Sat Jul 05 05:51:31 UTC 2025: **Summary:**

Pakistan and the U.S. have reached an understanding on a trade deal aimed at shaping Pakistan’s export sectors and preventing the re-imposition of a 29% tariff on Pakistani goods, primarily textiles and agricultural products. The agreement, finalized just before a July 9th deadline, could lead to increased Pakistani imports of U.S. goods, particularly crude oil, and potential American investment in Pakistan’s mining, energy, and infrastructure sectors. The deal is also expected to reset strained bilateral economic ties that were impacted by tariffs introduced during the Trump administration.

**News Article:**

**Pakistan and U.S. Strike Landmark Trade Deal, Averting Tariff Crisis**

**Islamabad – July 5, 2025** – Pakistan and the United States have announced a crucial understanding on a comprehensive trade agreement after intense negotiations in Washington. The deal, reached just days before a looming July 9th deadline, is poised to reshape Pakistan’s key export sectors and marks a significant step toward resetting strained bilateral economic ties.

Commerce Secretary Jawad Paal led the Pakistani delegation to finalize the agreement, which aims to prevent the re-imposition of a 29% tariff on Pakistani exports, primarily textiles and agricultural products. This tariff relief was temporarily paused earlier this year and was at risk of expiring without progress.

Sources familiar with the negotiations report that the four-day talks were successful, resulting in a broad framework agreed upon by both sides. The agreement could lead to increased Pakistani imports of U.S. goods, notably crude oil, and open doors for American investment in Pakistan’s mining, energy, and infrastructure sectors, including projects like the Reko Diq copper and gold mine. Expanded engagement through the U.S. Export-Import Bank is also anticipated.

While a formal announcement is expected after the U.S. concludes similar negotiations with other trade partners, Pakistani officials express optimism that the deal will sustain Pakistan’s access to the U.S. market and improve the economic relationship between the two countries, which had been hampered by high tariffs introduced during the Trump administration. The successful negotiation is being hailed as a vital step toward restoring economic stability and fostering growth for Pakistan.

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