Pakistan has proposed a zero-tariff bilateral trade agreement with the United States, aiming to enhance trade volume and market access in key sectors.
According to reliable sources, the proposal includes eliminating tariffs on selected items, which could pave the way for increased exports from Pakistan to the American market. The initiative is part of broader efforts to strengthen bilateral economic cooperation following a recent thaw in Indo-Pak tensions.
The proposal reportedly came in the wake of US President Donald Trump's diplomatic engagement that helped ease hostilities between Pakistan and India. The ceasefire breakthrough appears to have opened a window for renewed trade dialogue between Islamabad and Washington.
“Pakistan is seeking better access to the US market across multiple sectors,” said a senior official familiar with the matter. “The zero-tariff arrangement would benefit both countries by fostering economic stability and regional growth.”
Also Read: India has offered US a trade deal with no tariffs: Trump
Earlier on Thursday, US President Donald Trump said India had offered the US a trade deal that proposed "no tariffs".
New Delhi is seeking to clinch a trade deal with the US within the 90-day pause announced by Trump on April 9 on tariff hikes for major trading partners, which had included a 26% tariff on India.
"It is very hard to sell in India, and they are offering us a deal where basically they are willing to literally charge us no tariffs," Trump said in a meeting with executives in Doha.
The United States is India's largest trading partner, with bilateral trade totalling some $129 billion in 2024. The trade balance is currently in favour of India, which runs a $45.7 billion surplus with the US.
Also Read: Pakistan, India DGMOs hold third contact to reaffirm ceasefire
Meanwhile, the directors general of military operations (DGMOs) of Pakistan and India held their third contact via the hotline on Wednesday in a continued effort to ease cross-border tensions.
The two sides agreed on practical steps to restore mutual confidence and uphold the ceasefire agreement, sources confirmed.
According to informed sources, the telephonic conversation took place on Wednesday, where both sides reiterated their commitment to maintaining peace along the Line of Control (LoC) and ensuring compliance with the existing ceasefire agreement.
Deputy Prime Minister and Foreign Minister Ishaq Dar confirmed in the Senate on Thursday that the ceasefire will hold till May 18.
