U.S. tariff negotiations with Aurangzeb set for imminent conclusion, according to Dar's statements
Pakistan and the U.S. on the Brink of a New Trade Agreement
Pakistan and the United States are on the verge of finalizing a significant bilateral trade agreement, aiming to reset economic ties and manage reciprocal tariffs[1][2][4]. The deal, which could be concluded as early as August 2025, promises to establish a mutually beneficial relationship based on strategic cooperation rather than transactional dependency.
The Finance Minister of Pakistan, Muhammad Aurangzeb, is scheduled to travel to Washington to finalize the agreement. This will be his second visit to the U.S. within two weeks, following productive discussions with U.S. officials[2]. During his previous visit, Aurangzeb described the talks as "productive."
Currently, Pakistan faces a 29% tariff on its exports to the U.S. under President Donald Trump’s policies targeting countries with large trade surpluses. The new deal could set tariff rates that are competitive, likely in the 15-20% range, similar to those recently agreed upon with other countries like Japan, Indonesia, and Vietnam[1][2].
To offset the trade imbalance and ease tariff pressure, Pakistan has proposed importing more U.S. goods, including crude oil, and opening investment opportunities, notably through concessions in Pakistan's mining sector for U.S. companies[2].
The deal is part of an effort to shift U.S.-Pakistan economic relations toward greater stability and strategic partnership rather than a purely transactional framework[1]. Pakistani officials express optimism that the agreement could be concluded “in days, not weeks” from late July 2025[1][2][4].
Meanwhile, Pakistani Foreign Minister Ishaq Dar has issued a warning against India unilaterally obstructing water flows from rivers allocated to Pakistan under the Indus Waters Treaty. Dar also emphasized the need for transparent and regulated exploitation of Pakistan's mineral reserves, with 50% of proceeds going to the federal government and the remaining to the provinces[3].
In addition, Dar has underlined the importance of responsible mineral extraction, as it would generate employment opportunities for local communities. He also praised the efforts of Pakistan's armed forces, under the leadership of Field Marshal Asim Munir, in maintaining regional peace[3].
Dar also met with US Secretary of State Marco Rubio, describing the meeting as highly constructive. He also visited Kabul on April 19 and held discussions with caretaker ministers. The decisions reached were implemented by April 20[5].
It is important to note that legal proceedings involving the PTI founder remain within the jurisdiction of the courts and are not a matter for governmental intervention, as clarified by Dar[5]. Pakistan's domestic economic debt is $130 billion, but the country possesses mineral resources valued at over $6,000 billion[5].
In terms of regional peace, Dar conveyed Pakistan's position that sustainable peace in the region was unattainable without meaningful dialogue. A hotline was activated on May 10, facilitating a ceasefire between Pakistan and India[6]. Pakistan retains the rights to three rivers under the Indus Waters Treaty, and any unilateral amendments by India are not acceptable[6].
Moreover, a prospective railway link between Pakistan and Afghanistan could significantly enhance Pakistan's connectivity with global markets[7]. Pakistan is ready to resume composite talks with India whenever India signals its willingness[7].
In conclusion, Finance Minister Muhammad Aurangzeb’s upcoming visit to Washington is critical to concluding the U.S.-Pakistan tariff and trade agreement, which seeks to reduce tariffs, rebalance trade, and deepen economic ties by early August 2025[1][2][4].
[1] The Express Tribune. (2025, July 25). Pakistan-US trade deal close to conclusion: Ishaq Dar. Retrieved from https://tribune.com.pk/story/2375877/pakistan-us-trade-deal-close-to-conclusion-ishaq-dar
[2] Dawn. (2025, July 28). Finance Minister Muhammad Aurangzeb to visit Washington to finalize trade deal. Retrieved from https://www.dawn.com/news/1684400
[3] The News International. (2025, July 26). Ishaq Dar warns India against unilateral action on water flow. Retrieved from https://www.thenews.com.pk/latest/858921-ishaq-dar-warns-india-against-unilateral-action-on-water-flow
[4] The Express Tribune. (2025, July 26). Pakistan, US to finalize trade deal in days, not weeks: Ishaq Dar. Retrieved from https://tribune.com.pk/story/2375791/pakistan-us-to-finalize-trade-deal-in-days-not-weeks-ishaq-dar
[5] The Express Tribune. (2025, April 20). Ishaq Dar visits Kabul, holds talks with caretaker ministers. Retrieved from https://tribune.com.pk/story/2355331/ishaq-dar-visits-kabul-holds-talks-with-caretaker-ministers
[6] The News International. (2025, May 11). Pakistan retains rights to three rivers under Indus Waters Treaty. Retrieved from https://www.thenews.com.pk/latest/856573-pakistan-retains-rights-to-three-rivers-under-indus-waters-treaty
[7] The Express Tribune. (2025, April 28). Proposed railway link between Pakistan, Afghanistan to enhance connectivity. Retrieved from https://tribune.com.pk/story/2361283/proposed-railway-link-between-pakistan-afghanistan-to-enhance-connectivity
- The new trade agreement between Pakistan and the U.S., expected to be finalized by August 2025, may also involve talks on personal-finance matters, such as budgeting and reducing tariffs on Pakistani exports.
- As the U.S.-Pakistan trade deal progresses, policy-and-legislation discussions might ensue regarding finance, trade, and perhaps war-and-conflicts, particularly in relation to regional peace and stability.
- In addition to the tariff and trade agreement, the ongoing visit of Pakistani Foreign Minister Ishaq Dar to Washington might involve discussions on general-news matters, such as water disputes, Pakistan's mineral resources, and India's actions.
- Despite the focus on trade agreements, the ongoing political negotiations between Pakistan and the U.S. might also cover various topics, including domestic economic debt, the role of the armed forces, and the need for responsible mineral extraction to generate jobs.
- The upcoming U.S. trip by Pakistan's Finance Minister Aurangzeb may not only involve trade-related matters but could also touch upon other topics, such as strategic cooperation, regional politics, and policy-and-legislation, especially in relation to war-and-conflicts and peacekeeping efforts.
