Washington: US President Donald Trump has confirmed the finalisation of a trade agreement between the two countries, a move that signals growing trust and deepening economic ties between Islamabad and Washington.
The announcement comes as India, still scrambling to finalise a trade deal with Washington, finds itself under growing pressure, staring down hefty 25% tariffs and the risk of penalties over its continued energy ties with Russia. We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,” Trump wrote on social media.
“We are in the process of choosing the Oil Company that will lead this Partnership.” According to the Ministry of Finance, the breakthrough came during Finance Minister Muhammad Aurangzeb’s meeting with the US Secretary of Commerce and Trade Representative. Pakistan’s Ambassador to the US, Rizwan Saeed Sheikh, and Commerce Secretary Jawad Paul were also present.
“The purpose of the deal is to boost bilateral trade, improve market access, attract investment, and strengthen cooperation in areas of mutual interest,” the official statement said.
“Under the agreement, there will be a reduction in tariffs, particularly on Pakistani exports to the US, and a fresh start in economic cooperation between the two countries. The two sides will focus on energy, minerals, information technology, cryptocurrency, and other key areas, the statement added.
It added that the agreement would help grow Pakistan’s trade ties with the US and improve access to each other’s markets. “It is also expected to draw more US investment into Pakistan’s infrastructure and development projects.”
Finance Minister Senator Muhammad Aurangzeb said that Pakistan and the United States had agreed to move trade and investment hand in hand, following a key meeting in Washington.
Speaking after talks with US Commerce Secretary Howard Lutting and Trade Representative Jameson Greer, Aurangzeb described the meeting as constructive and said the two sides finalised the trade agreement during the discussion.
“This deal reflects a broader economic and strategic partnership that’s now taking shape,” he said.
The minister thanked all those involved in the negotiations, saying the private sector had played a vital role and would continue to be supported, especially in helping to reduce the trade imbalance.
US total goods trade with Pakistan was an estimated $7.3 billion in 2024, according to the website of the Office of the US Trade Representative, up from around $6.9 billion in 2023. The US goods trade deficit with Pakistan was $3 billion in 2024, a 5.2% increase over 2023.
