A landmark trade agreement between Pakistan and the United States marks a turning point in bilateral ties, shifting the focus from aid and dependency toward economic partnership and strategic cooperation.
The new trade deal offers significant relief by reducing tariffs on over 200 Pakistani exports, including textiles, surgical instruments, food products, IT services and sports goods. These tariff reductions will help Pakistan expand its exports, boost domestic industries and generate employment. In exchange, Pakistan has agreed to lower tariffs on selected US goods, ensuring mutual commercial benefit.
This agreement reflects Pakistan’s vision of progress through trade and economic diplomacy. It demonstrates a clear intent to move away from aid-driven relations and instead build a partnership rooted in commerce, innovation and mutual respect. Finance Minister Muhammad Aurangzeb’s visit to Washington for the IMF-World Bank spring meetings laid the groundwork. During his interactions with key US trade and financial officials, the focus remained on trade expansion, technology cooperation and investment frameworks. Shortly afterward, Deputy Prime Minister and Foreign Minister Ishaq Dar also visited the US, holding meetings with top American officials and think tanks, including a high-level discussion at the Atlantic Council.
As Deputy PM Ishaq Dar stated at the Atlantic Council, “Pakistan believes in peace through resilience and responsibility.” He reaffirmed China as a key economic partner and described the US as a trusted friend, highlighting the need to strengthen trade and investment with both for regional stability and prosperity. In his meeting with US Secretary of State Marco Rubio, both sides emphasized expanding cooperation in trade, counterterrorism, energy and digital innovation.
Pakistan’s balanced foreign policy approach, aimed at maintaining friendly relations with all major powers, remains central to its global strategy. This inclusive diplomacy has allowed Pakistan to deepen ties with China through CPEC while actively seeking renewed cooperation with the US, Gulf countries and the EU. The economic benefits of the US trade agreement are substantial: enhanced export earnings, stronger industrial output, foreign investment inflows and global market integration. Additionally, emerging sectors such as cryptocurrency regulation, fintech, mineral exploration and clean energy offer vast opportunities for US companies to invest in Pakistan’s growing market.
Pakistan has also called for broader US market access and progress toward a Free Trade Agreement. Such a framework would solidify gains and pave the way for deeper economic and strategic collaboration. Giving Pakistani products greater access to the US market is key to transforming long-standing goodwill into a resilient and future-focused alliance. The path forward is clear: economic partnership, not dependency, must define the next chapter of Pakistan-US relations.
— The writer is an Islamabad-based broadcast journalist.