Pakistan, US near breakthrough as trade talks enter final stage

• Aurangzeb returns home, dubs ongoing discussions ‘very constructive’
• Dar to visit US next week to attend high-level signature events

WASHINGTON/ISLAMABAD: Finance Minister Muhammad Aurangzeb has said that Pakistan and the United States are close to concluding a crucial trade agreement as negotiations in Washington entered their final phase.

Both sides expressed optimism that the deal would pave the way for a broader and more strategic economic partnership.

Mr Aurangzeb and his team returned to Pakistan early Saturday after two days of high-level talks in Washington.

In a statement after a key meeting on Friday with US Commerce Secretary Howard Lutnick and Trade Representative Ambassador Jamieson Greer, Mr Aurangzeb described the discussions as “very constructive” and pointed to “clear commitment from both sides” to resolve outstanding issues.

“We had a very constructive dialogue with Secretary Lutnick and Ambassador Greer,” said the finance minister. “There is a very clear commitment from both sides to get closure on the remaining items so that we can move towards the finishing line.”

Mr Aurangzeb was joined in the meetings by Pakistan’s Ambassador to the US Rizwan Saeed Sheikh and Commerce Secretary Jawad Paul.

“This is very important for us because the US is Pakistan’s largest trading partner,” he said. “It is critical that we move forward in the same positive spirit that has defined our discussions over the past few weeks and months.”

The talks are part of Pakistan’s ongoing efforts to shield its exports from steep US tariffs — currently at 29 per cent under President Donald Trump’s trade policy aimed at reducing American deficits with trading partners. Pakistan’s surplus stood at around $3 billion in 2024.

Islamabad has responded by offering to import more US goods, including crude oil, and by opening investment opportunities in key sectors such as mining, digital infrastructure, and technology.

A Pakistani delegation, led by Commerce Secretary Jawad Paul, also visited Washington in early July with the aim of finalising a long-term reciprocal tariff agreement that would prevent the re-imposition of the 29pc tariff on Pakistani exports.

Officials familiar with the negotiations say the talks were successful, with both sides agreeing to a broad framework.

Mr Aurangzeb said both sides agreed that the relationship should not be limited to trade alone. “We have to move beyond the immediate trade imperative,” he noted. “For the Pakistan-US relationship to move to the next level, investment is the key — and we believe areas like minerals, AI, and crypto could be real game changers.”

He also said that ongoing trade talks would soon be followed by a new phase of dialogue focusing on bilateral investment. “Trade is the starting point,” he explained, “but it will very quickly be followed through with investment discussions and real execution of the investment upside available to both sides — so that it becomes a real win-win for Pakistan and the United States.”

Sources close to the talks say that while a broad understanding has already been reached, a formal announcement is expected only after the US concludes similar deals with other partners.

The renewed momentum in US-Pakistan ties follows last month’s White House meeting between President Trump and Army Chief Field Marshal Asim Munir — the first such meeting in recent memory — signaling a strategic reset in the relationship.

Since the start of his second term, President Trump has signaled a desire to improve relations with Pakistan. In his inaugural address to Congress, he publicly thanked Pakistan for capturing and handing over a notorious terrorist, a gesture that was well received in Islamabad.

Dar to visit US

Meanwhile, Deputy Prime Minister and Foreign Minister, Senator Muhammad Ishaq Dar, is scheduled to visit the United States next week to attend the high-level signature events of Pakistan’s UN Security Council (UNSC) Presidency in New York, as well as to participate in various engagements in Washington. In New York, as part of Pakistan’s Security Council signature events, he will chair a high-level open debate on “Promoting International Peace and Security through Multilateralism and Peaceful Settlement of Disputes”.

In addition, Mr Dar will preside over the quarterly open debate of the Security Council on the “Situation in the Middle East including the Palestinian Question”.

He will also chair a high-level briefing of the UN Security Council that will focus on enhancing cooperation between the UN and the Organisation of Islamic Cooperation (OIC).

The deputy prime minister is scheduled to attend the high-level conference on “Peaceful Settlement of the Question of Palestine and the Implementation of Two-State Solution”.

Published in Dawn, July 20th, 2025