Washington, July 31 (Alliance News): Hours after Pakistan and the United States finalized a landmark trade agreement covering tariff reductions and joint oil reserve development, Prime Minister Shehbaz Sharif thanked US President Donald Trump for his leadership in concluding what he called a “historic” pact between the two nations.
The breakthrough agreement, reached late last night in Washington after prolonged negotiations, aims to expand bilateral trade, enhance market access, and open avenues for cooperation in energy and key economic sectors.
“We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,” President Trump announced on social media.
Calling it a milestone in US-Pakistan ties, Prime Minister Shehbaz Sharif took to X (formerly Twitter), stating, “This landmark deal will enhance our growing cooperation to expand the frontiers of our enduring partnership in days to come.”
‘Major Diplomatic Success’
Minister of State for Finance Bilal Azhar Kayani termed the agreement a “major diplomatic success” for Pakistan and said it reflects the strength of sustained diplomatic efforts in recent weeks. In an interview with Geo News, Kayani noted that the deal includes significant tariff reductions on Pakistani exports to the United States — a move anticipated to boost trade and economic confidence.
‘Broader Partnership Taking Shape’
Finance Minister Senator Muhammad Aurangzeb described the agreement as a step towards a broader strategic and economic alliance. Following his meeting in Washington with US Secretary of Commerce Howard Lutting and US Trade Representative Jameson Greer, Aurangzeb told Geo News that the deal paves the way for synchronized growth in trade and investment.
“This deal reflects a broader economic and strategic partnership that’s now taking shape,” Aurangzeb said, noting the vital role played by the private sector during negotiations. He also emphasized that addressing the trade imbalance remained a key goal.
Pakistan’s Trade Growth with US
According to the US Trade Representative’s Office, total goods trade between the United States and Pakistan reached approximately $7.3 billion in 2024, up from $6.9 billion in 2023. The US goods trade deficit with Pakistan stood at $3 billion in 2024, marking a 5.2% increase over the previous year.
‘It’s a Done Deal,’ Says DPM Dar
Deputy Prime Minister Ishaq Dar also shared the news in a late-night post, stating, “Pakistan concludes deal with USA, AlhamdoLilah.” The announcement marked what officials called a pivotal moment in Pakistan’s economic diplomacy.
According to a Ministry of Finance statement, the agreement was finalized during a high-level meeting attended by Finance Minister Aurangzeb, US Commerce and Trade officials, Pakistan’s Ambassador to the US Rizwan Saeed Sheikh, and Commerce Secretary Jawad Paul.
Scope of the Agreement
The deal aims to deepen cooperation in energy, minerals, information technology, cryptocurrency, and infrastructure development. Key features include:
Reduction in US tariffs on Pakistani exports
Improved market access for Pakistani goods
Support for investment in energy and natural resources
Expanded US involvement in infrastructure and technology sectors in Pakistan
Officials anticipate that the agreement will attract more US investment into Pakistan and create new growth opportunities for bilateral economic engagement.
