Pakistan and the United States are pursuing a revised bilateral trade agreement aimed at expanding commercial relations, improving market access and attracting investment across key sectors. The renewed negotiations come as bilateral trade in goods and services reached an estimated $11.5 billion in 2025, representing a 14 percent increase compared with the previous year. Both countries have expressed their commitment to resolving outstanding issues and developing a mutually beneficial framework for future economic cooperation.
Several rounds of negotiations have taken place in Washington under the leadership of Finance Minister and Revenue Senator Muhammad Aurangzeb, while additional discussions have been conducted through video conferences. However, some issues remain unresolved and require further negotiations, according to sources cited by Business Recorder. Progress on the proposed agreement was also discussed during a meeting between a United States delegation led by Chargé d’Affaires Natalie A. Baker and Federal Minister for Commerce Jam Kamal Khan in Islamabad on Wednesday.
Rana Ihsaan Afzal Khan, Coordinator to the Prime Minister on Commerce and Industries, Commerce Secretary Jawad Paul and senior Ministry of Commerce officials attended the meeting. Participants reviewed the status of the proposed Pakistan-US bilateral reciprocal trade agreement, with Jawad Paul informing the meeting that substantial progress had been achieved on several important provisions. A number of technical matters, however, still require discussion with the Office of the United States Trade Representative. Both sides agreed to continue negotiations to address the remaining issues and move towards an agreement that supports trade and investment.
According to US trade figures cited in the report, bilateral trade in goods and services reached approximately $11.5 billion in 2025, an increase of $1.4 billion over 2024. Trade in goods accounted for $8.5 billion of the total. US exports to Pakistan increased 48.4 percent to $3.1 billion, while US imports from Pakistan rose 5.9 percent to $5.4 billion. As a result, the US goods trade deficit with Pakistan declined 23.9 percent to $2.3 billion, a reduction of $719 million from the preceding year.
Trade in services was estimated at $2.9 billion in 2025. US services exports to Pakistan grew 6.6 percent to $1.8 billion, while imports of services from Pakistan declined 1.7 percent to $1.1 billion. The United States recorded a services trade surplus of $731 million, up 22 percent compared with 2024. These figures indicate that goods and services are both important components of the bilateral economic relationship, while differences in export and import trends continue to shape the overall trade balance.
Improving access for Pakistani agricultural products to the US market was a key subject of the discussions. Pakistan specifically raised the need to facilitate exports of mangoes and dates, with Commerce Secretary Jawad Paul calling for US inspection teams to visit Pakistan promptly to help advance arrangements for mango exports. He also sought progress on the pending market access process for Pakistani dates. Better access to the American market could create additional opportunities for farmers, exporters and food businesses, particularly in Balochistan, where dates are an important agricultural product.
The US delegation welcomed the proposals and indicated that it would follow up with the relevant American authorities. Discussions also covered opportunities to expand agricultural trade in the opposite direction, particularly US exports of cotton and soybeans to Pakistan. Participants considered factors such as competitive pricing, trade financing and potential financing arrangements that could facilitate imports from the United States. Jawad Paul highlighted the importance of coordination with trade institutions and industry associations to support agricultural commerce and identify practical opportunities for businesses in both countries.
Commerce Minister Jam Kamal Khan said Pakistan placed considerable importance on its longstanding economic partnership with the United States. He highlighted the potential to expand trade through improved market access, stronger private-sector participation and investment in emerging industries. Pakistan, he said, was working to diversify its export markets and strengthen international commercial relationships amid regional and global economic challenges. Greater economic engagement with the United States could create business opportunities, support industrial competitiveness and contribute to sustainable growth.
The minister encouraged American companies to explore investment opportunities in agriculture, food processing and livestock. Areas identified for potential cooperation included modern agricultural machinery, food-processing technology, cold-chain infrastructure and improved farming practices. Such investment could help businesses improve productivity, processing capacity and product quality, while strengthening the ability of Pakistani agricultural goods to compete in international markets.
Jam Kamal also invited American companies and agricultural organisations to participate in FoodAg 2026, scheduled to take place in Karachi from November 23 to 26. The exhibition is expected to provide a platform for international buyers, investors and businesses to connect with Pakistan’s agricultural and food-processing industries. The US Chargé d’Affaires appreciated Pakistan’s efforts to promote agricultural trade and expressed interest in facilitating stronger engagement between American agricultural technology companies and Pakistani businesses.
Balochistan’s potential for agricultural value addition was another area highlighted during the meeting. Jam Kamal identified dates, olive oil and other agricultural products as opportunities for developing processing, packaging and export activities. International cooperation in these areas could support improvements in product quality and market access, while creating opportunities for farmers, small enterprises and women entrepreneurs. The discussions also covered mineral exploration and mining, with both sides exploring possible investment, technical cooperation, skills development and responsible resource development. The US delegation conveyed continued interest in cooperation with Pakistan’s mineral sector, including opportunities for American companies to contribute expertise and investment.
The minister also highlighted the industrial potential of Hub in Balochistan, citing its proximity to Karachi and opportunities in manufacturing, industrial infrastructure and special economic zones. He welcomed the presence of existing American companies in Pakistan and encouraged additional private-sector investment. Regional trade connectivity was discussed as well, with Jawad Paul pointing to disruptions affecting traditional land routes linking Pakistan with Afghanistan and Central Asian markets. He stressed that predictable trade arrangements, uninterrupted connectivity and efficient logistics were important for export growth and the maintenance of long-term commercial relationships.
Both sides concluded the meeting by reaffirming their commitment to continued dialogue and practical cooperation. The discussions covered outstanding issues in the proposed trade agreement, agricultural market access, investment in emerging sectors and stronger business-to-business engagement. The next steps will involve continued coordination between relevant authorities to resolve technical matters, advance pending export arrangements and identify further opportunities for trade and investment. The proposed agreement remains under negotiation, with both countries seeking a framework that can strengthen commercial ties and support broader economic cooperation.
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