Pakistan, US move toward trade deal with focus on investments, tariff relief

Pakistan and the United States are in talks to finalise details of a trade agreement that includes US investment commitments in key sectors. 

Minister of State for Finance Bilal Azhar Kayani told Bloomberg TV that the agreement will be negotiated further in the coming months, with Islamabad seeking improved tariff terms for key exports and investment pledges in energy, mines, and minerals.

Finance Minister Muhammad Aurangzeb, returning from Washington after trade talks, said Pakistan would soon hear announcements of substantial US investments across multiple sectors. He described the negotiations as a success, adding that both sides achieved mutually beneficial outcomes.

According to the finance ministry, the agreement is expected to strengthen economic cooperation in areas including energy, minerals, information technology, and cryptocurrency. 

While neither side disclosed specific tariff levels, Pakistan had earlier faced the possibility of a 29% tariff. This was suspended, along with similar measures on other countries, to allow trade talks until the August 1 deadline.

Islamabad is aiming for a tariff lower than those imposed on regional competitors, including Vietnam’s 20% and India’s proposed 25% under the Trump administration.