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Pakistan, US Set to Conclude Trade Talks Next Week Amid Push for Economic Reset
Pakistan & US to wrap up trade talks next week after Aurangzeb-Lutnick virtual meet. Strategic investment deal in play—tariff relief & mineral sector access top agenda.
ND
by News Desk
2025-06-25
Pakistan, US Set to Conclude Trade Talks Next Week Amid Push for Economic Reset

Pakistan and the United States are set to wrap up ongoing trade negotiations next week, as both countries aim to reshape their economic relationship amid shifting geopolitical dynamics and looming tariff challenges.

The announcement followed a virtual meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick, where both sides expressed “satisfaction” over the progress and agreed to finalize the discussions shortly.

“The discussion focused on meaningful engagement in trade, investment and deepening economic ties mutually beneficial to both sides,” said a statement from Pakistan’s finance ministry. “Technical-level trade-related discussions will be concluded next week.”

Tariffs and Trade Imbalance

One of Pakistan’s top priorities is addressing steep US tariffs, especially a 29% duty on its exports, introduced under former President Donald Trump to penalize countries with significant trade surpluses. Pakistan’s trade surplus with the US stood at approximately $3 billion in 2024.

To counterbalance the pressure and make the relationship more equitable, Islamabad has offered to increase imports from the US, particularly in crude oil and energy-related goods, while also proposing investment concessions for American companies in Pakistan’s mining and minerals sector.

Strategic Investment in Minerals

Earlier this week, both nations co-hosted a webinar focused on investment opportunities in Pakistan’s mining sector, including the massive $7 billion Reko Diq copper-gold project in Balochistan.

Senior officials and private investors from both countries discussed public-private partnerships, regulatory reforms, and financing mechanisms. The US Export-Import Bank is currently reviewing financing proposals worth $500 million to $1 billion in support of Reko Diq, which is seen as a cornerstone of future Pakistan–US economic collaboration.

Broader Economic Reset

Beyond trade, a long-term strategic and investment partnership is also under discussion, reflecting both sides’ desire to deepen economic ties beyond transactional trade flows.

The developments come at a time when Pakistan is seeking to diversify its economic alliances and attract foreign investment to support growth and reduce its debt burden, while the US is looking to strengthen partnerships across South Asia amid global power shifts.

Further details are expected to emerge after the final round of trade talks concludes next week.

 
Tagged:

PakistanEconomy

RekoDiq

TradeTalks

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