ISLAMABAD: Pakistan and the United States have reported substantial progress in negotiations on the proposed Pakistan US trade agreement, with both sides agreeing to continue close cooperation to finalise the reciprocal trade framework at the earliest.
The commitment was made during a virtual meeting between Finance Minister Muhammad Aurangzeb and US Trade Representative Ambassador Jamieson Greer. According to a statement issued by the Ministry of Finance, the discussions focused on reviewing ongoing negotiations aimed at expanding bilateral trade and strengthening economic cooperation.
Pakistan US Trade Agreement Negotiations Gain Momentum
During the meeting, Finance Minister Muhammad Aurangzeb welcomed the steady progress achieved by the negotiating teams and praised the constructive engagement maintained throughout the discussions.
He stressed that sustaining the pace of negotiations was essential to Pakistan’s economic priorities. The minister said stronger trade and investment ties with the United States would support Pakistan’s export-led growth strategy, improve economic resilience and create new business opportunities for companies in both countries.
Aurangzeb also highlighted the importance of continued cooperation with the US Export-Import Bank (EXIM) to encourage greater bilateral trade and investment.
Trade Framework Follows Earlier Tariff Discussions
The latest negotiations build on earlier efforts between Islamabad and Washington to establish a reciprocal trade arrangement.
In July last year, both countries reached a trade understanding ahead of US President Donald Trump’s August 1 deadline for reciprocal tariffs. Following talks with the Office of the United States Trade Representative (USTR), Washington reduced the proposed reciprocal tariff on Pakistani exports from 29 percent to 19 percent.
However, the arrangement was interrupted in February after the US Supreme Court ruled, by a 6-3 majority, that the White House had exceeded its constitutional authority by imposing broad tariffs under the International Emergency Economic Powers Act (IEEPA), effectively invalidating that policy.
The Trump administration later invoked Section 122 of the Trade Act of 1974 to introduce a temporary 10 percent global tariff for a period of up to 150 days.
US Appreciates Pakistan’s Reform Efforts
Ambassador Jamieson Greer acknowledged Pakistan’s consistent engagement during the negotiations and welcomed the progress made on labour and regulatory reforms, including measures related to forced labour compliance.
He reaffirmed the United States’ commitment to advancing bilateral trade discussions and expressed confidence that the remaining issues could be resolved through continued technical negotiations.
Finance Minister Aurangzeb emphasised the need for close coordination and faster technical-level discussions to build on the progress already achieved.
Both countries agreed to continue regular engagement and work closely to complete the remaining elements of the Pakistan US trade agreement framework as soon as possible.
Federal Secretary for Commerce Jawad Paul and senior officials from the Office of the US Trade Representative also participated in the meeting.
The latest progress in the Pakistan US trade agreement negotiations reflects the commitment of both countries to deepen trade relations, expand investment opportunities and strengthen long-term economic cooperation.