In a bid to improve bilateral economic ties with the US, a Pakistani delegation has made it to America to finalise the terms of a potential trade agreement, more than two months after the imposition of import tariffs by US President Donald Trump.

Reports reveal that Federal Commerce Secretary Jawad Paul Khawaja is leading the delegation and is set to engage with top officials, including US Trade Representative Jamieson Greer, in Washington DC. Following Finance Minister Muhammad Aurangzeb’s meeting with US Commerce Secretary Howard Lutnick, the Finance Ministry stated talks between both sides were likely to conclude this week.

It merits a mention that discussions surrounding Pak-US trade have been taking place for over a month. These discussions have revolved around the 29 percent reciprocal tariff which the US levied on Pakistani imports.

As per reports, the trade discussions are an effort to reset bilateral economic ties “at a time of shifting geopolitical alignments”. Currently, Pakistan is in discussion with the US to collaborate over the long term to foster a “strategic and investment partnership”.

Reports suggest that the federal government has offered to ramp up the import of US goods such as crude oil. Moreover, Pakistan is expected to facilitate US companies in tapping into Pakistan’s vast mineral reserves.

Historically, Pakistan has imported crude oil from Middle Eastern countries such as the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE). The reason behind importing petroleum products from the Middle East lies in Pakistan’s close proximity to the region, allowing for lower transportation costs.

As for the facilitation of US firms in the mining sector, Federal Minister for Energy Ali Pervaiz Malik called upon US companies and firms last week to tap into Pakistan’s mineral deposits. Key officials from the Ministry of Energy, SIFC representatives and US diplomats attended a webinar, which was reportedly broadcast from the head office of Oil and Gas Development Company Ltd (OGDCL). 

The event was held jointly by the US Embassy in Pakistan and the Ministry of Energy. Both parties organised the webinar to boost bilateral economic ties and investment opportunities in the mining sector.

Following Pakistan’s concessions, the Finance Ministry, while commenting on the ongoing negotiations, highlighted how “both sides showed satisfaction”. While ramping up imports from the US may serve to worsen foreign exchange outflows, analysts have also outlined how leveraging Pakistan’s mineral deposits could bring in much-needed foreign exchange for cash-strapped Pakistan.