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  • 7/5/2025
In a major breakthrough just days before the July 9 deadline, Pakistan and the United States have reached an understanding on a crucial trade and tariff agreement. Led by Commerce Secretary Jawad Paal, the Pakistani delegation held four days of negotiations in Washington aimed at avoiding the re-imposition of a 29% tariff on key exports like textiles and agricultural products.

While a formal announcement awaits the conclusion of similar talks with other U.S. partners, officials confirm that a broad framework has been agreed upon. The deal is expected to unlock access to the U.S. market, secure tariff relief, and attract potential American investment in Pakistan’s mining, energy, and infrastructure sectors — especially Reko Diq. The understanding also opens doors to cooperation with the U.S. Export-Import Bank. Both sides now look to reset strained economic ties dating back to the Trump-era tariff hikes, giving exporters and investors renewed confidence.

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