate of reprisals but above the pre-avilles rates.
Until the deposit of history, no announcement is made either by the United States or the Pakistani government on the final price of Pakistan.
Pakistan has also requested concessions for the export of its agricultural products, the sources said.
One thing was clear that Pakistan will not be in a disadvantageous position compared to regional countries because of its constructive approach in the treatment of the issue, said another government official.
One of the questions could be the concerns presented by the other business partners in Pakistan. To cope with the question, it is possible that the two parties show the intention to sign a preferential trade agreement or a free trade agreement, the sources said.
President Donald Trump also spoke of exploring Pakistan’s oil reserves with American companies. An official of the petroleum division said that there was a possibility that an American company could participate in the next offshore borehole.
L’Express PK Press Club reported last week that the oil division was looking for investor offers interested in granting rights to train offshore and it would open the offers on October 31, 2025.
The report also indicated that the previous petroleum and gas development company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) had trouble finding hydrocarbon reserves in an offshore area at the Oman Sea in combination with the American energy giant Exxonmobil and the Italian company Eni. Pakistan made 17 attempts to do offshore drilling, but they did not give the desired results.
“From our point of view, this always went beyond the immediate commercial imperative. The interest of this is that trade and investment must go hand in hand,” said the Minister of Finance after concluding the agreement with the United States.
“The role of the private sector is important because when we try to understand how to reduce or end the commercial imbalance, the private sector was the first constituent that came and said they will help,” said Aurangzeb.
During the last financial year, Pakistan exported $ 6 billion in the United States, compared to $ 2.4 billion, which obtained a surplus of $ 3.7 billion, a source of concern for President Donald Trump.
