ISLAMABAD – In a major diplomatic and economic development, Pakistan and the United States have signed a milestone trade agreement that not only slashes tariffs on key Pakistani exports but also lays the groundwork for deeper U.S. investment in energy, tech, and infrastructure.
The deal, finalized during Finance Minister Senator Muhammad Aurangzeb’s visit to Washington, marks a notable shift in U.S. attitude toward Pakistan. High-level talks involved U.S. Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, and Pakistan’s top trade and diplomatic officials.
Among the key concessions, Pakistan has agreed to roll back the 5% digital services tax—a move seen as pivotal in closing the deal. The agreement shields Pakistani exporters from looming U.S. tariffs of up to 29% and ensures uninterrupted access to American markets.
Former U.S. President Donald Trump personally endorsed the agreement, highlighting joint energy ventures and the strategic potential of Pakistan’s untapped oil reserves. Talks also hinted at future energy exports to regional players, including India.
The landmark accord comes at a critical time, just ahead of the U.S. imposing new tariffs on other nations from August 7, positioning Pakistan ahead of the curve through timely diplomacy.
The agreement is being hailed as a win-win—preserving trade access, attracting FDI, and strengthening Islamabad’s strategic economic relevance in a shifting global order.
This story has been reported by PakTribune. All rights reserved.