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Pakistan, US conclude critical round of trade negotiations.


Date: 05-07-2025
Subject: Pakistan, US conclude critical round of trade negotiations
Pakistan and the US have concluded a critical round of trade negotiations, reaching an understanding on a deal that could shape the future of the country's key export sectors, a media report said on Saturday.

The understanding was reached with less than a week before the July 9 deadline to conclude the talks in Washington, where Commerce Secretary Jawad Paal led the Pakistan delegation to finalise a long-term reciprocal tariff agreement that would prevent the re-imposition of a 29 per cent tariff on Pakistani exports, primarily textiles and agricultural products.

The tariff relief, temporarily paused earlier this year, was at risk of expiring if no progress had been made by July 9.

Officials familiar with the negotiations said the four-day talks were successful, with both sides agreeing to a broad framework.

The agreement, when signed, could lead to increased Pakistani imports of US goods - notably crude oil - and potential American investment in Pakistan's mining, energy, and infrastructure sectors.

Projects like the Reko Diq copper and gold mine and related energy infrastructure were a focus of the discussions.

The deal could also pave the way for expanded engagement through the US Export-Import Bank.

Although US Treasury Secretary Scott Bessent earlier indicated that Washington might allow limited flexibility on the deadline if meaningful pro-g-ress was evident, Pakistani officials said they pushed for early conclusion of negotiations to remove uncertainty for exporters and investors.

Officials remain optimistic that the agreement will sustain Pakistan's access to the US market and help reset bilateral economic ties under strain since the high tariffs were introduced during the Trump ..


Source Name : Economic Times

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