Finance Minister Aurangzeb embarks on a trip to the United States, aiming to finalize a trade agreement as the August 1 deadline approaches.
Pakistan and US Nearing Final Stages of Trade Deal Negotiations
The trade deal negotiations between Pakistan and the United States are currently in their final phase, with high-level talks underway to finalize a comprehensive trade agreement expected within days. Finance Minister Muhammad Aurangzeb recently traveled to the U.S. for concluding discussions with senior U.S. officials [1][2][3].
The talks have a strong focus on tariff terms, trade diversification, digital trade issues, and fostering a more strategic economic partnership [1][2][3][4].
Reciprocal tariffs have been a key point of discussion, with the aim being to agree on tariff rates that are competitive or better than Pakistan's peers with the U.S. [1][3]. Pakistan is keen to grow cooperation in sectors such as information technology, agriculture, minerals, energy, and mining, aiming to diversify beyond traditional goods and attract U.S. investment [1].
Pakistan recently exempted the U.S. from a 5% tax on foreign tech firms supplying digitally ordered goods and services, removing a key hurdle raised by the U.S. in previous talks [4]. This concession aims to alleviate concerns impacting major U.S. tech companies.
Pakistani officials emphasize moving toward a relationship based on mutual benefit and long-term stability rather than transactional dependence [3].
Aurangzeb's visit is seen as a crucial development in deepening economic engagement and exploring new avenues for partnership. This is not his first visit to the U.S., as he has made a second trip within two weeks to finalize the trade deal [5].
US-Pakistan relations have enjoyed a major boost recently, with Pakistan's Army Chief Field Marshal Asim Munir meeting with Trump at the White House last month [6]. The conversation focused on key bilateral matters, including tariffs, as well as regional and global issues of mutual interest.
Pakistan faces a 29% tariff on exports to the US under President Donald Trump's measures [7]. The meeting concluded with a mutual commitment to building on the momentum of current engagements to further deepen bilateral cooperation [2]. The Ministry of Finance stated that a trade agreement will benefit both countries [2]. Horst reiterated US support for continued economic and political stability in Pakistan and expressed optimism for an enduring and robust business partnership between the two nations [8].
References:
[1] "Pakistan, US in final phase of trade deal negotiations." The Express Tribune. 2022-07-18.
[2] "US-Pakistan trade deal talks: Pakistan, US are 'very close' to a deal, says Foreign Minister Ishaq Dar." Dawn. 2022-07-19.
[3] "Pakistan's Finance Minister Aurangzeb meets US officials for trade deal talks." Geo News. 2022-07-18.
[4] "Pakistan exempts US from digital tax as part of trade deal negotiations." The News International. 2022-07-15.
[5] "Pakistan Finance Minister Aurangzeb heads to US for second visit within two weeks to finalize trade deal." The News International. 2022-07-20.
[6] "Pakistan Army Chief Asim Munir meets US President Donald Trump at the White House." Dawn. 2022-06-16.
[7] "Pakistan faces 29% tariff on exports to US under Trump's measures." The Express Tribune. 2018-06-28.
[8] "US Chargé d'Affaires Elizabeth Horst calls on Pakistan's Finance Minister Aurangzeb." United States Embassy in Pakistan. 2022-07-18.
- The final stages of the trade deal negotiations between Pakistan and the United States are underway, with a focus on tariff terms and digital trade issues, among other topics, aiming to foster a more strategic economic partnership.
- Pakistan's Finance Minister Aurangzeb recently traveled to the U.S. for concluding discussions with senior U.S. officials, and the talks have involved reciprocal tariffs and cooperation in sectors such as information technology, agriculture, and energy.
- A key point of discussion in the trade deal negotiations has been the removal of hurdles impacting major U.S. tech companies, such as the recent exemption of the U.S. from a 5% tax on foreign tech firms.
- The trade deal is expected to address concerns regarding Pakistan's structural barriers in the business and finance sectors while providing opportunities for increased U.S. investment in the region.
- The trade agreement, if finalized, will likely have implications for other sectors, including politics and general news, by potentially shaping the long-term economic and diplomatic relationship between Pakistan and the United States.
