Breakthrough in US-Pakistan Trade Relations as Tariff Deal Finalized

Pakistan and the United States have finalized an agreement on trade and tariffs, securing a deal that protects Pakistan’s export sectors, particularly textiles and agriculture, from a looming 29% tariff. The negotiations, concluded just before the July 9, 2025, deadline, mark a significant step in strengthening bilateral economic ties.

Led by Pakistan’s Commerce Secretary Jawad Paal, the talks in Washington focused on a long-term reciprocal tariff framework. The agreement ensures continued access for Pakistani goods to the US market, which accounts for $5.44 billion in exports annually, with textiles making up nearly 90% of the total. In return, Pakistan has committed to increasing imports of US goods, including crude oil, and opening investment opportunities in its mining, energy, and infrastructure sectors, such as the $7 billion Reko Diq copper-gold project.

The deal addresses tensions stemming from tariffs imposed during the previous US administration, which had strained economic relations. Pakistani officials emphasized the need for a swift resolution to provide certainty for exporters and investors. The agreement also paves the way for enhanced collaboration through the US Export-Import Bank, facilitating financial support for joint projects.

Sentiment on social media platforms reflects optimism, with posts highlighting the deal’s potential to bolster Pakistan’s economy and reinforce the US as its top export destination. While a formal announcement is pending as the US concludes similar talks with other nations, both sides express confidence in the framework’s mutual benefits.

This accord positions Pakistan to maintain its competitive edge in the US market while fostering deeper economic cooperation, offering a balanced approach to trade and investment.

Published in SouthAsianDesk, July 5th, 2025

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