PM Shehbaz hails President Trump’s leadership as historic trade pact marks new era of economic cooperation
In a significant diplomatic and economic milestone, Pakistan and the United States have concluded a landmark trade agreement aimed at deepening bilateral ties, enhancing market access, and launching joint efforts in key sectors including oil reserves, energy, and information technology.
Prime Minister Shehbaz Sharif lauded the development as a “historic” moment in Pakistan-US relations, expressing gratitude to US President Donald Trump for his leadership in concluding the pact. “This landmark deal will enhance our growing cooperation and expand the frontiers of our enduring partnership in the days to come,” the premier said in a post on social media platform X.
President Trump, announcing the agreement on his social platform, confirmed that the US and Pakistan would work together to develop Pakistan’s substantial oil reserves. “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,” he stated.
Strategic Breakthrough
The trade deal was finalised after days of intensive negotiations in Washington between Pakistani and US officials. According to Pakistan’s Ministry of Finance, the agreement includes tariff reductions on Pakistani exports, support for US investment in Pakistani infrastructure, and enhanced cooperation in sectors such as energy, minerals, IT, and cryptocurrency.
“This is a major diplomatic success,” said Minister of State for Finance Bilal Azhar Kayani in an interview with Geo News. He emphasized the sustained efforts by Pakistani diplomats and policymakers, stating that the deal reflects the government’s commitment to revitalising economic diplomacy.
“This agreement will open new avenues for our exports, attract foreign investment, and strengthen Pakistan’s position in the global trade ecosystem,” he said.
Finance Minister Senator Muhammad Aurangzeb, who led Pakistan’s delegation in Washington, said the agreement marks the beginning of a broader strategic and economic partnership between the two nations.
Following meetings with US Commerce Secretary Howard Lutting and US Trade Representative Jameson Greer, Aurangzeb described the discussions as “constructive and forward-looking.” He acknowledged the vital contribution of the private sector in shaping the deal and pledged continued support to address trade imbalances and investment challenges.
“This deal signals a fresh chapter in Pakistan-US relations one defined not just by diplomacy but by shared economic vision,” Aurangzeb said.
According to data from the Office of the US Trade Representative, total goods trade between Pakistan and the United States reached approximately $7.3 billion in 2024, up from $6.9 billion in 2023. However, the US trade deficit with Pakistan stood at $3 billion in 2024 a 5.2% rise from the previous year.
“It’s a Done Deal” – DPM Dar
Deputy Prime Minister Ishaq Dar also confirmed the breakthrough late Wednesday night, writing on X: “Pakistan concludes deal with USA, AlhamdoLilah.”
The Ministry of Finance said the agreement was finalised during a high-level meeting that included Finance Minister Aurangzeb, Pakistan’s Ambassador to the US Rizwan Saeed Sheikh, and Commerce Secretary Jawad Paul.
“The objective of this agreement is to boost bilateral trade, improve access to each other’s markets, attract US investment, and facilitate long-term economic cooperation,” the statement said.
The deal is expected to catalyze American investment in Pakistan’s energy, technology, and development sectors, while creating new export opportunities for Pakistani industries.
