Pakistan, US push to finalize trade deal following Trump’s tariff decision

A State Department contractor adjust a Pakistan national flag before a meeting between U.S. Secretary of State John Kerry and Pakistan's Interior Minister Chaudhry Nisar Ali Khan on the sidelines of the White House Summit on Countering Violent Extremism at the State Department in Washington on February 19, 2015. (REUTERS/File)
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Updated 17 June 2025
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Pakistan, US push to finalize trade deal following Trump’s tariff decision

  • Finance Minister Aurangzeb holds a virtual meeting with US Commerce Secretary Howard Lutnick
  • Both sides agree to hold technical-level talks in the coming days under a mutually agreed roadmap

KARACHI: Pakistan and the United States have agreed to move forward with negotiations aimed at finalizing a trade deal “at the earliest,” as Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick held a virtual meeting to discuss recently imposed American “reciprocal tariffs,” Pakistan’s finance ministry said on Tuesday.

Last month, Islamabad announced it had formally launched talks with the US following the imposition of steep tariffs by President Donald Trump’s administration on several countries, including Pakistan.

The duties, which Washington says are meant to correct trade imbalances and ensure fair treatment of American goods, have been widely criticized as a blow to global economic recovery efforts in the aftermath of the COVID-19 pandemic.

Pakistan has been hit with a 29 percent tariff on its exports to the US at a time when the country is trying to drive economic growth through increased exports.

“Further to Pak-US negotiations on US reciprocal tariffs, a virtual meeting took place between Mr. Muhammad Aurangzeb, Pakistan’s Finance Minister, and Howard Lutnick, United States’ Commerce Secretary on 16th June, 2025,” the finance ministry said in its statement.

“Both sides resolved to carry forward their negotiations through a constructive engagement to finalize the trade deal at the earliest,” it added.

The ministry informed the discussion focused on strengthening trade and investment and deepening economic ties between the two countries.

Both sides agreed to hold further technical-level discussions in the coming days, based on a mutually agreed roadmap.

The United States is Pakistan’s largest export market, and analysts warn that the new tariffs could undermine Islamabad’s fragile economic recovery.

According to Pakistan’s central bank, the country exported $5.44 billion worth of goods to the US in 2024. From July 2024 to February 2025, exports stood at $4 billion, up 10 percent compared to the same period last year.

Nearly 90 percent of Pakistan’s exports to the US are textiles, a sector likely to bear the brunt of the tariff impact.

Trade experts have also cautioned that the duties could erode Pakistan’s competitiveness, especially if regional players such as China, Bangladesh and Vietnam shift focus to European markets, intensifying competition in alternative destinations.


Pakistan condemns Netanyahu’s ‘hexagon of alliances’ plan, says alert to growing India-Israel defense ties

Updated 26 February 2026
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Pakistan condemns Netanyahu’s ‘hexagon of alliances’ plan, says alert to growing India-Israel defense ties

  • Israel’s Netanyahu last week proposed an alliance of countries in and around Middle East against its adversaries
  • Pakistan maintains “robust military preparedness” to deter any potential aggression, says foreign office spokesperson

ISLAMABAD: Pakistan’s foreign office spokesperson on Thursday condemned Israeli Prime Minister Benjamin Netanyahu’s recent statement about forming a “hexagon of alliances” within or around the Middle East, saying Islamabad was alert to growing defense ties between New Delhi and Tel Aviv. 

Netanyahu on Sunday outlined plans to form a new regional bloc, describing it as a “hexagon of alliances” that he said could include Israel, India, Greece and Cyprus, along with other unnamed Arab, African and Asian states. He said the grouping would collectively stand against what he described as “radical” adversaries.

His comments came days before Indian Prime Minister Narendra Modi arrived in Israel on Wednesday for a two-day trip to bolster ties. The two are expected to discuss cooperation in science and technology, innovation, agriculture, water management, technology, defense and security during the trip. 

The statement drew a sharp response from Pakistan’s Senate, which unanimously passed a resolution on Tuesday rejecting Netanyahu’s remarks.

“I would also like to draw your attention to the recent resolution adopted by the Senate of Pakistan that strongly condemned such remarks and attempts to undermine Muslim unity,” Foreign Office spokesperson Tahir Andrabi told reporters during a weekly press briefing.

“We continue to condemn these provocative steps and statements by the leadership of the occupying power that threaten regional peace and stability,” he added.

Netanyahu had also said Israel’s goal was to create an axis of nations that see eye to eye against what he described as the “radical Shia” and “radical Sunni” axis of nations. 

Andrabi said attempts to divide the Muslim world along sectarian lines were a “nefarious design” on Netanyahu’s part.

India is Israel’s largest arms buyer and second-largest trading partner in Asia, after China. In response to a question on India’s growing defense ties with Israel, Andrabi said Pakistan remained cognizant of the risks posed by such cooperation.

“Yes, we remain seized of the defense ties between Israel and India,” the spokesperson said, noting that certain “systems and platforms” may have been used by India against Pakistan in the past.

“We are alive to the threats they pose to our security, sovereignty and territorial integrity, as well as to regional peace and stability.”

Andrabi said Pakistan maintained “robust military preparedness” to deter any potential aggression from hostile forces.

‘UTMOST CAUTION EXERCISED’

Andrabi spoke about Pakistan’s recent strikes against alleged militant camps in Afghanistan, saying Islamabad had conducted them in self-defense and with extreme caution to avoid casualties. 

Pakistan said it carried out airstrikes in Afghanistan against militant camps and hideouts in three provinces on Saturday night, killing over 100 militants. Afghanistan accused Pakistan of violating its territorial sovereignty and killing dozens of civilians. Kabul has vowed to retaliate. 

Andrabi said the strikes were carried out to ensure protection for the lives of the people of Pakistan and to prevent “imminent terrorist attacks.”

“These actions were directed solely against identified terrorist camps and hideouts, and utmost caution was exercised to prevent harm to civilians,” he said. 

He warned Pakistan would take necessary measures under its right to self-defense against “terrorist threats” emanating from Afghan territory.

On the safety of Pakistani nationals in Afghanistan following the strikes, Andrabi said Islamabad had raised the issue with Afghan authorities, adding that Islamabad expected “foolproof security” for Pakistani diplomats and civilians.