Pakistan, US finalize tariff deal ahead of July 9 deadline

Pakistan and the United States have finalized a trade and tariff agreement just ahead of the July 9, 2025, deadline set by U.S. President Donald Trump.

An official from Pakistan’s Ministry of Commerce told Nukta that a Pakistani delegation, led by Secretary Commerce Jawad Paal, concluded negotiations with U.S. trade representatives in Washington on Friday.

According to the official, the United States has been pressing for greater access to the Pakistani market, particularly for its cotton, machinery, and crude oil exports. To exert pressure during the talks, Washington had earlier announced plans to impose a 29% tariff on key Pakistani exports, mainly textiles and agricultural products.

Currently, about 90% of U.S. goods already enter Pakistan duty-free under the existing Trade and Investment Framework Agreement (TIFA). However, the U.S. side has urged Pakistan to eliminate tariffs on the remaining American goods to further boost export volumes.

In response, Pakistan has pushed for a broader agreement—either a Preferential Trade Agreement (PTA) or a Free Trade Agreement (FTA) -- arguing that the current TIFA framework has delivered limited economic benefits to Islamabad.

While the deal has been finalized in principle, the formal signing and implementation will take time. Pakistani officials are set to begin internal consultations on tariff structures starting next week, the official added.

Bilateral trade between the two countries exceeded $7 billion in 2024, with Pakistan’s exports to the U.S. reaching over $5 billion, while American exports to Pakistan stood at $2.1 billion.

Prime Minister Shahbaz Sharif had earlier formed a high-level committee led by Finance Minister Senator Aurangzeb to oversee negotiations with Washington.

The Pakistani delegation, comprising Secretary Commerce Jawad Paal and representatives from trade bodies, arrived in Washington this week aiming to secure a long-term, reciprocal tariff agreement.