Dar, Rubio discuss tariffs as FinMin due in US to finalise trade talks

• US is Pakistan’s largest export market with $5bn in trade.
• US Chargé d’Affaires meets FinMin Aurangzeb in Islamabad.
• Finance czar leaves for Washington for trade deal talks.

WASHINGTON/ ISLAMABAD: Pakistan and the United States continued talks on tariffs on Monday, as Islamabad pushes to secure a deal ahead of the August deadline, The News reported on Tuesday.

The discussion marked the second engagement in three days, following Deputy Prime Minister and Foreign Minister Ishaq Dar’s meeting with US Secretary of State Marco Rubio in Washington on July 25.

“Deputy Prime Minister and Foreign Minister Ishaq Dar spoke to the US Secretary of State Marco Rubio on the telephone today,” the Foreign Office said in a statement.

Following up on their productive meeting last Friday in Washington DC, the FO said that they discussed key bilateral matters, including tariffs, as well as regional and global issues of mutual interest.

The tariffs, initially set to take effect this month, have been temporarily deferred until August, allowing a brief window for high-stakes negotiations. The US remains Pakistan’s largest export market, accounting for around $5 billion in trade.

Meanwhile, to finalise a trade deal with the Trump Administration, Pakistan’s Minister for Finance Muhammad Aurangzeb has departed for Washington, DC, with the possibility of signing a mutually agreed tariff till the deadline of August 1, 2025.

Aurangzeb attended a meeting in the PM Office after which he was instructed to depart for Washington to strike a trade deal with the US. The Trump Administration had given a August 1 deadline; otherwise, they would implement a higher tariff against the countries on a reciprocal basis.

Earlier, the finance minister held a meeting with the US Chargé d’Affaires here, and it seems that the trade negotiations between the sides have been finalised, and a formal announcement is expected anytime soon after the arrival of Pakistani high-ups in Washington DC.

The question arises if Pakistan grants giant IT platforms tax exemption on tax proceeds recently enacted under the Finance Act, then Islamabad would have to grant the same treatment to Chinese companies as well.

Finance czar Aurangzeb’s US visit

According to an official statement issued by the Ministry of Finance, Finance Minister Aurangzeb has departed for the US to finalise discussions under the ongoing Pakistan-US trade dialogue, signalling a key step toward strengthening bilateral economic and commercial ties between the two nations.

The visit is aimed at concluding talks on a proposed trade agreement that is expected to bring mutual economic benefits and enhance cooperation across key sectors.

Officials emphasised that robust trade and economic relations remain a vital pillar of the Pakistan-US bilateral relationship, with the United States currently being Pakistan’s largest trading partner.

Pakistan is seeking to expand its bilateral trade ties with the US beyond traditional sectors, aiming to include non-conventional areas such as information technology, minerals, and agriculture. Both sides acknowledge the vast potential for collaboration in these strategic domains.

Aurangzeb’s visit is viewed as a crucial development in the effort to deepen economic engagement and explore new avenues for partnership, with particular focus on enhancing trade flows and fostering long-term investment opportunities.

Elizabeth Horst, US Chargé d’Affaires in Pakistan, called on Finance Minister Aurangzeb at the Finance Division on Monday. The meeting served as an opportunity to exchange views on matters of mutual interest and to reaffirm the positive trajectory of bilateral relations between Pakistan and the US.

The finance minister expressed appreciation for the longstanding support extended by the US towards Pakistan’s economic development. He particularly lauded the continued US support for macroeconomic stability achieved over the past year and a half, and welcomed the healthy momentum in bilateral engagement across various sectors.

Recalling his recent visit to the US, the minister shared insights from his productive meetings with US Secretary of Commerce Howard Lutnick and United States Trade Representative Ambassador Jamieson Greer in Washington, DC. He noted the encouraging progress in deepening trade and economic ties between the two countries.

Senator Aurangzeb underscored the importance of the US as Pakistan’s largest trading partner and highlighted Pakistan’s keen interest in broadening bilateral cooperation beyond traditional sectors. He specifically pointed to the promising potential in information technology, minerals, and agriculture as avenues for mutually beneficial collaboration.

The minister also briefed Horst on Pakistan’s recent macroeconomic indicators, including sovereign rating upgrades and renewed investor confidence. He outlined the government’s reform agenda, focused on critical areas such as taxation and energy, aimed at unlocking sustainable, long-term economic growth. Further, he shared updates on Pakistan’s successful entry into Middle Eastern capital markets, its upcoming plans for issuing the inaugural Panda bond, and future access to Euro and  Dollar markets.

Horst welcomed the economic progress and the government’s reform-driven approach, emphasising the US commitment to strengthening economic and trade ties with Pakistan. She reiterated US support for continued economic and political stability in Pakistan and expressed optimism for an enduring and robust business partnership between the two nations.

The meeting concluded with a mutual commitment to building on the momentum of current engagements to further deepen bilateral cooperation.