Pakistan and the United States have finalised a comprehensive trade agreement expected to reduce tariffs and expand cooperation across key sectors, including information technology, cryptocurrency, energy, and minerals. While specific tariff rates were not publicly disclosed, officials from both countries confirmed that the deal will enhance bilateral trade and investment flows. Finance Minister Muhammad Aurangzeb, who is currently in Washington for trade talks, confirmed the agreement during a meeting with senior US officials, including Secretary of Commerce Howard Lutnick and Trade Representative Ambassador Jamieson Greer.
In a statement shared by the Pakistani embassy in the US, the trade agreement was described as a step toward boosting market access, attracting investment, and fostering collaboration in sectors of shared interest. The embassy further noted that the deal would result in tariff reductions, especially benefiting Pakistani exports to the US. Among the sectors listed for future cooperation were IT, digital services, and cryptocurrency, indicating a shared interest in shaping future digital trade frameworks.
US President Donald Trump also acknowledged the deal in a post on Truth Social, highlighting a planned partnership to develop Pakistan’s oil reserves. While energy cooperation was emphasized, Pakistan’s Ministry of Finance underscored the broader scope of the agreement, which includes digital sectors and infrastructure development. Finance Minister Aurangzeb, in a message released by the ministry, described the outcome as a “win-win” for both countries. He said that the negotiations went beyond tariff adjustments and aimed to create a framework where trade and investment go hand in hand.
The agreement builds on Pakistan’s intent to increase foreign investment in its tech-driven economy. As part of the discussions, efforts were made to reduce non-tariff barriers and rebalance trade between the two nations. Aurangzeb credited the private sector for playing a crucial role in addressing the trade gap, stating that industry stakeholders had stepped forward to support national efforts in reaching a balanced and mutually beneficial agreement.
The inclusion of cryptocurrency in the trade framework marks a notable shift in Pakistan’s international economic engagements. While details remain limited, officials have indicated that Pakistan aims to explore partnerships around blockchain infrastructure, digital assets, and regulatory frameworks aligned with international practices. This opens potential opportunities for collaboration with US-based crypto innovators and investors.
Prime Minister Shehbaz Sharif expressed his gratitude to Trump for his support in finalising the agreement, calling it a landmark moment in strengthening US-Pakistan ties. Foreign Minister Ishaq Dar also confirmed the deal and emphasized the importance of cooperation in critical minerals and energy. The agreement comes after a suspension of a proposed 29 per cent tariff on Pakistani goods announced earlier this year, which had sparked intense negotiations to prevent adverse impacts on trade.
Meanwhile, former Senate chairman Mian Raza Rabbani urged the federal government to consult Parliament and provincial governments regarding aspects of the deal involving resource exploration and infrastructure development. He emphasized that such agreements must comply with Article 172 of the Constitution, ensuring equitable provincial participation in projects involving land and mineral assets.
