Pakistan, US reach accord on trade and tariffs
WASHINGTON: With less than a week to go before the July 9 deadline, Pakistan and the United States have concluded a critical round of trade negotiations, reaching an understanding on a deal that could shape the future of the country’s key export sectors.
The Pakistani delegation, led by Commerce Secretary Jawad Paal, was scheduled to return on Friday after completing four days of talks in Washington.
While both sides have reached an understanding, a formal announcement is expected only after the US concludes similar ongoing negotiations with other trade partners.
The delegation arrived in Washington on Monday with the aim of finalising a long-term reciprocal tariff agreement that would prevent the re-imposition of a 29 per cent tariff on Pakistani exports — primarily textiles and agricultural products.
Formal announcement expected once Washington wraps up talks with other nations
The tariff relief, temporarily paused earlier this year, was at risk of expiring if no progress had been made by the July 9 deadline.
Officials familiar with the negotiations say the talks were successful, with both sides agreeing to a broad framework.
The agreement, when signed, could lead to increased Pakistani imports of US goods — notably crude oil — and potential American investment in Pakistan’s mining, energy, and infrastructure sectors.
Projects like the Reko Diq copper and gold mine and related energy infrastructure were a focus of the discussions. The deal could also pave the way for expanded engagement through the US Export-Import Bank.
Although US Treasury Secretary Scott Bessent had earlier indicated that Washington might allow limited flexibility on the deadline if meaningful progress was evident, Pakistani officials say they pushed for early completion to remove uncertainty for exporters and investors.
Officials remain optimistic that the agreement will sustain Pakistan’s access to the US market and help reset bilateral economic ties, which had been under strain since the high tariffs were introduced during the Trump administration.
Published in Dawn, July 5th, 2025