Iran, Pakistan reaffirm commitment to boost ties
FM Araghchi is part of Iranian President Dr Masoud Pezeshkian's delegation for his state visit to Pakistan.
The two leaders reaffirmed their commitment to strengthening Pakistan-Iran ties, with a focus on expanding cooperation in regional stability, trade, and economic collaboration.
They also discussed enhancing bilateral engagement across key areas of mutual interest.
Copyright Business Recorder, 2025
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In 1987, President Ronald Reagan said that at first when someone says let's impose tariffs on some foreign imports, it looks like they are doing the patriotic thing by protecting the American products and jobs and sometimes for a short while it works but only for a short-time. He went on to say that high tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. Thirty-eight years down the line, President Donald Trump has done exactly the opposite to it, which forced the world capitals to rush to Washington to get some respite at least until they come up with better alternatives. The US-Pakistan trade deal in the aftermath of Donald Trump's protectionist policy has apparently given an edge to Washington. But the deal has the potential to benefit Pakistan in many ways, starting from gaining political advantage, retaining market access to the US and luring back American companies after a long time. 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Through the new Executive Order of July 31st, hours before the expiry of the deadline to negotiate deals, President Donald Trump stated that after considering the information and recommendations he determined that it is necessary and appropriate to deal with the national emergency by imposing additional ad valorem duties on goods of certain trading partners. As a result, Pakistan now faces a 19% tariff on its exports to the United States. The revised tariff for Pakistan is down from the previous retaliatory tax of 29%, which was announced as a threat to come on the negotiations table. Importantly, the revised tariff is over and above the Most Favoured Nation (MFN) tariff, which means 19% is the minimum rate. Prime Minister's Coordinator on Commerce Rana Ihsaan Afzal said this at Pakistan's only premier show on economy, The Review, that 19% tariff was over and above the MFN tariff. 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The US Secretary of Commerce Howard Lutnick apprised the Pakistani negotiating team that he had been instructed by Donald Trump to conclude a favourable deal with investment in mines, minerals and cooperation in areas of artificial intelligence, crypto currencies, digital infrastructure and rare earth metals to help Pakistan's economy. This was also acknowledged by Finance Minister Muhammad Aurangzeb who said that the deal was a win-win due to Washington's interest to invest in Pakistan. It was probably for the first time in over a decade that the US has shown any serious interest in Pakistan's economy. A better part of the last one decade was consumed in US attempts to undermine the China-Pakistan Economic Corridor through using its diplomatic muscles and influencing the nation's economic policies through arm-twisting by the International Monetary Fund. It is said that Field Marshal and Chief of the Army Staff Asim Munir's meeting with President Donald Trump helped break the ice. Pakistani negotiators also expressed constructive approach toward the US demands, which helped to get something in return of giving complete market access. The deal's fine points are that Washington has gained market access at zero tariffs. Initially, there were reports that the US would be charged no import tariff against its exports on 1,714 tariff lines. Commerce Coordinator Rana Ihsaan disclosed in The Review programme, that the US has also been offered additional 2,400 tariff lines at zero rate, which are currently only available to China. Rana Ihsaan said that the US would get zero tariffs on over 4,100 tariff lines. Pakistan was negotiating the effectiveness of zero rates on US imports against 4,100 tariff lines from July 2026 due to needed legislative changes and also because of negative revenue implications. 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Express Tribune
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