Pakistan, U.S. begin tariff talks amid push to boost trade

Pakistan and the United States on Friday began formal discussions on bilateral tariffs, aiming to enhance trade relations between the two nations.

The virtual talks were led by Pakistan’s Finance Minister Muhammad Aurangzeb and U.S. Trade Representative Ambassador Jamieson Greer. Both sides engaged in what officials described as "constructive" discussions, focusing on areas of mutual interest, particularly tariffs.

They agreed to hold detailed technical-level negotiations in the coming weeks to explore ways to expand bilateral trade.

Bilateral trade between the two countries reached $7.3 billion in 2024. U.S. goods exports to Pakistan totaled $2.1 billion, up 4.4% from 2023, while imports from Pakistan rose 4.9% to $5.1 billion. The U.S. trade deficit with Pakistan widened to $3 billion, a 5.2% increase from the previous year.

A Commerce Ministry official, speaking on condition of anonymity, said the U.S. seeks to reduce its trade deficit with Pakistan by pushing for lower duties on remaining goods after already securing zero-duty access for 80-90% of products. Washington wants increased exports of cotton, soybeans and machinery to Pakistan.

The two nations signed a Trade and Investment Framework Agreement (TIFA) in 2003 to address trade and investment issues. However, the official said Pakistan cannot offer unilateral concessions to the U.S. without similar demands from other trading partners like the European Union and China.

Islamabad is reportedly seeking a free trade agreement with the U.S. and aims to negotiate favorable terms with the Trump administration.

A U.S. trade delegation visited Pakistan earlier this month but cut short its trip following regional tensions.

Both sides reaffirmed their commitment to conclude negotiations at the earliest.