Pakistan and the United States have completed an important round of trade negotiations. According to a report by the newspaper Dawn on Saturday, Pakistan has reached an agreement with the U.S. that could shape the future of its key export sectors.
The recently concluded round of trade talks between Pakistan and the U.S. may prove to be a turning point in the economic relations between the two countries. The four-day talks were held in Washington, where Pakistan’s delegation was led by Commerce Secretary Jawad Paul.
The primary objective of the talks was to finalize a long-term countervailing duty agreement aimed at securing protection for Pakistan’s major export sectors—especially textiles and agricultural products—in the U.S. market.
The backdrop to this agreement involves a proposed 29% tariff by the U.S. on Pakistani exports. This tariff had been temporarily suspended, but if no concrete agreement had been reached by July 9, it was set to be reimposed. Thus, the negotiations were critically important for Pakistan, as the reinstatement of the tariff could have delivered a major blow to its export industry.
According to reports, both sides have agreed on a comprehensive framework, although a formal announcement will only be made after the U.S. concludes ongoing negotiations with other trade partners. The agreement was reached just days before the July 9 deadline, signaling that both countries managed to find a practical solution in time.
If implemented, the agreement will prevent the reimposition of the 29% tariff on Pakistani textiles and agricultural goods, giving these sectors a competitive edge.
Pakistan may increase imports of U.S. crude oil and other commodities under the deal.
The agreement could open up avenues for U.S. investment in Pakistan’s mining, energy, and infrastructure sectors. Projects like the Reko Diq copper and gold mine were a focal point of discussions.
The deal could also enhance financial cooperation through the U.S. Export-Import Bank.
The successful outcome of these talks is a positive signal for Pakistan’s path toward economic stability, particularly at a time when it is relying on institutions like the IMF to manage its economy. For the U.S., the agreement represents an opportunity to strengthen its strategic and economic footprint in South Asia.