ISLAMABAD — Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick have agreed to conclude technical-level negotiations on reciprocal tariffs by next week, as Pakistan seeks to avoid sweeping US trade penalties.
The development followed a virtual meeting held on Tuesday to discuss ongoing trade discussions, the Finance Division said in a statement on Wednesday. “Both sides showed satisfaction on the ongoing negotiations and resolved to conclude the trade negotiations next week,” it said.
The meeting focused on strengthening bilateral engagement in trade and investment. Officials also agreed to work toward a broader strategic and investment partnership covering mutually beneficial areas.
The talks are part of Pakistan’s effort to secure relief from steep tariffs imposed by former US President Donald Trump. In April, Trump reintroduced sweeping levies on key trading partners, including a 29% reciprocal tariff on Pakistani exports. While those duties are currently suspended until July, Islamabad has been actively engaging US authorities to resolve the issue before the deadline.
To that end, a Pakistani trade delegation is already in Washington to pursue concessions and propose measures aimed at narrowing the trade gap. Pakistan exported over $5 billion worth of goods to the US in 2024, while importing around $2.1 billion, making the US Pakistan’s largest export destination.
In a recent interview with Bloomberg, Aurangzeb had said Pakistan was willing to increase imports from the US and eliminate non-tariff barriers as part of a broader trade package designed to avoid punitive duties.
Both countries have expressed confidence that the negotiations will be wrapped up soon, averting a potential trade setback.
