Pakistan's business community applauds new trade deal with US
'The trade agreement between Pakistan and the US regarding tariff reduction is highly commendable,' Atif Ikram Sheikh, President of FPCCI, said in a statement on Thursday.
'The tariff agreement reflects the strengthening of bilateral cooperation, trade, and investment ties between the two countries,' he added.
The remarks come after Pakistan and the US struck a deal that will result in lower tariffs for the South Asian nation as well as an agreement in which Washington will help develop Islamabad's oil reserves, the two sides said.
'We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,' US President Donald Trump wrote on social media on Wednesday.
'We are in the process of choosing the Oil Company that will lead this Partnership.'
Trump's social media post did not provide further details.
Meanwhile, Pakistan's Finance Minister Muhammad Aurangzeb, in a video message on Thursday, termed the trade deal a 'win-win' situation for both countries.
'We are in a good place today in Pakistan, in terms of where we have arrived before August 1. We have come a long way in terms of our overall strategic partnership between Pakistan and the United States,' he said.
Pakistan faced a potential 29% tariff on exports to the United States under tariffs announced by Washington in April on countries around the world. Tariffs were subsequently suspended for 90 days so negotiations could take place.
US total goods trade with Pakistan was an estimated $7.3 billion in 2024, according to the website of the Office of the US Trade Representative, up from around $6.9 billion in 2023. The US goods trade deficit with Pakistan was $3 billion in 2024, a 5.2% increase over 2023.
'The US is Pakistan's largest trading partner, and this agreement will further boost the country's exports. The agreement will lead to reduced tariffs on Pakistani products in the US and improve market access,' said Sheikh.
He added that the agreement will 'mark the beginning of a new era of economic cooperation between the two countries in key sectors'.
The FPCCI President also reaffirmed the business community's full support for the government's initiatives aimed at national development.
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