Pakistan and the United States have reached a mutual understanding on a tariff framework that will prevent the re-imposition of a 29 percent duty on Pakistani exports, mainly textiles and agricultural goods.
A formal announcement is expected once the US concludes similar talks with other trade partners.
The Pakistani delegation completed four days of negotiations in Washington and is set to return Friday, just ahead of the July 9 deadline. The suspended tariffs were set to resume if no agreement was reached.
The understanding covers a reciprocal long-term tariff arrangement and outlines potential US investments in Pakistan’s mining, energy, and infrastructure sectors. Discussions specifically included the Reko Diq copper-gold project and related energy infrastructure.
The deal may also boost Pakistani imports of US goods, particularly crude oil, and enhance engagement with the US Export-Import Bank.
Despite earlier flexibility indicated by US Treasury Secretary Scott Bessent, Pakistan pushed for an early conclusion to provide clarity for exporters and investors.
Officials believe the deal will sustain market access and reset strained trade relations impacted by the tariff measures introduced during the Trump administration.