ISLAMABAD: Pakistan and the United States held a second round of negotiations on reciprocal tariffs on Tuesday, seeking to finalise a trade deal amid American concerns over Pakistan’s $3 billion trade surplus.

The negotiations follow Wash­ing­ton’s announcement of potential 29 per cent tariffs on Pakistani exports, which have been temporarily suspended for 90 days to allow space for talks.

According to an official statement issued by the Ministry of Finance, a virtual meeting took place between Finance Minister Muhammad Aura­ngzeb and US Commerce Secretary Howard Lutnick at 9pm PST.

Both sides resolved to carry forward their negotiations through a constructive engagement to finalise the trade deal at the earliest.

The discussions focused on meaningful engagement in trade, investment and deepening economic ties that are mutually beneficial to both sides, with the understanding that further technical-level, detailed discussions will be held in the coming days based on a mutually agreed-upon roadmap.

Speaking at an event in Islam­abad on Tuesday, Mr Aurangzeb said he had a “constructive and positive” discussion with Mr Lut­nick the previous night, describing it as an encouraging step towards strengthening the strategic partnership between the two countries.

“I had a very constructive and po­­sitive call with the US commerce secretary,” he told the gathering, ad­­ding that both countries were moving in the right direction to ensure Pakistan remained competitive.

He noted that discussions on US tariffs were part of efforts to deepen the strategic relationship. “The government will stay the course on reforms in taxation, energy and other sectors,” he said, adding that tariff reforms were underway to su­­pport a more competitive economy.

The minister stressed that both sides agreed to advance negotiations on reciprocal tariffs through constructive engagement, aiming to fin­alise the trade deal at the earliest.

Mr Aurangzeb and US Trade Representative Jamieson Greer initiated the formal dialogue on tariff deals with a telephonic conversation on May 30.

Pakistan also proposed a zero-tariff bilateral trade agreement to the United States last month, offering wide-ranging economic concessions, including incentives for American firms in Balochistan’s mining sector and increased imports of US cotton and edible oils.

Soon after assuming the office early this year, US President Do­nald Trump announced an inc­rease in trade tariffs on Pakistani products — later suspended temporarily — as part of his global trade rebalancing to the US’s favour. Prime Minister Shehbaz Sharif had immediately called for bilateral talks to address the matter.

Published in Dawn, June 18th, 2025