Pakistan and US officials are currently in discussions to finalise the finer details of a trade deal that includes investments after securing the lowest tariff among major South Asian nations, Bloomberg reported on Monday.
Pakistan’s revised tariff rate of 19% is lower than that of several regional economies, including India (25%), Bangladesh (20%), Vietnam (20%), and Sri Lanka (20%).
Bilal Azhar Kayani told Bloomberg TV in an interview that Prime Minister Shehbaz Sharif’s government aims to secure a better tariff on certain exports during the ongoing talks with the US.
“The agreement with more details will be negotiated and discussed in the months ahead,” Kayani said.
The South Asian nation reached a trade deal last month with a 19% tariff – significantly lower than the initially proposed 29%, under a sweeping new executive order signed by President Donald Trump.
The two nations have seen an improvement in relations recently with Trump also hosting Pakistan’s Chief of Army Staff (COAS) Asim Munir for rare talks at the White House, who is on a second trip to the US within a few months.
President Donald Trump, while announcing the trade deal, said the US will work with Pakistan on developing “their massive oil reserves” and its in the process of choosing an oil company to lead the partnership.
The news of the deal came on the same day that Trump launched an unprecedented tariff attack against India - threatening tariffs of 25% - which were later increased to 50% - among the highest on any US trading partner, unless India stops buying Russian oil and weapons.
In India, Trump’s tariffs spark calls to boycott American goods
Trump has threatened higher tariffs on Russia and secondary sanctions on its allies, if Russian President Vladimir Putin does not move to end the war in Ukraine, and threatened to sanction both Russia and its allies.
He even expressed dissatisfaction with India’s participation in the “anti-US” BRICS grouping.
Their relations worsened as an Indian government source said Indian Prime Minister Narendra Modi would visit China for the first time in over seven years later this month.
During the announcement of oil reserves, Trump added how Pakistan “may be selling oil to India one day.”
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