By Staff Reporter
KARACHI: Finance Minister Muhammad Aurangzeb is in the United States to negotiate Washington’s demands as part of trade talks ahead of an August deadline, Bloomberg reported on Friday.
Aurangzeb’s visit follows an earlier Pakistani delegation being presented with an exhaustive list of demands from the US to reduce tariff and non-tariff barriers as preconditions for a trade deal. Islamabad had initially anticipated concluding the agreement by early July, but the pace of negotiations has been slower than expected.
The Ministry of Finance stated last week that trade negotiations have made encouraging progress. Pakistan is particularly keen to secure relief from the 29% tariff currently imposed on its exports and has offered to increase imports of American cotton and soybeans. The US remains Pakistan’s largest export market, with Pakistan standing as the second-largest buyer of US cotton in South Asia after China.
Relations between Islamabad and Washington have seen a marked improvement following a prolonged diplomatic chill. This thaw was underscored by US President Donald Trump’s warm reception of Field Marshal Asim Munir at the White House last month, after which Pakistan recommended Trump for the Nobel Peace Prize for his role in resolving the Pakistan-India war.
During the encounter, Trump “lauded Pakistan’s ongoing efforts for regional peace and stability, and appreciated the robust counterterrorism cooperation between the two states”.
In April, Pakistan signed a memorandum of understanding with the Trump family’s World Liberty Financial and is adopting a more accommodating stance towards the crypto industry, signaling a broadening of economic ties.
Pakistan’s trade deficit with the US currently stands at approximately $3 billion, a figure the country hopes to reduce through continued talks and expanded cooperation.
On Friday, Aurangzeb met with US Secretary of Commerce Howard Lutnick and United States Trade Representative Ambassador Jamieson Greer in Washington to strengthen trade ties.
The finance ministry stated that the meeting was productive, with both sides satisfied with the progress made in enhancing bilateral trade relations. “They reaffirmed their commitment to exploring opportunities to strengthen these ties in all possible areas of mutual benefit,” the ministry’s statement read.
The finance ministry further noted that both parties “expressed optimism” that the ongoing trade talks would yield positive outcomes and economic benefits for Islamabad and Washington.
Aurangzeb emphasized that the US remains Pakistan’s largest trading partner and underscored Pakistan’s interest in expanding cooperation in traditional and non-traditional sectors, including IT, technology, minerals, and agriculture, to foster a mutually beneficial relationship.
In a related development, the Pakistan Crypto Council partnered with World Liberty Financial, a decentralized finance platform backed by Trump, in April to advance cryptocurrency applications and boost blockchain adoption, further deepening economic collaboration.
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