Pakistan’s Finance Minister Muhammad Aurangzeb in US to push for trade deal

Muhammad Aurangzeb

Pakistan’s Finance Minister Muhammad Aurangzeb is in the US to negotiate Washington’s demands as part of trade talks ahead of an August deadline, according to people familiar with the matter.

Aurangzeb’s visit comes after an earlier Pakistani delegation was given an exhaustive list of demands from the US to cut the country’s tariff and non-tariff barriers as conditions for a trade deal, according to two people familiar with the matter who asked not to be identified because they are not authorized to speak on the matter. Pakistan earlier expected to wrap up a deal by early July, but the talks are taking longer than expected.

Aurangzeb did not respond to a text message seeking further information.

Relations between Islamabad and Washington are showing signs of improvement in recent months after a prolonged diplomatic chill. Last month, US President Donald Trump welcomed Pakistan’s army chief, Asim Munir, for rare talks at the White House that was followed by Pakistan recommending Trump for a Nobel Peace Prize.

Pakistan, which is warming up to the crypto industry, also signed a letter of intent with Trump family’s World Liberty Financial in April to accelerate blockchain adoption in the country.

Since Munir’s visit, trade negotiations have made “encouraging headway,” the finance ministry said in a statement earlier this week. Pakistan has a relatively small trade deficit of $3 billion with the US compared with many other nations. Pakistan is trying to appease the US to seek reprieve from the 29% reciprocal tariffs initially imposed by Trump.

The South Asian nation, already the second-largest buyer of US cotton by value after China, has offered to boost imports of American cotton and soybeans. The US is the largest export market for Pakistan.