A Pakistani delegation, headed by Commerce Secretary Jawad Paal, arrived in Washington on Monday to finalize a trade agreement with the United States. The deal aims to recalibrate economic relations between the two nations and address the tensions caused by high import tariffs imposed during President Donald Trump’s administration.
On Monday, a Pakistani delegation led by Commerce Secretary Jawad Paal landed in Washington to finalize a trade agreement with the United States, marking a significant step in the two countries’ efforts to reset their economic ties. The ongoing talks, which have been underway for over a month, are expected to conclude this week, according to the Finance Ministry.
The delegation is scheduled to meet with US Trade Representative Jamieson Greer and senior officials from various US departments to discuss key issues, including reciprocal tariffs. Pakistan currently faces a hefty 29 percent tariff on its exports to the US. These discussions are part of a broader initiative aimed at easing tensions stemming from these tariffs and improving trade relations.
The talks have focused on addressing the trade imbalance between the two countries, with Pakistan offering to increase its imports of American goods, such as crude oil, and expand opportunities for US investment, particularly in Pakistan’s mining sector. As part of the ongoing negotiations, a long-term strategic partnership, including investment opportunities, is also being explored.
Pakistan’s trade surplus with the US reached approximately $3 billion in 2024, and the country is keen to reduce the tariff burden and create new avenues for economic cooperation. “Both sides have expressed satisfaction with the ongoing negotiations and are committed to concluding the trade talks next week,” the Finance Ministry stated.
In addition to the trade talks, both governments co-hosted a webinar last week to promote investment in Pakistan’s mineral sector, with particular focus on the $7 billion Reko Diq copper-gold project in Balochistan. This initiative aims to foster public-private partnerships and regulatory reforms to attract foreign capital to the country.
The US Export-Import Bank is currently reviewing financing proposals for the Reko Diq project, with amounts ranging between $500 million and $1 billion. This is part of a broader strategy to deepen economic collaboration between the two countries, particularly in resource-driven sectors.
US Treasury Secretary Scott Bessent, in an interview with Fox Business, mentioned that the administration is working on trade deals with 18 “important trading partners,” with expectations to finalize several agreements in the coming weeks. Bessent indicated a more flexible timeline for finalizing these deals, suggesting they could be completed by Labor Day.
President Donald Trump has previously emphasized using trade negotiations as leverage to ease hostilities between Pakistan and India. US officials have noted that completing trade agreements with both countries could help stabilize the region and foster broader economic cooperation.
