Finance Minister Muhammad Aurangzeb has departed for the United States in a last-ditch effort to finalize a trade deal before the August 1 deadline set by the Trump administration. This marks his second visit to Washington in two weeks, signaling the urgency of negotiations. The move comes after Foreign Minister Ishaq Dar hinted that both nations were “very close” to an agreement, though US officials have remained silent on a timeline.
The US had warned of imposing higher tariffs on Pakistani exports unless a trade deal is reached. Currently, Pakistan faces a steep 29% tariff under measures targeting countries with large trade surpluses with the US—Pakistan’s surplus stood at $3 billion in 2024. To ease tensions, Islamabad has offered to increase imports of US crude oil and provide investment incentives in sectors like mining and IT.
A key challenge for Pakistan is ensuring any tax exemptions granted to US tech giants do not trigger demands for similar treatment from Chinese firms. The negotiations also aim to reset economic ties amid shifting global alliances. The recent White House meeting between former President Trump and Pakistan’s Army Chief General Asim Munir has added momentum to bilateral relations.
The Finance Ministry highlighted opportunities in IT, agriculture, and mineral sectors, suggesting the deal could pave the way for long-term collaboration. With formal announcements expected soon, all eyes are on whether Pakistan can secure favorable terms and avoid punitive tariffs, boosting its export economy in the process.