In order to complete a long-awaited bilateral trade deal with Washington, Finance Minister Muhammad Aurangzeb has arrived in the US for a pivotal visit.
Significant progress is anticipated in the continuing negotiations, which are scheduled to conclude in August, according to sources in the Finance Ministry.
Minister Aurangzeb is in Washington for high-level talks with senior U.S. officials to discuss important issues, especially tariff and non-tariff barriers. According to reports, US officials have asked Pakistan to make significant cuts in certain areas in order to facilitate the accord.
A breakthrough is expected shortly, according to Finance Ministry insiders who spoke to Samaa TV, and Washington may release a formal statement in the next few days to acknowledge the work that has been done.
Finance Minister Aurangzeb spoke with the US Trade Representative and his US counterpart while in the US, reiterating Pakistan’s commitment to promoting robust, inclusive trade and investment ties between the two nations.
In the ongoing Pakistan-US Trade Dialogue, all sides expressed hope for making progress.
A Bloomberg article claims that the United States previously gave Pakistan a comprehensive list of requirements that needed to be fulfilled in order for the trade agreement to move forward. Among these were pledges to lower import taxes, address problems with market access, and increase bilateral commerce.
Bloomberg maintains that Pakistan is attempting to placate the US in order to receive respite from the mutually imposed tariffs, despite the negotiations moving more slowly than anticipated. According to reports, the finance minister is hopeful that a win-win arrangement can be reached.
“We are making encouraging progress, and the talks have become more productive after recent diplomatic engagements,” according to a source. According to Bloomberg, Pakistan had anticipated closing the agreement by the beginning of July.
After a protracted diplomatic standoff, Bloomberg also noted indications that ties between Washington and Islamabad are healing. The White House gave Pakistan’s army chief an exceptionally warm welcome last month, which is thought to be a sign of a thaw in relations between the two countries that aided in the advancement of trade negotiations. Even US President Donald Trump was later nominated for the Nobel Peace Prize by Pakistan.
Trade negotiations seem to have been revitalized by the recent diplomatic outreach. Pakistan wants to lower its $3 billion trade deficit with the US and is requesting a waiver of a high 29% tariff placed on a number of its products.
As a show of goodwill, Islamabad has also promised to boost imports of US soybeans and cotton. Pakistan’s top export market is still the United States, and it is the second-largest consumer of American cotton in South Asia, after China.
According to the Bloomberg article, Pakistan is now adopting a lenient approach toward the cryptocurrency sector and in April signed a memorandum of understanding (MoU) with World Liberty Financial, a company associated with the Trump family, potentially in an effort to draw in future investment.
