ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb has made anurgent visit to Washington, where he engaged in high-level tradediscussions with senior members of the Trump administration. The visit,which was not officially announced beforehand, marks a significant move inIslamabad’s efforts to secure tariff relief and boost bilateral trade withthe United States. A senior minister from the Shehbaz Sharif-led governmentconfirmed on Friday night that negotiations are underway and expressed hopethat the talks would reach a successful conclusion soon.
Aurangzeb met with U.S. Secretary of Commerce Howard Lutnick and UnitedStates Trade Representative Ambassador Jamieson Greer during his visit onFriday. The discussions focused on addressing tariff-related issues andenhancing overall trade cooperation. This meeting follows the recent visitto the United States by Pakistan’s Chief of Army Staff, Field Marshal AsimMunir, which reportedly laid the groundwork for renewed diplomatic andeconomic engagements between the two nations.
According to sources familiar with the matter, the two countries areevaluating the possibility of entering either a Preferential TradeAgreement (PTA) or a Bilateral Trade Treaty (BTT). Such agreements wouldaim to balance the trade deficit between the two nations while offeringmutual economic benefits. Washington is particularly interested in BTTswith countries where it faces significant trade deficits, and Pakistancurrently holds an annual trade surplus of nearly $3 billion with the U.S.
One of the central points of discussion involves a potential reduction intariffs on Pakistani textile exports, which currently face around a 29%duty in the U.S. market. In return, Islamabad may offer tariff concessionson American agricultural exports, especially cotton and soybeans. Bothsides are working to ensure that any agreement complies with the rules andstandards set by the World Trade Organization (WTO), allowing for legallysound incentives that support trade expansion.
The talks also reflect broader economic diplomacy as Pakistan seeks todeepen engagement with international partners following its recent progressin macroeconomic stabilization. Minister Aurangzeb has led a series ofinternational engagements since April 2025, including meetings with theIMF, World Bank, global rating agencies, and U.S. companies. He emphasizedPakistan’s ongoing economic reforms, including tax base expansion, energysector improvements, digital transformation of the Federal Board of Revenue(FBR), and privatization of state-owned enterprises.
As part of the preparations for these trade negotiations, Pakistan hadalready formed a dedicated steering committee chaired by the financeminister and a technical working group led by the commerce secretary. Theirtask has been to develop a comprehensive policy framework to support theupcoming trade deal and ensure Pakistan maximizes its export potentialwhile opening new opportunities for U.S. investors in sectors likeminerals, agriculture, and IT.
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Pakistan’s proposal includes increasing imports of Americangoods—particularly oil, cotton, and soybeans—while offering joint venturesand incentives for U.S. companies to invest in its mining and IT sectors.These efforts are aimed at both resolving trade imbalances and attractingmuch-needed foreign direct investment.
Diplomatic observers note that this evolving cooperation between Islamabadand Washington comes amid a significant geopolitical realignment in SouthAsia. The warm reception of Pakistan’s top military leadership at the WhiteHouse, followed by back-to-back ministerial engagements, has raisedconcerns in New Delhi about a possible strategic shift in U.S. policy.
Additionally, U.S. officials, including Secretary of State Marco Rubio,have shown interest in expanding cooperation beyond trade, with aparticular focus on minerals, immigration control, and law enforcement.Pakistan, on its part, has sought to present itself as a stable andreform-oriented partner ready for a deeper strategic and economic alliancewith the United States.
Currently, both countries are optimistic about concluding the technicalphase of trade talks within a week. If successful, the deal could offerPakistan much-needed tariff relief, enhanced access to the American market,and fresh investment, while the U.S. secures a foothold in Pakistan’sexpanding consumer base and untapped resource sectors.