Pakistan delegation to visit U.S. for trade negotiations: Aurangzeb

Pakistan’s Finance Minister Muhammad Aurangzeb announced a series of measures aimed at addressing the economic challenges posed by recent U.S. tariffs and fostering economic stability in Pakistan.

Speaking at a media briefing on Saturday, Aurangzeb informed a high-level delegation is set to visit the United States to discuss the implications of the tariffs and propose a new package for trade negotiations.

A steering committee and a working group have been established to analyze the impact of U.S. reciprocal tariffs on Pakistan's exports, study global trade dynamics, and recommend strategies for mitigating the effects of higher tariffs.

The working group will also explore opportunities for Pakistan to gain an early mover advantage in the evolving trade landscape.

Aurangzeb highlighted the country's economic progress, noting that stability has been achieved and its positive effects are becoming visible.

Remittances are expected to reach $36 billion this year, reflecting growing confidence in Pakistan's economy. International investors are also showing increased interest, and inflation has been reduced, benefiting the public and industries alike.

The Economic Coordination Committee will ensure that the effects of reduced inflation are felt across the country.

The finance minister shared updates on the successful conclusion of a staff-level agreement with the International Monetary Fund (IMF), emphasizing that the program is Pakistan's own and aims to achieve long-term goals.

He stressed the importance of consultation before signing the agreement and announced plans to implement climate financing initiatives under the IMF program.

Aurangzeb also detailed efforts to improve taxation, including the introduction of AI and modern digitization, enhanced audit capabilities, and simplified systems for the salaried class.

By June, taxes are expected to increase to 10.6% of the economy, with improvements in sales tax underway. The government has privatized 24 corporations, with bids for Pakistan International Airlines (PIA) to be invited this month.

In addition, Aurangzeb reported progress in the auto industry, which is now exporting vehicles, and savings of Rs. 1,000 billion achieved through improved debt maturity. Discussions with China regarding funding, rollovers, and Panda bonds are ongoing, further strengthening Pakistan's economic position.

Aurangzeb concluded by emphasizing the need for every sector in Pakistan to contribute to exports and the importance of achieving economic sustainability through balanced expenses and income.

The minister said Pakistan couldn’t overlook the importance of crypto economy adding that it was being traded across the world.

He informed that Pakistan is on the 7^th number in informal crypto economy.