Final Trade Talks Between Pakistan and US

With the July 9, 2025, tariff deadline approaching, Pakistan and the United States are in the final stages of trade negotiations to secure a deal that could shape Pakistan’s export sectors. A Pakistani delegation, led by Commerce Secretary Jawad Paal, is in Washington to finalize a reciprocal tariff agreement, aiming to prevent the reimposition of a 29% US tariff on Pakistani exports, primarily textiles, which account for 90% of its US shipments.

The talks, ongoing since June, involve Pakistan offering increased imports of US goods, such as crude oil and cotton, and investment opportunities in its mining sector, including the Reko Diq copper-gold project. The US seeks greater market access for its agricultural products, raising concerns in Pakistan about potential impacts on local farmers. Posts on X indicate optimism about concluding the deal this week, though some users highlight challenges due to the trade imbalance and Pakistan’s $3 billion surplus with the US, which prompted the initial tariff threat.

Recent high-level engagements, including virtual meetings between Pakistan’s Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick, reflect a commitment to a mutually beneficial agreement. The negotiations also aim to strengthen bilateral economic ties amid shifting geopolitical dynamics, with Pakistan proposing incentives for US firms in energy and IT sectors.

Published in SouthAsianDesk, July 3rd, 2025

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