ISLAMABAD: Pakistan and the United States are pursuing a revised bilateral trade agreement to expand commercial ties, improve market access and attract investment, as two-way trade in goods and services reached an estimated USD11.5 billion in 2025, up 14 percent from the preceding year.
Several rounds of negotiations have been held in Washington under the leadership of Finance Minister and Revenue, Senator Muhammad Aurangzeb, while additional discussions have taken place through video links. However, several issues remain unresolved and require further negotiations, well-informed sources told Business Recorder.
The progress of negotiations and prospects for expanding bilateral economic cooperation came under discussion at a meeting between a US delegation led by Chargé d’Affaires Natalie A. Baker and Federal Minister for Commerce Jam Kamal Khan here on Wednesday.
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Rana Ihsaan Afzal Khan, Coordinator to the Prime Minister on Commerce and Industries, Secretary Commerce Jawad Paul and senior officials of the Ministry of Commerce also attended the meeting.
According to the US trade figures, bilateral trade in goods and services totaled an estimated USD11.5 billion in 2025, an increase of USD1.4 billion, or 14 percent, over 2024.
Trade in goods amounted to USD8.5 billion, with US exports to Pakistan rising 48.4 percent to USD3.1 billion, compared with the previous year. US imports from Pakistan stood at USD5.4 billion, up 5.9 percent.
Consequently, the US goods trade deficit with Pakistan declined 23.9 percent to USD2.3 billion in 2025, a reduction of USD719 million compared with 2024.
Trade in services totaled an estimated USD2.9 billion. US services exports to Pakistan increased 6.6 percent to USD1.8 billion, while imports of services from Pakistan declined 1.7 percent to USD1.1 billion. The US recorded a services trade surplus of USD731 million, up 22 percent from 2024.
The meeting reviewed progress on the proposed Pakistan-US bilateral reciprocal trade agreement. Secretary Commerce Jawad Paul informed participants that substantial progress had been achieved on several important provisions, although a few technical issues remained to be discussed with the Office of the United States Trade Representative (USTR).
Both sides expressed their commitment to continuing negotiations towards a mutually beneficial agreement.
Improving market access for Pakistani agricultural products, particularly mangoes and dates, was another key item on the agenda.
Jawad Paul stressed the need to expedite visits by relevant US inspection teams to facilitate mango export arrangements and sought progress on the pending market access process for Pakistani dates. Greater access to the US market could generate valuable export opportunities, particularly for growers and businesses in Balochistan, he noted.
The US delegation welcomed the proposals and indicated its willingness to follow up with the relevant American authorities.
The two sides also explored opportunities to expand agricultural trade, particularly US exports of cotton and soybeans to Pakistan. Discussions covered competitive pricing, trade financing and possible financing arrangements to facilitate imports from the United States.
Jawad Paul emphasised the importance of closer coordination with relevant trade institutions and industry associations to strengthen bilateral agricultural commerce.
Commerce Minister Jam Kamal Khan said Pakistan attached considerable importance to its longstanding economic partnership with the United States and believed there was significant potential to expand trade through improved market access, greater private-sector engagement and investment in emerging sectors.
He highlighted Pakistan’s efforts to diversify export markets and strengthen international commercial partnerships amid regional and global economic challenges. Deeper economic engagement with the United States, he said, could create new business opportunities, improve industrial competitiveness and support sustainable economic growth.
The minister encouraged American companies to explore investment opportunities in agriculture, food processing and livestock, particularly in modern agricultural machinery, food-processing technologies, cold-chain infrastructure and improved farming practices.
He also invited American businesses and agricultural organisations to participate in FoodAg 2026, scheduled to be held in Karachi from November 23 to 26. The exhibition would provide a platform for connecting international buyers and investors with Pakistan’s agricultural and food-processing industries.
The US Chargé d’Affaires appreciated Pakistan’s efforts to promote agricultural trade and expressed interest in facilitating greater engagement between American agricultural technology companies and Pakistani businesses.
Highlighting Balochistan’s economic potential, Jam Kamal identified dates, olive oil and other agricultural products as promising areas for value addition and export development. He said international cooperation could help improve processing facilities, product quality, packaging and access to international markets, creating opportunities for small enterprises, farmers and women entrepreneurs.
Mineral exploration and mining also featured prominently in the discussions, with both sides exploring opportunities for investment, technical cooperation, skills development and responsible resource development.
The US delegation conveyed continued interest in strengthening cooperation in Pakistan’s mineral sector, including opportunities for American companies to provide technical expertise, investment and commercial partnerships.
The minister also highlighted the industrial potential of Hub in Balochistan, citing its proximity to Karachi and opportunities for investment in manufacturing, industrial infrastructure and special economic zones. He welcomed the existing presence of American companies in Pakistan and encouraged further private-sector investment.
Regional trade connectivity was another area of discussion. Jawad Paul highlighted disruptions affecting traditional land trade routes, particularly those connecting Pakistan with Afghanistan and Central Asian markets.
He emphasised that uninterrupted regional connectivity, predictable trade arrangements and efficient logistics were essential for sustaining export growth and maintaining long-term commercial relationships.
Jam Kamal reiterated Pakistan’s commitment to strengthening economic resilience, improving the business environment and expanding trade opportunities while taking broader regional developments into account.
Both sides acknowledged the importance of continued institutional dialogue, stronger business-to-business contacts and practical cooperation in promoting shared economic interests.
Concluding the meeting, the minister reaffirmed Pakistan’s commitment to developing a forward-looking economic partnership with the United States based on mutual respect, shared opportunities and sustainable commercial growth.
Natalie A. Baker appreciated the constructive discussions and reiterated US interest in expanding economic engagement with Pakistan, particularly in trade, agriculture, technology and investment.
Both sides agreed to maintain close coordination to advance the ongoing trade negotiations, address outstanding market access issues and explore new avenues for mutually beneficial economic cooperation.
Copyright Business Recorder, 2026
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