With one week left to the July 9 tariff deadline, Pakistan and the United States appear to have reached the final stage of critical trade discussions that have the potential to determine the future of the vital export sectors of Pakistan.
A Pakistani delegation headed by Commerce Secretary Jawad Paal reached Washington this week to push a long-term reciprocal tariff accord.
The aim is to prevent the revival of a 29-per-cent US duty on Pakistani exports, which consist of mainly textiles and agricultural goods.
The tariff relief that has previously been put on hold this year is now left to rely on the negotiations that are currently being held.
US Treasury Secretary Scott Bessent has hinted that Washington may extend the July 9 deadline to Labour Day if it sees clear signs of progress in the negotiations.
But the Pakistani authorities have reported that they are going to conclude the deal this week to remove ambiguity among the exporters and investors.
The specified trade model involves the enhancement of the Pakistani imports of the US products, namely, the crude oil, along with the American investment in the extraction industry, the Pakistani infrastructure, and national energy.
Among the most significant under discussion, one may note the project of the Reko Diq copper-gold mine and associated energy infrastructure. The agreement shall also help to increase bilateral interaction via US Export-Import Bank.
The Pakistani negotiators are still hopeful that they can reach to some settlement this week so that they have larger and stable access to the US market.
