Finance Minister Muhammad Aurangzeb has reached the United States on a crucial visit aimed at finalizing a long-awaited bilateral trade agreement with Washington.
According to sources within the Finance Ministry, significant progress is expected in the ongoing negotiations, which come ahead of an August deadline set for concluding the deal.
During his visit to Washington, Minister Aurangzeb is holding high-level discussions with senior US officials to address key points of contention, particularly tariff and non-tariff barriers. US authorities have reportedly urged Pakistan to make substantial reductions in these areas to pave the way for the agreement.
Finance Ministry insiders told Samaa TV that a breakthrough is anticipated soon, and a formal statement from Washington may be issued in the coming days to reflect the progress made.
While in the US, Finance Minister Aurangzeb held meetings with his US counterpart and the United States Trade Representative, reaffirming Pakistan's commitment to fostering strong, inclusive trade and investment relations between the two countries.
All parties expressed optimism about achieving positive progress in the ongoing Pakistan-US Trade Dialogue.
According to a Bloomberg report, the United States earlier provided Pakistan with a detailed list of prerequisites that must be met for the trade deal to proceed. These included commitments to reduce import tariffs, resolve market access issues, and expand bilateral trade flows.
Despite a slower-than-expected pace of negotiations, Bloomberg maintains that Pakistan is trying to appease the US to get relief from the mutually imposed tariffs. The finance minister is said to be optimistic about reaching a mutually beneficial agreement.
"We are making encouraging progress, and the talks have become more productive after recent diplomatic engagements," a source quoted him as saying. Bloomberg says Pakistan had expected to complete the deal in early July.
Bloomberg also highlighted signs of improving relations between Islamabad and Washington following a prolonged diplomatic freeze. Last month, the White House extended an unusually warm welcome to Pakistan’s army chief — a development viewed as a thaw in ties between the two nations that helped with progress in trade talks. Later, Pakistan even recommended US President Donald Trump for the Nobel Peace Prize.
The recent diplomatic outreach appears to have helped reinvigorate trade talks. Pakistan is seeking a waiver on a hefty 29% tariff imposed on several of its exports and hopes to reduce its $3 billion trade deficit with the United States.
Additionally, Islamabad has offered to increase imports of US cotton and soybeans as a gesture of goodwill. The US remains Pakistan’s largest export destination, while Pakistan is South Asia’s second-largest buyer of American cotton after China.
The Bloomberg report further noted that Pakistan is currently taking a soft stance on the crypto industry and has signed a memorandum of understanding (MoU) with World Liberty Financial — a firm linked to the Trump family — back in April, possibly to attract future investment.
