‘Diplomatic triumph': Pakistan hails historic trade pact with US

• PM says deal to boost economic cooperation between two countries.
• "This landmark deal will enhance our growing cooperation."
• Trump says US, Pakistan to develop oil reserves.
  

Hours after Pakistan and the United States reached a trade agreement on tariffs and oil reserves, Prime Minister Shehbaz Sharif thanked US President Donald Trump for his leadership in finalising a "historic" deal between the two countries.

The deal was concluded in Washington late last night after intensive talks between officials from both sides.

"We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves," Trump wrote on social media.

Taking to X, the prime minister termed the agreement “historic” and said it would help deepen economic ties and strengthen the broader partnership between the two countries.

"This landmark deal will enhance our growing cooperation to expand the frontiers of our enduring partnership in days to come," he said.

‘Major diplomatic success’

Minister of State for Finance Bilal Azhar Kayani has described Pakistan’s newly concluded trade deal with the United States as a major diplomatic success and a positive step for the country's economy.

In an exclusive interview with Geo News, Kayani said the agreement was the outcome of sustained diplomatic engagement in recent weeks. “This deal reflects the strength of our diplomacy,” he said, adding that his government worked consistently to strengthen diplomatic outreach.

He confirmed that the agreement includes tariff reductions on Pakistani exports to the US — a move expected to give a significant boost to the country’s trade.

“This is a welcome development for our economy,” Kayani added.

'Broader partnership taking shape'

Finance Minister Senator Muhammad Aurangzeb told Geo News that Pakistan and the United States had agreed to move trade and investment hand in hand, following a key meeting in Washington.

Speaking after talks with US Commerce Secretary Howard Lutting and Trade Representative Jameson Greer, Aurangzeb described the meeting as constructive and said the two sides finalised the trade agreement during the discussion.

“This deal reflects a broader economic and strategic partnership that’s now taking shape,” he said.

The minister thanked all those involved in the negotiations, saying the private sector had played a vital role and would continue to be supported, especially in helping to reduce the trade imbalance.

US total goods trade with Pakistan was an estimated $7.3 billion in 2024, according to the website of the Office of the US Trade Representative, up from around $6.9 billion in 2023. The US goods trade deficit with Pakistan was $3 billion in 2024, a 5.2% increase over 2023.

Dar says it's a done deal

Meanwhile, DPM Dar broke the news in a late-night post on X, declaring: "Pakistan concludes deal with USA, AlhamdoLilah." His announcement capped off what officials are calling a breakthrough moment in Pakistan’s economic diplomacy.

According to the statement released by the Ministry of Finance, the breakthrough came during Finance Minister Muhammad Aurangzeb's meeting with the US Secretary of Commerce and Trade Representative. Pakistan’s Ambassador to the US, Rizwan Saeed Sheikh, and Commerce Secretary Jawad Paul were also present.

"The purpose of the deal is to boost bilateral trade, improve market access, attract investment, and strengthen cooperation in areas of mutual interest," the official statement said.

"Under the agreement, there will be a reduction in tariffs, particularly on Pakistani exports to the US, and a fresh start in economic cooperation between the two countries.

"The two sides will focus on energy, minerals, information technology, cryptocurrency, and other key areas, the statement added.

It added that the agreement would help grow Pakistan’s trade ties with the US and improve access to each other’s markets. "It is also expected to draw more US investment into Pakistan’s infrastructure and development projects."