In a major breakthrough, Pakistan and the United States have finalised a landmark trade agreement aimed at expanding bilateral trade, enhancing market access, encouraging foreign investment, and deepening economic cooperation across key sectors including energy, minerals, IT, and cryptocurrency.The agreement was concluded during a high-level meeting in Washington, DC, where Federal Finance Minister Senator Muhammad Aurangzeb met with US Secretary of Commerce Howard Lutnick and US Trade Representative Ambassador Jamieson Greer.

Also present were Pakistan’s Secretary of Commerce Jawad Paul and Ambassador Rizwan Saeed Sheikh.According to a press release from Pakistan’s Ministry of Finance, the deal includes reciprocal tariff reductions—particularly benefiting Pakistani exports—and lays the foundation for joint exploration of natural resources, especially oil reserves.

In a landmark development, Pakistan and the United States finalized a trade agreement today aimed at boosting bilateral trade, expanding market access, attracting investment, and fostering cooperation in areas of mutual interest. US President Donald Trump confirmed the agreement via a post on Truth Social, stating that both countries will collaborate in selecting an oil company to lead the exploration.

He added, "Maybe Pakistan will one day sell oil to India."The deal is expected to stimulate US investment in Pakistan’s infrastructure and development projects while giving Pakistani goods greater access to American markets. It also aligns with Pakistan’s broader objective of diversifying economic ties with US states individually.

Finance Minister Aurangzeb emphasized that the agreement addresses long-standing trade issues such as non-tariff barriers and imbalances.In a video message, he highlighted the private sector’s role in shaping the agreement and expressed confidence in its long-term benefits. “Trade and investment must go hand in hand. This deal reflects a broader strategic and economic partnership,” he said.

As part of its commitment, Pakistan also rolled back a 5% tax on foreign digital services that had been introduced a month earlier—a move seen as a goodwill gesture toward the US While this exemption benefits all foreign companies, it was reportedly granted in response to US concerns.

Credit: Independent News Pakistan (INP)