Pakistan, US hold new round of trade talks amid tariff tensions, eye wider cooperation
The meeting between Pakistan's Finance Minister Muhammad Aurangzeb, US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer followed a virtual discussion between Aurangzeb and Lutnick last month, during which both sides agreed to push negotiations forward 'at the earliest.'
The talks come after the US imposed a 29 percent 'reciprocal tariff' on Pakistani exports under President Donald Trump's trade measures announced in April, a move Islamabad said could undercut its fragile, export-led recovery.
'Finance Minister Aurangzeb emphasized that the US remains Pakistan's largest trading partner and underscored Pakistan's interest in expanding cooperation in both traditional and non-traditional sectors, including the IT & tech sector, minerals and agriculture, to foster a mutually beneficial relationship,' Pakistan's finance ministry said in a statement.
It added officials from both countries were pleased with the progress made so far in deepening trade and economic relations, which they described as a key pillar of the broader Pakistan-US partnership.
They reaffirmed their shared commitment to finding new ways to strengthen cooperation across all areas where both countries stand to benefit.
Nearly 90 percent of Pakistan's exports to the US are textiles, a sector that is most vulnerable to the duties.
The US is Pakistan's top export destination, with shipments totaling $5.44 billion in FY2024. From July 2024 to February 2025, exports rose 10 percent compared to the same period a year earlier.
Pakistan is also seeking to diversify its trade destinations and export base to mitigate risks related to its international trade.
'Both parties expressed optimism that ongoing trade talks would yield positive outcomes, benefiting the economies of both countries,' the ministry said in its statement.
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