Pakistan, US agree to speed up trade deal after virtual tariff talks

By Staff Reporter

ISLAMABAD: Pakistan and the United States have agreed to accelerate trade deal talks, with the goal of finalizing it “at the earliest,” after a virtual meeting between Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick held to discuss US reciprocal tariffs on Pakistani exports.

President Donald Trump’s administration levied tariffs on several countries, including Pakistan. Washington slapped a 29% duty on Pakistani exports, part of a broader policy the US says is designed to tackle trade imbalances and ensure fair treatment of American goods. Yet, the levies have drawn sharp criticism for threatening global economic recovery efforts still reeling from the COVID-19 pandemic.

The US remains Pakistan’s largest export market, with $5.44 billion in goods shipped in 2024. From July 2024 to February 2025, exports climbed 10% year-on-year to $4 billion. Textiles, making up 90% of those shipments, face the brunt of the tariffs, jeopardizing Pakistan’s export-led growth plan. Islamabad initiated formal negotiations on US high tariffs last month.

“Further to Pak-US negotiations on US reciprocal tariffs, a virtual meeting took place between Muhammad Aurangzeb, Pakistan’s Finance Minister, and Howard Lutnick, United States’ Commerce Secretary, on June 16, 2025,” the finance ministry said in a statement on Tuesday. “Both sides resolved to carry forward their negotiations through constructive engagement to finalize the trade deal at the earliest.”

Speaking at an event in Islamabad on Tuesday, Aurangzeb described his conversation with Lutnick the previous night as “constructive and positive.” “Both countries are moving in the right direction,” he said.

Aurangzeb emphasized that the talks zeroed in on deepening trade and investment ties, with both sides committed to advancing negotiations on the tariffs through constructive engagement to wrap up the trade deal as soon as possible. “Both sides also agreed that further technical-level discussions would take place in the coming days, following a mutually agreed roadmap,” he added.

The finance ministry statement said additional technical discussions are slated for the near term based on a shared plan.
Tensions in the Middle East have delayed the tariff talks, as two high-level Pakistani visits to the US—one by Deputy Prime Minister Ishaq Dar and a trade delegation—were postponed this week.