WASHINTON: With only a week left before the July 9 deadline, trade negotiations between Pakistan and the United States have entered their final stages, focusing on a crucial tariff agreement that could impact key Pakistani export sectors.
A delegation from Pakistan, led by Commerce Secretary Jawad Paal, arrived in Washington this week to finalise a long-term reciprocal tariff deal that would prevent the reimposition of a 29% tariff on Pakistani exports, primarily textiles and agricultural products.
The tariff relief had been temporarily paused earlier this year, and the outcome of these discussions will determine whether it is reinstated.
US Treasury Secretary Scott Bessent suggested that Washington might extend the deadline if substantial progress is made during the talks, potentially moving the cutoff to Labour Day.
However, Pakistani officials are aiming to conclude the deal this week to ensure certainty for exporters and investors.
The proposed agreement involves increased imports of US goods, including crude oil, and greater incentives for American investment in Pakistan’s mining, infrastructure, and energy sectors. Among the major projects under discussion is the Reko Diq copper-gold mine and related energy infrastructure. The deal is also expected to enhance engagement with the US Export-Import Bank.
Pakistani negotiators remain hopeful that an agreement will be reached before the July 9 deadline, securing continued access to the US market for Pakistani exports.
