Washington (TDI): With the clock ticking toward a July 9 deadline, Pakistan and the United States have reached a key understanding on trade and tariffs after four days of intensive negotiations in Washington, a move that could significantly impact Pakistan’s export landscape.
Led by Commerce Secretary Jawad Paal, the Pakistani delegation wrapped up talks aimed at finalizing a reciprocal trade arrangement that would prevent the reinstatement of a steep 29% tariff on major Pakistani exports, particularly textiles and agricultural goods.
While both sides have agreed on a broad framework, a formal announcement is expected only after the United States concludes similar discussions with other trade partners. The outcome is seen as crucial for sustaining Pakistan’s current access to the US market.
The understanding reached during the talks is likely to attract renewed American interest in Pakistan’s key sectors, particularly mining, energy, and infrastructure.
According to officials familiar with the discussions, specific focus was placed on major initiatives such as the Reko Diq copper and gold project and the energy infrastructure tied to it, according to Dawn. Their aim was to remove lingering uncertainty for exporters and investors back home.
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Officials say the talks also touched on the possibility of working with the US Export-Import Bank, which could help fund infrastructure and development projects in Pakistan if the agreement moves forward.
Though there was some talk in Washington of a possible extension beyond the July 9 deadline, Pakistani officials pushed hard to finalize the deal this week, hoping to ease growing concerns among exporters and investors.
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If signed, the agreement would mark a step toward mending economic relations between Islamabad and Washington, ties that have been tested in recent years due to tariff hikes imposed during the Trump administration.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
