In a major breakthrough, Pakistan and the United States have reached a crucial understanding during the latest round of Pakistan-US trade talks, helping safeguard Pakistan’s textile and agricultural exports from heavy tariffs.

Led by Commerce Secretary Javed Paul, the Pakistani delegation concluded a successful four-day round of negotiations in Washington ahead of the critical July 9 deadline. According to sources, both sides agreed on the framework of a long-term bilateral tariff agreement, although a formal announcement will be made once the US finalises talks with its other trade partners.

At the heart of the negotiations was Pakistan’s effort to secure permanent removal of the 29% tariff on key exports—a temporary suspension that had been in place earlier this year. Without this deal, Pakistan’s exports, particularly textiles and agricultural products, risked facing heavy duties again after July 9, threatening to derail the country’s export growth.

Officials close to the discussions said the latest Pakistan-US trade talks went beyond tariffs, laying the foundation for broader economic cooperation. The agreement is expected to boost US crude oil exports to Pakistan and open new avenues for American investment in Pakistan’s mining, energy, and infrastructure sectors.

The landmark deal could also expand economic ties through the US Export-Import Bank, paving the way for increased bilateral trade and investment.

Although US Treasury Secretary Scott Besant had earlier hinted at the possibility of an extension beyond the July deadline, Pakistani negotiators pushed for a swift resolution to eliminate uncertainty among exporters and investors.

Trade experts are optimistic that this development will ensure continued access for Pakistani goods in the US market, restoring much-needed balance to the bilateral economic relationship. Officials hope this progress will lead to sustained growth in Pakistan’s export sectors and strengthen the broader economic partnership between the two nations.