FinMin Aurangzeb, Trump’s trade envoy kick-start tariffs negotiations

Pakistan’s formal negotiations on US reciprocal tariffs kick-started between Finance Minister Muhammad Aurangzeb, and Ambassador Jamieson Greer, US Trade Representative, through a conference call on Friday, a finance minister spokesperson said.

Pakistan faces a potential 29% tariff on exports to the United States due to a $3 billion trade surplus with the world's biggest economy, under tariffs announced by Washington last month on countries around the world. Tariffs were subsequently suspended for 90 days so negotiations could take place.

Earlier this month, Pakistan had offered a zero-tariff bilateral trade agreement to the United States, government sources told Geo News.

"Pakistan is offering to enter into a bilateral agreement with zero tariffs on selected tariff lines, with mutual interests, to expand bilateral trade across multiple sectors," said a high-level source when asked about the new policy offered to the US.

In a statement today, the advisor, Khurram Schehzad, said: “Both sides exchanged their viewpoint through a constructive engagement with the understanding that technical level detailed discussions would follow in the coming weeks.

The two sides expressed confidence in advancing the negotiations for a successful conclusion at the earliest, he added in a X post.

Commerce Minister Jam Kamal told Reuters earlier this month that Pakistan plans to offer concessions to US companies to invest in its mining sector as part of negotiations with Washington over tariffs.

He said that Islamabad will offer US businesses opportunities to invest in mining projects primarily in Pakistan's Balochistan province through joint ventures with local companies, providing concessions like lease grants.

The minister added that this would be in addition to efforts to increase imports from the United States, particularly cotton and edible oils, which are currently in short supply in Pakistan.

Pakistan would put its offer of concessions for mining investment to US officials during talks over tariffs in the coming weeks.

"There is untapped potential for US companies in Pakistan, from mining machinery to hydrocarbon ventures," he said in an interview with Reuters on May 23.

US President Donald Trump has said that he’s working on "big deals" with both Pakistan and India, following Washington’s key role in brokering a ceasefire between Pakistan and India earlier this month following the worst fighting in decades between the nuclear-armed neighbours.

"The previous US administration focused more on India, but Pakistan is now being recognised as a serious trade partner," Kamal said.

Pakistan will gradually lower tariffs in its upcoming federal budget, Kamal said.

He said that the United States has not specified trade barriers or priority sectors.