Pakistan and the United States have reaffirmed their commitment to deepening economic cooperation, agreeing to move forward with a new trade agreement aimed at expanding market access, attracting investment, and fostering collaboration in key sectors.
The announcement followed a high-level meeting between Natalie Baker, Chargé d’Affaires of the US Embassy, and Finance Minister Muhammad Aurangzeb at the Finance Division on Friday. Discussions focused on enhancing bilateral trade and commerce, and increasing US investment in Pakistan.
The meeting comes after the recent imposition of a 19% reciprocal tariff on Pakistani goods by the US administration, a reduction from the initially proposed 29%, under an executive order signed by President Donald Trump. Pakistan’s revised tariff rate is among the lowest in the region compared to India (50%), Bangladesh (20%), Vietnam (20%), and Sri Lanka (20%).
Aurangzeb highlighted the positive impact of Pakistan’s recent economic reforms, noting the upgrade in Pakistan’s credit ratings by Moody’s, which also aligned with other major rating agencies’ assessments. The finance minister emphasized that the reforms, particularly in tariffs, were crucial for liberalizing trade and driving export-led growth.
Aurangzeb also expressed optimism about the trade agreement, hoping it would lead to increased US investment in Pakistan’s infrastructure, digital, and mining sectors. Baker emphasized the importance of the agreement, pointing to growing interest from US companies in Pakistan’s supply chain, energy, and mining sectors.
Both sides agreed to work closely to advance the trade pact, which aims to strengthen the economic ties between the two nations.
