ISLAMABAD: State Minister for Finance and Revenue Bilal Azhar Kayani said on Thursday Pakistan expected a significant boost in exports to the United States following successful trade negotiations that convinced President Donald Trump’s administration to lower tariffs on Pakistani products to 19%.
Pakistan and the United States finalized a trade agreement last week under which 19% tariff was imposed on a wide range of Pakistani goods. The new rate marked a considerable reduction from the initially proposed 29% under a sweeping executive order signed by Trump.
Islamabad had pushed for a lower tariff than its regional competitors, including Vietnam, which now faces a 20% tariff, and India, whose exports were hit with an additional 25% levy a day earlier over continued imports of Russian oil.
“The trade deal that has just been finalized with America has resulted in us getting a 19% tariff, the lowest tariff in the South Asia region,” Kayani told lawmakers in the National Assembly. “This, God willing, will certainly lead to an increase in our exports.”
He emphasized the US was already Pakistan’s largest export destination.
“In the last fiscal year, out of $32 billion in exports, $6 billion went to America. So this is definitely a tried and tested market, our biggest export market, and the relative reduction in this tariff will certainly benefit us.”
Kayani said the trade breakthrough reflected a broader improvement in US-Pakistan relations, contrasting the current diplomatic engagement with a period of strained ties under the government led by the opposition Pakistan Tehreek-e-Insaf party.
“No one could have imagined that we would have this kind of relationship with America today, or that we would be signing a trade deal like this, one that would give Pakistan the lowest tariff in the South Asia region,” he said, urging the opposition to acknowledge the government’s achievement.
He also linked the ongoing momentum in the bilateral relations to what he called “diplomatic victories” after Pakistan’s recent four-day military standoff with India, which ended with a US-brokered ceasefire on May 10.
The minister noted that bilateral cooperation with Washington had expanded since then, adding that Pakistan’s army chief, Field Marshal Asim Munir, was invited to the White House for a meeting with President Trump in the aftermath of the same conflict.
Kayani’s remarks come at a time when Pakistan and the United States strengthen ties in key sectors including security, trade and investment.
President Trump announced earlier this month his administration would assist Pakistan in developing its oil reserves.
Washington and Islamabad are also collaborating in cryptocurrency, with Pakistan eyeing US investment in mining, rare earths and information technology.
