US, Pakistan hold ‘productive’ talks on trade deal

Pakistan said its finance minister had “productive” discussions with top U.S. officials and that the two sides are optimistic about positive results after their latest meetings on Friday.

The United States is Pakistan’s largest trading partner with a $3 billion trade surplus in annual commerce.

However, the country faces the prospect of a 29% tariff on all exports to the United States as determined by President Donald Trump’s administration.

Finance Minister Muhammad Aurangzeb held a “productive” meeting with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative, Ambassador Jamieson Greer, in Washington, D.C., on Friday, the Pakistan embassy said.

US, Pakistan expected to conclude talks on trade deal this week

“Both sides expressed satisfaction with the progress in enhancing trade and economic ties, a cornerstone of Pakistan-U.S. bilateral relations,” the embassy said.

The two countries reaffirmed their commitment to exploring opportunities to strengthen these ties in all possible areas of mutual benefit.

President Trump’s reciprocal tariffs are expected to levy on imports from countries that are unable to strike a trade deal before the end of July.

Finance Minister Aurangzeb emphasized that the U.S. remains Pakistan’s largest trading partner and underscored his interest in expanding cooperation in both traditional and non-traditional sectors, including IT & tech sector, minerals, and agriculture, to foster a mutually beneficial relationship.

Recent upswing in US-Pakistan ties — A paradigm shift?

“Both parties expressed optimism that ongoing trade talks would yield positive outcomes, benefiting the economies of both countries,” the embassy said in a statement.

However, neither side has shared any specifics of the prospective deal so far.

Islamabad’s exports to the United States totaled $5.3 billion in 2024 which included a large share of textile products.

In recent weeks Pakistani officials have indicated that Islamabad might import more oil from the U.S. in an effort to rectify the trade imbalance.

President Trump recently said his administration is close to striking trade deals with both Pakistan and India.