Pakistan, US to further adjust trade, investment deals

• Washington seeks incentives in mining, minerals sectors.
• Pakistan expects export boost under upcoming trade pact.
• Moody’s upgrade signals recovery, says FinMin Aurangzeb.
  

Pakistan and the United States are edging closer to fine-tuning a wide-ranging trade and investment agreement, with Islamabad expecting a significant boost in exports over the coming months.

However, in return, Washington wants reciprocal incentives on mines and minerals, and different options are being explored to move ahead, top official sources told The News on Friday.

When quizzed, Minister for Finance Muhammad Aurangzeb told The News that they were expecting further fine-tuning of the trade and investment deal in the coming weeks, as there were expectations of an uptick in exports from Pakistan.

A top official said that more than 90% modalities with the US had been firmed up, but certain things were still under discussion. For instance, Pakistan is going to incentivise the US investment in mines and minerals-related projects, but it is under discussion how the country will give incentives for the latter, they added.

Pakistan will procure POL products from the US, causing a price increase for the domestic consumers owing to the increased logistics costs. However, officials said there would not be much impact, as in the overall imports of POL products, the imports from the US would be standing at around 10%.

Pakistan’s two key ministers, Minister for Commerce Jam Kamal and Special Assistant to the PM on Industries Haroon Akhtar Khan, met the exporters last week to get their feedback on the US tariffs.

According to a statement issued on Friday, US Chargé d’Affaires Natalie Baker called on Aurangzeb at the Finance Division. Matters of mutual interest, including avenues for enhancing bilateral trade, commerce and US investment in Pakistan, came under discussion.

The finance minister said Pakistan’s economy had “turned the corner,” noting that the recent upgrade by Moody’s — aligning all three major international rating agencies in their assessment of Pakistan’s economic performance — was clear evidence that the hard and necessary reforms undertaken by the government were yielding positive results. 

Aurangzeb thanked the US for its continued economic and development support to Pakistan and recalled his recent visit to Washington, DC, where he had constructive engagements with his counterpart Howard Lutnick and United States Trade Representative Ambassador Jamieson Greer to finalise the trade agreement.

The minister emphasised that the agreement would usher in a new era of economic collaboration, particularly in energy, mines and minerals, IT, cryptocurrency, and other sectors, while expanding market access, attracting investment and fostering cooperation in areas of mutual interest.

He expressed the hope that the deal would lead to increased US investment in Pakistan’s infrastructure, development projects and digital and mining sectors, which were ready for tangible action and progress.

Baker said the trade agreement presented a significant opportunity for both countries to expand their bilateral trade. 

She noted that the US companies were taking keen interest in investment and entrepreneurial opportunities in Pakistan, particularly in the supply chain, production, project management, energy, critical minerals, mining and oil exploration.

Both sides reaffirmed their commitment to working closely together to advance these initiatives, ensuring mutually beneficial outcomes and further strengthening bilateral trade and economic cooperation.