Pakistan’s finance chief eyes ‘step-change’ US investment after Washington trade talks

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb meets US Secretary of Commerce Howard Lutnick (left) in Washington, DC, US, on July 18, 2025. (PID)
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Updated 19 July 2025
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Pakistan’s finance chief eyes ‘step-change’ US investment after Washington trade talks

  • Minister Muhammad Aurangzeb hints at forthcoming ‘leadership-level’ announcement in coming days
  • Says both sides have identified investment areas including minerals, mining and artificial intelligence

KARACHI: Pakistan and the United States are exploring a shift in their economic engagement from a trade-focused relationship to one anchored in long-term investment, Finance Minister Muhammad Aurangzeb said in a video message after high-level talks in Washington on Friday.

The meeting between Aurangzeb, US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer followed a virtual discussion last month during which both sides agreed to push negotiations forward “at the earliest.”

The talks come after the US imposed a 29 percent “reciprocal tariff” on Pakistani exports under President Donald Trump’s trade measures announced in April, a move Islamabad said could undercut its fragile, export-led recovery.

“One thing we discussed was that we have to move beyond the immediate trade imperative for it to be brought into the next level and bring in a real step change,” Aurangzeb said after his interaction with US officials.

“So, the investment imperative will come forward, and areas have already been identified in terms of minerals and mining, in terms of AI [artificial intelligence], in terms of digital infrastructure [and] crypto,” he continued. “We feel that this will be a real game changer, God willing, in terms of the relationship and the economic relationship between Pakistan and the United States.”

The Pakistani finance chief said both sides were committed to resolving outstanding trade issues to move “toward the finishing line” and begin investment-related discussions “very quickly.”

He also hinted at forthcoming announcements “at the leadership level,” which he said would reflect all the hard work and efforts that have been put in both by Pakistan and on the US side.

“We begin with trade, and then it will very quickly be followed through with investment discussions between the two countries and real execution of the investment upside,” he said, calling the next phase a “real win-win for Pakistan and the United States.”

Pakistan’s finance ministry has said the US remains its largest trading partner while emphasizing Islamabad’s interest in expanding cooperation beyond textiles to other sectors.

The US is Pakistan’s top export destination, with shipments totaling $5.44 billion in the 2023-24 fiscal year.

From July 2024 to February 2025, exports rose 10 percent from a year earlier, according to official data.


UN report says Pakistani Taliban getting Afghan support, could pose extra-regional threat

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UN report says Pakistani Taliban getting Afghan support, could pose extra-regional threat

  • Report calls TTP “one of the largest terrorist groups in Afghanistan,” says it enjoys greater liberty and support
  • The report says TTP has acquired sophisticated weapons, increasing the lethality of its cross-border attacks

ISLAMABAD: A United Nations Security Council report released this month confirmed Pakistan’s long-standing claim that Tehreek-e-Taliban Pakistan (TTP) is operating from Afghanistan with significant backing from the Taliban administration in Kabul, while warning that the group could evolve into an extra-regional threat.

Pakistan has frequently accused Afghanistan of sheltering proscribed armed factions, such as the TTP and the Balochistan Liberation Army (BLA), while also pointing a finger at the administration in Kabul for “facilitating” their attacks against Pakistani civilians and security forces.

The issue has become a key sticking point between the two neighbors, leading to fierce border clashes last year in which dozens were killed on both sides before Pakistan shut its frontier with Afghanistan.

The 37th report of the UN Security Council’s Analytical Support and Sanctions Monitoring Team said Afghanistan’s de facto authorities continued to provide a “permissive environment” for several armed groups, notably TTP.

“TTP operates as one of the largest terrorist groups in Afghanistan and its attacks on Pakistani security forces and State structures led to military confrontation,” the report said. “Attacks were increasingly complex and, at times, involved large numbers of fighters.”

“Some Member States expressed concern that TTP may deepen its cooperation with Al-Qaeda-aligned groups in order to attack a wider range of targets, potentially resulting in an extra-regional threat,” it added.

The report noted that an attack on an Islamabad courthouse on Nov. 11 that killed 12 people and was claimed by a TTP splinter group marked “the first attack in the capital for several years.”

The report said TTP “was accorded greater liberty and support from the de facto authorities [in Afghanistan], and consequently TTP attacks against Pakistan increased, amplifying regional tensions.”

It also stated that Al-Qaeda continued to enjoy patronage from the de facto authorities and acted as a “service provider and multiplier” for other groups, principally TTP, offering training and advice.

Several UN member states also observed the proliferation of sophisticated weapons from stockpiles left behind by the United States-led coalition, which withdrew from Afghanistan in August 2021, had enhanced the lethality of TTP attacks against Pakistani forces, according to the report.