Pakistan, US to conclude tariff talks next week: finance ministry

• Both sides agree to pursue broader strategic partnership.
• Pakistan offers to increase imports from US.
• Islamabad, Washington began formal trade talks on May 30.

Pakistan and the United States have agreed to finalise their ongoing trade negotiations on reciprocal tariffs by next week, according to a statement released by the Ministry of Finance on Wednesday.

The development comes following a virtual meeting between Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick.

Pakistan faces a potential 29% tariff on exports to the United States due to a $3 billion trade surplus with the world's biggest economy, under tariffs announced by Washington last month on countries around the world. Tariffs were subsequently suspended for 90 days so negotiations could take place.

Islamabad last month sent a high-level delegation to the US for negotiations aimed at enhancing bilateral trade relations and addressing concerns related to newly imposed US tariffs on Pakistani imports.

Earlier in May, Pakistan proposed a zero-tariff bilateral trade agreement to the United States, offering wide-ranging economic concessions.

Additionally, Pakistan has offered to increase imports from the United States, particularly cotton and edible oils, which are in short domestic supply.

“The discussion focused on meaningful engagement in trade, investment and deepening economic ties mutually beneficial to both sides,” the finance ministry said in a statement on Wednesday, adding that technical-level trade-related discussions will conclude next week.

Both sides also agreed to pursue a broader strategic and investment-based partnership, with the ministry stating this framework would be developed in due course.

Earlier this week, according to Reuters, the two countries co-hosted a webinar promoting investment in Pakistan’s mineral sector, including the $7 billion Reko Diq copper-gold project.

Senior officials from both governments and US investors discussed public-private partnerships and regulatory reforms.

Trump, who brokered a ceasefire between Pakistan and India, has earlier said trade helped avert a deeper conflict between both countries.

— With additional input from Reuters.