Pakistan and the United States are set to finalize ongoing trade negotiations on reciprocal tariffs by next week, the Ministry of Finance announced on Wednesday. The progress follows a virtual meeting between Finance Minister Muhammad Aurangzeb and U.S. Commerce Secretary Howard Lutnick.
The negotiations come in response to potential U.S. tariffs of up to 29% on Pakistani exports, prompted by Washington’s concerns over Pakistan’s $3 billion trade surplus with the United States. These tariffs, announced last month as part of a global trade adjustment policy, have been temporarily suspended for 90 days to allow for bilateral talks.
In an effort to resolve the issue, Islamabad previously sent a high-level trade delegation to the United States and proposed a zero-tariff bilateral agreement, offering significant economic concessions to Washington.
As part of its strategy to balance trade, Pakistan has also offered to increase imports of key U.S. goods, including cotton and edible oils — both of which are in short supply domestically.
According to the Finance Ministry, discussions focused on “meaningful engagement in trade, investment, and deepening economic ties,” adding that technical-level talks are expected to conclude next week.
Both sides expressed interest in building a broader strategic and investment-oriented partnership. The ministry noted that a formal framework for this expanded relationship would be developed in the near future.
In a related development, the two countries co-hosted a webinar earlier this week to promote investment in Pakistan’s mineral sector, notably the $7 billion Reko Diq copper-gold project. The event was attended by senior government officials and American investors, who explored opportunities for public-private partnerships and regulatory reforms in Pakistan.
Former U.S. President Donald Trump, who previously brokered a ceasefire between Pakistan and India, has credited trade engagement as a tool to reduce tensions between the two neighbors.
