Pakistan and US Reach Trade Agreement Before Deadline

In a major development, Pakistan and the United States have reached an understanding on a crucial trade agreement — a week before the July 9 deadline. The breakthrough came after a four-day round of intense talks in Washington, led by Pakistan’s Commerce Secretary Javed Paul. The deal is expected to protect Pakistan’s key export sectors, especially textiles and agriculture, from heavy US tariffs.

The main objective of the Pakistani delegation was to stop the reimposition of a 29% tariff on key exports. These duties, temporarily lifted earlier this year, were set to return if talks failed by the deadline. According to sources close to the negotiations, both sides agreed on a broad long-term tariff framework that will benefit both economies.

Although a formal announcement is pending—awaiting the conclusion of US talks with other trade partners—the agreement opens new doors. It could boost US crude oil exports to Pakistan and encourage American investment in mining, energy, and infrastructure. The copper and gold project at Reko Diq was a central topic, along with infrastructure needs to support it.

The deal is also expected to increase collaboration via the US Export-Import Bank, allowing smoother financial support for bilateral projects. Pakistani officials pushed for an early deal to avoid uncertainty for local exporters and foreign investors. They were also keen to rebuild trust in economic relations damaged by the previous US administration’s high tariff policies.

Officials remain hopeful that this agreement will secure continued access to US markets for Pakistani goods, stabilize trade ties, and attract much-needed foreign investment in priority sectors. The deal marks a positive shift in economic diplomacy between the two nations.

According to the source: Daily Times.