Latest news with #Muhammad Aurangzeb
Khaleej Times
31-07-2025
- Business
- Khaleej Times
Pakistan says it wins US tariff deal; Trump cites oil reserves pact
The United States and Pakistan hailed a trade deal on Thursday that Islamabad said would lead to lower tariffs and increased investment, but without specifying the level of tariff to be levied on Pakistani exports. "This deal marks the beginning of a new era of economic collaboration especially in energy, mines and minerals, IT, cryptocurrency and other sectors," the Pakistan finance ministry said in a statement following a final round of talks in Washington. Islamabad described the deal as a marker of a broader partnership with Washington, and Finance Minister Muhammad Aurangzeb, who led the final round of talks, said there was a larger economic and strategic agreement. "From our perspective, it was always going beyond the immediate trade imperative, and its whole purpose was, and is, that trade and investment have to go hand in hand," he said, in video-taped remarks. Pakistan had faced a potential tariff of 29%, which was later suspended - as with other nations - to allow trade talks up to an August 1 deadline. Islamabad was aiming at a tariff less than regional trade rivals such as Vietnam, which had a 20% tariff imposed by Trump, and India, which is threatened with a 25% tariff. Islamabad's trade surplus with Washington was around $3 billion in 2024, mainly due to textile exports. The United States is Pakistan's biggest market for textiles. The finance ministry said the agreement would lead to a "reduction of reciprocal tariffs, especially on Pakistani exports to the United States", but stopped short of revealing the figure. U.S. President Donald Trump meanwhile trumpeted a pact to help develop Pakistan's oil reserves. "We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves," Trump wrote on social media. "We are in the process of choosing the Oil Company that will lead this Partnership." OFFSHORE EXPLORATION However Pakistan has seen a series of unsuccessful offshore exploration attempts. Its proven recoverable conventional crude oil reserves of between 234 million and 353 million barrels by different estimates place it around 50th in the world. Shale oil extraction has not been developed in Pakistan, though a 2015 study by the U.S. Energy Information Administration estimated a technically recoverable shale oil resource of 9.1 billion barrels for Pakistan. Oil is Pakistan's biggest import item, $11.3 billion in the year ended June 30, 2025, accounting for nearly a fifth of its total import bill, central bank data showed. The agreement does have potentially wider diplomatic aspects. Washington has been concerned to wean Pakistan, a nuclear-armed country of 240 million people, away from its increasing dependence on China. Before the Trump administration, Islamabad's relationship with Washington had cooled in recent years, as the U.S. had drawn closer to Pakistan's traditional adversary India. There was also resentment from Washington over Afghanistan, especially under the administration of President Joe Biden, which oversaw a chaotic withdrawal from Afghanistan and the handing over of the country to the Taliban insurgency that Washington accused Islamabad of backing. Pakistan denies the charge. Under Trump, Washington has sought to renegotiate trade deals with many countries which he threatened with tariffs for trade relations he calls unfair, a characterization many economists dispute. In South Asia, Trump has repeatedly taken credit for a ceasefire agreed between India and Pakistan on May 10, after four days of conflict, saying he used the threat of restricting trade to get the two sides to halt hostilities. Islamabad embraced that version of events, praising him for intervening and then nominating him for the Nobel Peace Prize. India disputes Trump's claims that the ceasefire resulted from his involvement and trade threats. (Reporting by Kanishka Singh in Washington, Asif Shahzad in Islamabad and Ariba Shahid in Karachi; Writing by Saeed Shah; Editing by Clarence Fernandez and David Holmes)
Khaleej Times
29-07-2025
- Business
- Khaleej Times
Pakistan's finance minister heads to US to finalise trade deal
Pakistan's Finance Minister Muhammad Aurangzeb has left for his second visit to the United States in two weeks to finalise a trade deal with Washington, his office said late on Monday. The trip comes after Foreign Minister Ishaq Dar said on Friday that the U.S. and Pakistan were "very close" to a trade deal that could come within days, but comments from the U.S. after Dar met with Secretary of State Marco Rubio mentioned no timeline. "A final discussion on the Pakistan-U.S. trade dialogue will take place during the visit," Pakistan's Finance Ministry said in a statement, adding that a trade agreement will benefit both countries. Aurangzeb said he held "productive trade talks" in meetings with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Ambassador Jamieson Greer during his previous visit on July 18. The negotiations, focused on reciprocal tariffs, are part of a broader push to reset economic ties at a time of shifting geopolitical alignments and Islamabad's efforts to avoid steep U.S. duties on exports. Pakistan faces a 29% tariff on exports to the U.S. under President Donald Trump's measures to target countries with large trade surpluses with Washington. Pakistan's surplus was around $3 billion in 2024. To offset the imbalance and ease tariff pressures, Islamabad has offered to import more U.S. goods, including crude oil, and to open up investment opportunities through concessions for U.S. firms in Pakistan's mining sector. U.S.-Pakistan relations enjoyed a major boost when Trump hosted Pakistan's army chief Field Marshal Asim Munir at the White House last month for an unprecedented meeting. Pakistan aims to expand bilateral trade relations into both traditional and non-traditional sectors, the finance ministry said. There is significant potential for partnerships in key sectors such as information technology, minerals, and agriculture, it added.
Al Arabiya
29-07-2025
- Business
- Al Arabiya
Pakistan's finance minister heads to US to finalize trade deal
Pakistan's Finance Minister Muhammad Aurangzeb has left for his second visit to the United States in two weeks to finalize a trade deal with Washington, his office said late on Monday. The trip comes after Foreign Minister Ishaq Dar said on Friday that the US and Pakistan were 'very close' to a trade deal that could come within days, but comments from the US after Dar met with Secretary of State Marco Rubio mentioned no timeline. 'A final discussion on the Pakistan-US trade dialogue will take place during the visit,' Pakistan's Finance Ministry said in a statement, adding that a trade agreement will benefit both countries. Aurangzeb said he held 'productive trade talks' in meetings with US Commerce Secretary Howard Lutnick and US Trade Representative Ambassador Jamieson Greer during his previous visit on July 18. The negotiations, focused on reciprocal tariffs, are part of a broader push to reset economic ties at a time of shifting geopolitical alignments and Islamabad's efforts to avoid steep US duties on exports. Pakistan faces a 29 percent tariff on exports to the US under President Donald Trump's measures to target countries with large trade surpluses with Washington. Pakistan's surplus was around $3 billion in 2024. To offset the imbalance and ease tariff pressures, Islamabad has offered to import more US goods, including crude oil, and to open up investment opportunities through concessions for US firms in Pakistan's mining sector. US-Pakistan relations enjoyed a major boost when Trump hosted Pakistan's army chief Field Marshal Asim Munir at the White House last month for an unprecedented meeting. Pakistan aims to expand bilateral trade relations into both traditional and non-traditional sectors, the finance ministry said. There is significant potential for partnerships in key sectors such as information technology, minerals, and agriculture, it added.
Yahoo
21-07-2025
- Business
- Yahoo
Pakistan's Finance Minister in US to Push for Trade Deal
(Bloomberg) -- Pakistan's Finance Minister held meetings with US officials on Friday to negotiate Washington's demands as part of trade talks ahead of an August deadline. Why the Federal Reserve's Building Renovation Costs $2.5 Billion The Dutch Intersection Is Coming to Save Your Life Milan Corruption Probe Casts Shadow Over Property Boom Mumbai Facelift Is Inspired by 200-Year-Old New York Blueprint How San Jose's Mayor Is Working to Build an AI Capital A delegation led by Muhammad Aurangzeb held a 'productive meeting' with US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer in Washington, according to a statement by Pakistan's government, confirming a visit that was earlier reported by Bloomberg News. 'Both parties expressed optimism that ongoing trade talks would yield positive outcomes, benefiting the economies of both countries,' the statement said. Pakistan had earlier expected to wrap up a trade deal with the US by early July, but the talks are taking longer than expected. Relations between Islamabad and Washington are showing signs of improvement in recent months after a prolonged diplomatic chill. Last month, US President Donald Trump welcomed Pakistan's army chief, Asim Munir, for rare talks at the White House that was followed by Pakistan recommending Trump for a Nobel Peace Prize. Pakistan, which is warming up to the crypto industry, also signed a letter of intent with Trump family's World Liberty Financial in April to accelerate blockchain adoption in the country. Since Munir's visit, trade negotiations have made 'encouraging headway,' the finance ministry said in a statement earlier this week. Pakistan has a relatively small trade deficit of $3 billion with the US compared with many other nations. Pakistan is trying to appease the US to seek reprieve from the 29% reciprocal tariffs initially imposed by Trump. The South Asian nation, already the second-largest buyer of US cotton by value after China, has offered to boost imports of American cotton and soybeans. The US is the largest export market for Pakistan. (Updates with statement from the Government of Pakistan.) A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy Godzilla Conquered Japan. Now Its Owner Plots a Global Takeover ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Arab News
19-07-2025
- Business
- Arab News
Pakistan's finance chief eyes ‘step-change' US investment after Washington trade talks
KARACHI: Pakistan and the United States are exploring a shift in their economic engagement from a trade-focused relationship to one anchored in long-term investment, Finance Minister Muhammad Aurangzeb said in a video message after high-level talks in Washington on Friday. The meeting between Aurangzeb, US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer followed a virtual discussion 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. 'One thing we discussed was that we have to move beyond the immediate trade imperative for it to be brought into the next level and bring in a real step change,' Aurangzeb said after his interaction with US officials. 'So, the investment imperative will come forward, and areas have already been identified in terms of minerals and mining, in terms of AI [artificial intelligence], in terms of digital infrastructure [and] crypto,' he continued. 'We feel that this will be a real game changer, God willing, in terms of the relationship and the economic relationship between Pakistan and the United States.' The Pakistani finance chief said both sides were committed to resolving outstanding trade issues to move 'toward the finishing line' and begin investment-related discussions 'very quickly.' He also hinted at forthcoming announcements 'at the leadership level,' which he said would reflect all the hard work and efforts that have been put in both by Pakistan and on the US side. 'We begin with trade, and then it will very quickly be followed through with investment discussions between the two countries and real execution of the investment upside,' he said, calling the next phase a 'real win-win for Pakistan and the United States.' Pakistan's finance ministry has said the US remains its largest trading partner while emphasizing Islamabad's interest in expanding cooperation beyond textiles to other sectors. The US is Pakistan's top export destination, with shipments totaling $5.44 billion in the 2023-24 fiscal year. From July 2024 to February 2025, exports rose 10 percent from a year earlier, according to official data.
