- FinMin Aurangzeb, US representative hold virtual meeting.
- Finance minister hails steady progress by negotiating teams.
- FinMin stresses continued collaboration with US EXIM Bank.
Pakistan and the United States on Wednesday acknowledged major progress in negotiations over the proposed reciprocal trade framework, pledging to work towards an early conclusion of the agreement.
The development emerged during Finance Minister Muhammad Aurangzeb’s virtual meeting with US Trade Representative Ambassador Jamieson Greer to review progress on ongoing negotiations aimed at strengthening bilateral trade and economic cooperation, the finance ministry said in a statement.
Islamabad and Washington had reached a trade agreement in July last year ahead of President Donald Trump’s August 1 deadline that resulted in the imposition of higher tariffs against various countries on a reciprocal basis.
Following negotiations between Pakistani officials and the Office of the United States Trade Representative (USTR), Washington agreed to lower the proposed reciprocal tariff on Pakistani exports from 29% to 19%.
However, the arrangement was disrupted in February when the US Supreme Court ruled 6-3 that the White House had overstepped its constitutional authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA), effectively nullifying the policy.
The Trump administration later relied on Section 122 of the Trade Act of 1974 to introduce a temporary 10% global tariff for up to 150 days.
During today’s meeting, the finance minister welcomed “the steady progress made by the respective negotiating teams” and appreciated the constructive engagement over time.
FinMin Aurangzeb highlighted the importance of maintaining the momentum of negotiations in view of Pakistan’s economic priorities.
He emphasised that a strengthened trade and investment partnership with Washington would contribute to Pakistan’s export-led growth strategy, support economic resilience, and create greater commercial opportunities for businesses in both countries.
The finance minister also underscored the importance of continued collaboration with the US Export-Import Bank (EXIM) to facilitate bilateral trade and investment.
For his part, Ambassador Greer acknowledged Pakistan’s continued engagement throughout the negotiations and appreciated the progress made on labour and regulatory reforms, including measures relating to forced labour compliance.
He reaffirmed Washington’s commitment to sustaining the trajectory of bilateral trade discussions and expressed confidence that the remaining issues could be resolved through continued technical engagement.
The finance minister emphasised the importance of maintaining close coordination and accelerating technical-level discussions to build on the progress already achieved.
Pakistan and the US agreed to continue working closely to finalise the remaining elements of the framework and continue regular engagement to conclude the reciprocal trade framework soon.
Federal Secretary for Commerce Jawad Paul and senior team members of the Office of the USTR also attended the meeting.
