Business
Pakistan Proposes Zero-Tariff Trade Deal to U.S.
ISLAMABAD – Pakistan has formally proposed a bilateral zero-tariff trade agreement with the United States, government sources confirmed on Thursday, marking a potential shift in economic relations between the two nations.
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The offer, currently under discussion, would eliminate tariffs on selected goods to expand trade across multiple sectors.
“This mutually beneficial agreement aims to enhance two-way commerce between Pakistan and the U.S.,” a senior official stated anonymously.
The proposal follows U.S. President Donald Trump’s recent role in mediating last week’s tense ceasefire between Pakistan and India.
In a tweet after the de-escalation, Trump praised both countries’ leadership and expressed intent to increase trade with them.
The diplomatic overture comes amid easing tensions after February’s military confrontation, when:
- India conducted airstrikes in Pakistan following the Pulwama attack
- Pakistan retaliated with “Operation Swift Retort,” targeting Indian military positions
- Both nuclear-armed nations eventually agreed to a ceasefire after their worst clashes in decades
While full details of the proposed tariff agreement remain undisclosed, data presented to Pakistan’s National Assembly shows existing U.S.-Pakistan trade volume stands at 7.3$ billion annually, with textiles and agricultural products comprising major exports.
Analysts suggest the move could signal Islamabad’s effort to strengthen economic ties with Washington after years of strained relations over security and counter-terrorism issues.
