Pakistan, US Expected to Finalize Trade Deal Next Week

Pakistan and the United States are close to finalizing a major trade agreement after months of talks aimed at enhancing bilateral trade and investment ties. Both countries expressed satisfaction over the progress during a high-level virtual meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick held on 2025.

The meeting focused on addressing reciprocal tariffs and establishing a broader economic partnership that serves the strategic and commercial interests of both nations.

• A virtual meeting was held on 2025, at 2030 hours PST between Pakistan’s Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick.

• Both sides expressed satisfaction with ongoing negotiations and are confident of concluding the trade deal next week.

• Talks covered reciprocal tariffs, trade facilitation, and strengthening investment ties.

• Discussions included plans for a strategic partnership covering investment and key areas of mutual interest.

• Technical-level discussions are scheduled to wrap up next week, paving the way for a formal agreement.

The virtual meeting primarily addressed the issue of reciprocal tariffs, with both countries seeking to reduce barriers that hamper the flow of goods and services. The aim is to create a more balanced and fair trading environment.

Pakistan and the US agreed to work on initiatives that promote direct investment, joint ventures, and technology transfer, helping both economies grow.Besides trade, both parties resolved to build a long-term partnership focusing on sectors such as:

• Technology and innovation

• Energy cooperation

• Agriculture and food security

• Infrastructure development

• Finance Minister Muhammad Aurangzeb appreciated the positive attitude of the US delegation and underlined Pakistan’s desire for a deal that brings prosperity and jobs.

• Commerce Secretary Howard Lutnick emphasized that the US is committed to supporting Pakistan’s economic growth through trade and investment.

Both sides expressed confidence that the trade negotiations would be concluded at the earliest possible time, possibly next week.

For Pakistan:

• Enhanced access to US markets for Pakistani products.

• Opportunity for increased foreign direct investment (FDI) from the US.

• Boost for export-oriented sectors like textiles, agriculture, IT, and engineering goods.

For the US:

• Access to Pakistan’s growing market of over 240 million people.

• New opportunities for American businesses in sectors like energy, IT, and consumer goods.

• Strengthening strategic ties in a key South Asian economy

mproved Trade Balance — Reduced tariffs can help Pakistan increase exports to the US, addressing its trade deficit.

Job Creation — More trade and investment mean potential job creation in both nations.

Technology Transfer — The deal is likely to encourage partnerships that bring advanced technologies to Pakistan’s industries.

Investor Confidence — A finalized trade agreement can signal stability and openness, encouraging further foreign investments.

• The deal can position Pakistan as a regional trade hub, especially as it looks to benefit from CPEC and other regional connectivity projects.

• For the US, it strengthens its presence and influence in South Asia, at a time when economic engagement is becoming central to foreign policy.

The latest high-level engagement between Pakistan and the United States marks a major step toward concluding a comprehensive trade deal that could reshape economic ties between the two nations. With both sides expressing optimism and commitment, the agreement is expected to provide mutual benefits in trade, investment, and strategic cooperation.