Pakistan concluded a highly anticipated trade agreement with the United States on Thursday before the US President of US President Donald Trump who is expected to expire on Friday (tomorrow) – after which Washington will impose a higher rate against countries on a reciprocal basis.
The development came while the Minister of Finance Muhammad Aurangzeb reached a breakthrough with the Trump administration at a meeting with the American secretary to trade Howard Lutnick and the ambassador of the American representative Jamieson Greer.
“We have just concluded an agreement with the country of Pakistan,” said President Trump in an article on verification.
Although specific details have not appeared either of Islamabad or Washington on the Trade Agreement, the Ministry of Finance said that the agreement “would lead to a reduction in the reciprocal rate, in particular on Pakistani exports to the United States” – leading to a new start in bilateral economic cooperation.
The agreement, adds the ministry, aims to stimulate bilateral trade, improve market access, attract investments and strengthen cooperation in the fields of mutual interest.
Expolving a key aspect of the trade agreement, President Trump said that the two countries “will work together to develop their massive oil reserves” and were currently “choosing the oil company” which will lead this partnership.
Under this understanding, Pakistan and the United States will also focus on energy, minerals, information technologies, cryptocurrency and other key areas.
The trade agreement likely to attract American investments, Finmin Aurangzeb said that development reflected a broader economic and strategic partnership that was now taking shape.
It is relevant to mention that Pakistan has faced a potential 29% price on exports to the United States under the prices announced by Washington in April on countries around the world. The prices were then suspended for 90 days so that negotiations can take place.
The prices, if they had entered into force, would have had a significant impact, because the total trade of American products with Pakistan was estimated at $ 7.3 billion in 2024, according to the website of the Office of the American commercial representative, against around $ 6.9 billion in 2023.
The American trade deficit of products with Pakistan was $ 3 billion in 2024, an increase of 5.2% compared to 2023.
– with an additional reuters input
