Pakistan’s Finance Minister in High-Stakes U.S. Talks to Ease Tariff Tensions

Pakistan’s Finance Minister Muhammad Aurangzeb held critical trade discussions with U.S. officials in Washington on Friday, aiming to secure relief from a 29% tariff imposed on Pakistani exports under President Donald Trump’s trade policies targeting countries with significant trade surpluses. The meetings, involving U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, were described as “productive” by Pakistan’s finance ministry, with both sides expressing optimism about strengthening economic ties.

Aurangzeb emphasized the U.S. as Pakistan’s largest trading partner, with exports reaching $5.44 billion in FY2024, primarily in textiles, which face the brunt of the tariffs. Pakistan, which recorded a $3 billion trade surplus with the U.S. in 2024, is pushing to expand cooperation in IT, minerals, and agriculture while offering to increase imports of U.S. goods like cotton and soybeans to balance trade. 

The talks follow a breakthrough earlier this month, where an understanding on a tariff deal was reportedly reached, though a formal announcement awaits the U.S. concluding similar negotiations with other trade partners. Pakistan has been actively pursuing relief from the tariffs, which could disrupt $500–$700 million in exports, particularly textiles, threatening its fragile economic recovery.  

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Recent warming of U.S.-Pakistan relations, highlighted by Trump’s hosting of Pakistan’s Army Chief Field Marshal Asim Munir last month, has bolstered these negotiations. Pakistan’s offer to open its mining sector to U.S. investment and its willingness to reduce tariff and non-tariff barriers signal a broader strategy to deepen economic ties. Both nations are optimistic about finalizing a deal by August, fostering mutual economic benefits.

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