Pakistan, US in final stretch of trade deal talks after 19% tariff win

Amid global tension on tariffs chaos, Pakistan and the United States are pressing forward with discussions on a new trade and investment framework, after Islamabad secured what it calls the lowest tariff rate among major South Asian economies. Speaking to Bloomberg TV, Pakistan’s Minister of State for Finance Bilal Azhar Kayani said that the Prime Minister Shehbaz Sharif’s government is seeking improved tariff terms on certain exports as part of the ongoing negotiations. The talks aim to finalise investment provisions alongside the trade deal, which was agreed in principle last month.

Tariff win boosts Islamabad’s negotiating position

As per Bloomberg, Pakistan reached the agreement with Washington at a 19 per cent tariff rate, lower than that of its regional peers. The development comes amid an upswing in bilateral relations, underscored by a rare meeting at the White House between US President Donald Trump and Pakistan’s army chief, General Asim Munir, who is making his second visit to the US in just a few months.

Oil partnership on the horizon

Announcing the trade pact last month, President Trump said the US would also work with Pakistan to tap what he described as the country’s “massive oil reserves.” According to Bloomberg, Washington is in the process of selecting a US oil company to lead the partnership.

Strategic reset in ties

The trade negotiations reflect a broader warming of the US–Pakistan relations after years of strained ties. Analysts see the tariff concession and potential energy cooperation as signs of a strategic reset, with Islamabad hoping to boost foreign investment and diversify its export markets.

If finalised, the US agreement could mark one of Pakistan’s most significant economic wins in recent years, potentially opening the door for expanded trade flows, energy development, and deeper geopolitical engagement with Washington.

(With inputs from the agencies)