Pakistan, U.S. Agree to Finalize Trade Agreement Amid Progress on Tariff Discussions

Islamabad: Pakistan and the United States have made significant progress on tariff-related matters and agreed to finalize a bilateral trade agreement in the near future, according to the Ministry of Finance.
The development came during a virtual meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and U.S. Secretary of Commerce. Both sides discussed U.S. tariff issues and reaffirmed their commitment to strengthening bilateral trade, investment, and economic ties.
The Finance Ministry stated that further technical-level discussions between the two countries are expected soon. The conversation focused on enhancing cooperation in trade and investment, with both parties expressing optimism about a successful outcome. The dialogue will continue under a mutually agreed roadmap.
In a separate event, while addressing the National Workshop on Transitioning to Defined Contribution Pension Schemes in Islamabad, Finance Minister Aurangzeb also commented on rising geopolitical tensions in the Middle East. He assured that Pakistan is fully prepared to mitigate any potential economic fallout.
He emphasized that the government has held detailed discussions with all relevant stakeholders, ensured adequate reserves of essential commodities, and is closely monitoring the prices of all asset classes. “We are in a good position to respond if the situation escalates, though we hope it won’t,” he added.
Aurangzeb reaffirmed the government’s commitment to ongoing structural reforms in the energy sector, state-owned enterprises, and the tax system. He highlighted fundamental tariff reforms aimed at making the economy more competitive and promoting export-led growth.
The finance minister also revealed that pension payments have now exceeded PKR 1 trillion — surpassing the federal development budget — and stressed the urgency of reform in this area. The government is also striving to reduce the cost of debt servicing to ensure fiscal sustainability.