WASHINGTON: A Pakistani delegation arrived in Washington on Monday to finalise a trade agreement as the country looks to recalibrate economic ties with the US and ease tensions stemming from high import tariffs imposed by President Donald Trump.

The delegation, led by Commerce Secretary Jawad Paal, is scheduled to hold talks with US Trade Representative Jamieson Greer and senior officials from other departments.

Talks between Pakistan and the United States, which have been ongoing for over a month, are expected to conclude this week, the Finance Ministry stated on Wednesday following a meeting between Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick.

The ongoing discussions, centred on reciprocal tariffs are part of a broader effort to “reset economic ties at a time of shifting geopolitical alignments,” according to Pakistani officials.

The finance ministry also noted that “a longer-term strategic and investment partnership is also under discussion.”

Pakistan currently faces a 29 per cent tariff on its exports to the US. In 2024, Pakistan’s trade surplus with the United States was around $3 billion.

To ease tariff pressures and address the trade imbalance, Islamabad has offered to increase imports of American goods, including crude oil and expand investment opportunities for US firms, particularly in its mining sector.

“Both sides showed satisfaction on the ongoing negotiations and resolved to conclude the trade negotiations next week,” the ministry said.

Last week, the two governments co-hosted a webinar to promote investment in Pakistan’s mineral sector, highlighting the $7 billion Reko Diq copper-gold project in Balochistan.

Senior officials and US investors discussed public-private partnerships and regulatory reforms aimed at attracting foreign capital.

The US Export-Import Bank is currently reviewing financing proposals worth between $500 million and $1bn for the Reko Diq project.

In an interview with Fox Business, US Treasury Secretary Scott Bessent said the administration is negotiating trade deals with 18 “important trading partners” and expects several of them to be finalised in the coming weeks.

“If we can ink 10 or 12 of the important 18 … then I think we could have trade wrapped up by Labour Day,” Mr Bessent said, indicating a more flexible timeline than the previously set July 9 deadline.

President Trump has already claimed he used trade as a leverage to stop hostilities between Pakistan and India in May.

US officials have said finalising trade agreements with both India and Pakistan could provide a much-needed stabilising influence and offer a path toward broader economic cooperation.

Published in Dawn, July 1st, 2025