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.
