FM Aurangzeb pushes to finalise US trade deal: Bloomberg

ISLAMABAD: Finance Minister Muhammad Aurangzeb is making proactive efforts to secure a trade agreement with the United States ahead of the August deadline, Bloomberg reported on Saturday.

Aurangzeb is engaged in negotiations in Washington, seeking discussions on several American demands laid out in a detailed list previously provided to a Pakistani delegation, according to the report.

These demands include fulfilling preconditions for a trade deal, and reducing both tariff and non-tariff trade barriers.

The Ministry of Finance had last week said that the trade negotiations have made encouraging progress. Pakistan is particularly keen to secure relief from the 29% tariff currently imposed on its exports.

Islamabad had initially expected to conclude the deal by early July, but the pace of talks has been slower than anticipated.

Pakistan also offered to increase imports of American cotton and soybeans, while emphasising that the US remains its largest export market. Notably, Pakistan is the second-largest buyer of US cotton in South Asia after China.

The improvement in Islamabad-Washington ties follows a prolonged diplomatic chill. The report noted a visible thaw, marked by US President Donald Trump's warm reception of Field Marshal Asim Munir at the White House last month.

Following that, Pakistan recommended Trump for the Nobel Peace Prize — as he had played a key role in the resolution of the Pakistan-India war.

The report further revealed that Pakistan signed a memorandum of understanding with the Trump family’s World Liberty Financial in April, and is currently adopting a more accommodating stance towards the crypto industry.

Pakistan’s current trade deficit with the US stands at around $3 billion, and the country hopes to reduce this figure through continued talks and expanded cooperation.