While the headlines scream flashpoints in Gaza, Ukraine, and the Taiwan Strait, a quieter but consequential shift is unfolding in Islamabad. Pakistan is nearing the end of an intense round of trade negotiations with the United States. These talks may signal economic mutualism and future cooperation between the two countries.
Pakistan’s Ministry of Commerce has confirmed that the latest trade talks between Pakistan and the US are scheduled to conclude next week. These negotiations are focused on reciprocal tariffs and are part of an endeavour to reset economic ties. Furthermore, it highlights Pakistan’s efforts to avoid US duties on exports. Hence, the finance ministry also mentioned that a longer-term investment partnership is under discussion.
The US imposed a 29% tariff on exports. This can be seen as President Trump’s strategy to target countries with large trade surpluses with the United States; evidently, Pakistan had a $3 billion surplus in 2024.
To ease the tariff pressures from the US, Pakistan has agreed to import more US goods, such as crude oil, and to open up investment opportunities through concessions for the United States.
Earlier this week, Pakistan and the US co-hosted a webinar promoting investment in Pakistan’s mineral sector, including the $7 billion Reko Diq project, revealing President Trump’s potential plan to counter Chinese influence in Balochistan.
Moreover, senior officials from both governments, along with US investors, engaged in discussions focused on public-private partnerships and regulatory reforms. Meanwhile, the US Export-Import Bank is currently evaluating financing proposals for the Reko Diq project, valued between $500 million and $1 billion.