Pakistan, US to further fine-tune trade, investment deals

ISLAMABAD: Pakistan and the US will further fine-tune their trade and investment deals, with the Pakistani goods’ exports expected to fetch millions of dollars in the coming months.

However, in return, Washington wants reciprocal incentives on mines and minerals, and different options are being explored to move ahead, top official sources confided to this reporter on Friday.

When quizzed, Minister for Finance Muhammad Aurangzeb told this reporter that they were expecting further fine-tuning of the trade and investment deal in the coming weeks, as there were expectations of an uptick in exports from Pakistan.

A top official told this reporter that more than 90 percent modalities with the US had been firmed up, but certain things were still under discussion. For instance, Pakistan is going to incentivize the US investment in mines and minerals-related projects but it is under discussion how the country will give incentives for the latter, they added.

Pakistan will procure POL products from the US, causing a price increase for the domestic consumers owing to the increased logistics costs. However, officials said there would not be much impact, as in the overall imports of POL products, the imports from the US would be standing at around 10 percent.

Pakistan’s two key ministers, Minister for Commerce Jam Kamal and Special Assistant to the PM on Industries Haroon Akhtar Khan, met with the exporters last week to get their feedback on the US tariffs.

According to an official statement issued on Friday, US chargé d’affaires Ms. Natalie Baker called on Muhammad Aurangzeb at the Finance Division. Matters of mutual interest, including avenues for enhancing bilateral trade, commerce and US investment in Pakistan, came under discussion.

The finance minister said Pakistan’s economy had “turned the corner,” noting that the recent upgrade by Moody’s — aligning all three major international rating agencies in their assessment of Pakistan’s economic performance — was clear evidence that the hard and necessary reforms undertaken by the government were yielding positive results. Aurangzeb thanked the US for its continued economic and development support to Pakistan and recalled his recent visit to Washington, D.C., where he had constructive engagements with his counterpart Howard Lutnick and United States Trade Representative Ambassador Jamieson Greer to finalize the trade agreement. The minister emphasized that the agreement would usher in a new era of economic collaboration, particularly in energy, mines and minerals, IT, cryptocurrency, and other sectors, while expanding market access, attracting investment and fostering cooperation in areas of mutual interest. He expressed the hope that the deal would lead to increased US investment in Pakistan’s infrastructure, development projects and digital and mining sectors, which were ready for tangible action and progress. Ms Baker said the trade agreement presented a significant opportunity for both countries to expand their bilateral trade. She noted that the US companies were taking keen interest in investment and entrepreneurial opportunities in Pakistan, particularly in the supply chain, production, project management, energy, critical minerals, mining and oil exploration. Both sides reaffirmed their commitment to working closely together to advance these initiatives, ensuring mutually beneficial outcomes and further strengthening bilateral trade and economic cooperation.

APP adds: Meanwhile, Interior Minister Mohsin Naqvi Friday met with US Coordinator for Counterterrorism Gregory LoGerfo at the interior ministry here.

Minister of State for Interior Talal Chaudhry, Acting US Ambassador Natalie Baker and secretary interior were also present.

Gregory LoGerfo congratulated Naqvi and the people of Pakistan on the country’s 79th Independence Day. Both sides agreed to further enhance bilateral relations, particularly in the areas of counterterrorism, border security and counter-narcotics. They also agreed to improve the effectiveness of information exchange in these fields.

Naqvi said the Pak-US relations had significantly improved since President Donald Trump’s administration came into office. He praised President Trump’s sincere efforts for global peace and highlighted that transparency, mutual trust and cooperation were the hallmarks of bilateral relationship.

Naqvi said the counterterrorism dialogue will help formulate a joint strategy. He welcomed the US decision to designate the banned BLA and Majeed Brigade as foreign terrorist organisations, calling it a commendable step, and expressed hope that Pak-US cooperation would yield positive results in combating terrorism. Gregory LoGerfo acknowledged Pakistan’s geo-strategic importance and offered condolences over the loss of lives in terrorist attacks.