Finance Minister Muhammad Aurangzeb travelled to Washington for high-level trade talks with the Trump administration on Friday, marking a significant step in negotiations for a potential trade deal.
During his visit, Aurangzeb met with US Secretary of Commerce Howard Lutnick and United States Trade Representative Ambassador Jamieson Greer.Â
According to media reports, the discussions are focused on finalising either a Preferential Trade Agreement (PTA) or a Bilateral Trade Treaty (BTT), sources indicate. The US has been actively pursuing such agreements with countries where it faces large trade deficits.
The two sides are considering a deal that would grant Pakistan favorable textile tariffs in exchange for incentivised tariffs on American cotton and soybean exports to Pakistan. The agreement is also expected to include WTO-compliant incentives, which could enhance trade relations between the two countries.
Pakistan currently enjoys a trade surplus with the US, exporting $5.1 billion while importing $2.1 billion, yielding a $3.1 billion surplus. In a bid to further improve trade, Pakistan’s imports of US cotton and soybean may see tariff rationalization under the newly introduced National Tariff Policy for 2025-26.
Both sides are optimistic that the ongoing talks will lead to a mutually beneficial agreement, with Aurangzeb highlighting the importance of expanding cooperation in sectors like IT, minerals, and agriculture.
In the past, initiatives like the Reconstruction Opportunity Zones (ROZs) failed to deliver despite Pakistan’s economic contributions. This time, negotiators are determined to secure a favorable outcome that will benefit Pakistan’s key industries, particularly textiles.
