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Islamabad and Washington have finalized a mutual understanding that forms the core of a Pakistan US tariff agreement, avoiding the return of a steep 29 percent duty on Pakistani exports, mainly textiles and agricultural products. The development secures key market access for Pakistan just ahead of a critical deadline.
According to reports, the Pakistan US tariff agreement was reached after four days of negotiations in Washington. The Pakistani delegation will return home this week, narrowly ahead of the July 9 deadline, which would have triggered the reinstatement of tariffs if no deal was in place.
A formal announcement is expected once the US concludes parallel discussions with other trading partners. The agreement lays out a reciprocal, long-term tariff framework that not only preserves Pakistan’s crucial export market but also sets the foundation for future US investments. Talks covered strategic areas like mining, energy, and infrastructure, with particular focus on the Reko Diq copper-gold project and its supporting energy facilities.
The deal is also anticipated to increase Pakistan’s imports of American goods, especially crude oil, and deepen collaboration with the US Export-Import Bank.
Despite signals of flexibility earlier from US Treasury Secretary Scott Bessent, Pakistan pushed for a swift conclusion to the discussions. Officials said this clarity was needed to reassure exporters and attract foreign investors.
The Pakistan US tariff agreement is seen as essential to maintaining market access and reviving trade ties that had been strained by the tariff measures rolled out during the Trump administration. With this understanding in place, both countries aim to reset economic relations and explore broader investment opportunities.
