Washington (TDI): Finance Minister Muhammad Aurangzeb has engaged in high-level trade negotiations with top US officials in Washington, aiming to secure tariff concessions and deepen economic collaboration between the two countries.
A senior member of Prime Minister Shehbaz Sharif’s cabinet, when asked on Friday night about the talks, said optimistically, “We’re hopeful that trade negotiations will reach a conclusion soon”, The News reported on Saturday.
Although Finance Minister Aurangzeb remained tight-lipped in response to earlier inquiries about a possible visit to the US, he was later confirmed to have traveled to Washington. On Friday, he met with US Secretary of Commerce Howard Lutnick and US Trade Representative Ambassador Jamieson Greer.
These talks follow closely on the heels of a recent US visit by Pakistan’s Chief of Army Staff, Field Marshal Asim Munir. Both governments are reportedly working toward finalizing either a Preferential Trade Agreement (PTA) or a Bilateral Trade Treaty (BTT), the latter being a mechanism the US typically pursues with nations running substantial trade surpluses.
Read More: Aurangzeb Stresses Tariff Reforms as Key to Export-Led Growth
Officials familiar with the discussions revealed that Pakistan may gain favourable tariff reductions on textile exports, currently facing duties of around 10%, in exchange for easing import restrictions on American cotton and soybeans. The proposed measures are designed to be compliant with World Trade Organization (WTO) rules, the paper added.
Observers note that the talks come at a critical juncture. With the US already operating nearly 970 R&D centers in India, Pakistan’s negotiators are under pressure to secure tangible advantages. A past initiative, the Reconstruction Opportunity Zones (ROZs) proposed after 9/11, fell through despite Pakistan’s considerable sacrifices in the war on terror.
One potential outcome could be up to $2–3 billion annually in support for Pakistan’s textile exports, a sector that has long sought tariff relief in US markets.
Read More: Pakistan Is Transforming and Open for Business: Finance Minister Aurangzeb
A statement from Pakistan’s finance ministry confirmed that the meeting had been “productive,” with both sides expressing satisfaction over the progress and reaffirming their commitment to enhancing economic ties.
Minister Aurangzeb stressed the strategic value of the US as Pakistan’s top trading partner and emphasized potential for growth in sectors like information technology, agriculture, and minerals.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight. He is a seasoned journalist and analyst with over a decade of experience in the media industry. He has deep expertise in national politics and international relations and regularly contributes as an analyst to national and international media outlets.
