ISLAMABAD: Pakistan and the United States have agreed to advance talks through constructive engagement to conclude a trade agreement at the earliest, according to a statement issued by Pakistan’s Ministry of Finance on Tuesday.
The Finance Ministry said that the consensus was reached during a virtual meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick.
The statement added that both sides agreed to advance negotiations on reciprocal tariffs through constructive engagement, aiming to finalise the trade deal at the earliest.
The discussions focused on meaningful engagement in trade, investment, and strengthening mutually beneficial economic ties.
Both sides also agreed that further technical-level discussions would take place in the coming days, following a mutually agreed-upon roadmap.
The talks are taking place amid tensions following the US announcement of reciprocal tariffs in April, citing Pakistan’s $3 billion trade surplus with the United States.
The proposed tariffs—potentially as high as 29% on Pakistani exports—were temporarily suspended for 90 days to provide an opportunity for negotiations.
Earlier, the Finance Minister, speaking at an event in Islamabad, said he had a constructive and positive conversation with the US Commerce Secretary last night. He said that both countries are moving in the right direction.
The finance minister said the government will stay the course of reforms in taxation, energy, and other sectors. He said we have also carried out tariff reforms to move towards a competitive economy.
The Finance Minister said the government will stay the course of reforms in taxation, energy, and other sectors. He said we have also carried out tariff reforms to move towards a competitive economy.
As regards pension reforms, the Finance Minister said the Defined Contribution Pension Scheme is a win-win for both the government and the employees.
He said the government has increased the pension of retired employees by seven percent in line with inflationary trends.
Aurangzeb said we have also proposed a five percent tax on pensions above ten million rupees while protecting low and middle-income pensioners.
