ISLAMABAD: Pakistan and the US are deepening cooperation in energy, mining and technology sectors, with Islamabad planning an investor conference in Washington to draw American investment, Finance Minister Muhammad Aurangzeb said.
Pakistan and the US have moved to rebuild military and economic ties after years of strain, with the US announcing a $500 million investment by U.S. Strategic Metals and Pakistan promoting US interest in its oil and gas sector.
Pakistan’s economy has stabilized with IMF loans, and the country has made progress on program targets, with S&P Global, Fitch and Moody’s upgrading Pakistan’s credit ratings and investor appetite for its dollar bonds and equities strengthening.
Pakistan and the US are deepening cooperation in energy, mining and technology sectors, with Islamabad planning an investor conference in Washington later this month to draw American investment, Finance Minister Muhammad Aurangzeb said.
“The sectors are very clear where we seek their investment and where we see a clear investment appetite,” Aurangzeb said in an interview with Bloomberg News in Islamabad. “With respect to the US, as of right now, you’ve just kick-started that process.”
Pakistan and the US have moved to rebuild military and economic ties after years of strain. Last week, Prime Minister Shehbaz Sharif and military chief Asim Munir met President Donald Trump at the White House, where Trump praised each of them as a “very great guy.”.
Trump praised Pakistan after officials credited him with ending a four-day conflict with India in May — a claim India denies — and Sharif’s government said it nominated him for a Nobel Peace Prize.
Economic links have also grown. The US announced a $500 million investment by U.S. Strategic Metals, while Pakistan promoted US interest in its oil and gas sector after Trump highlighted “massive oil reserves,” despite falling production.
Pakistan’s security relations with the US have wavered from periods of close cooperation to chilly ties. The US over multiple administrations, meanwhile, has cultivated India as a regional partner and a bulwark against a more assertive China. US ties with India have been tested lately with Trump criticizing India for buying Russian oil and ultimately imposing a punitive 50% tariff in August.
Aurangzeb said progress followed a new trade deal with the US setting a 19% tariff, lower than regional peers and well below the tariff imposed on India. He said the rate boosted Pakistan’s export competitiveness and helped it emerge from crisis.
“The first thing was to get the trade equation out of the way, which it is now,” Aurangzeb said. “From my perspective, every single industry in Pakistan has to have an export component, because it’s the only way we’re going to get out of this boom-and-bust cycle.”
Pakistan pulled back from default in 2023 with IMF loans, stabilizing its economy. An IMF mission is now reviewing progress under the $7 billion program.
