Landmark US-Pakistan Trade Agreement Hailed by PM Shehbaz Sharif

Prime Minister Shehbaz Sharif has extended his “profound thanks” to former US President Donald Trump for his pivotal role in finalizing a landmark trade agreement between Pakistan and the United States. This agreement, described by Sharif as a “historic” moment, marks a significant milestone in the bilateral relationship between the two nations.

Strengthening Bilateral Ties

Taking to the social media platform X (formerly Twitter), Prime Minister Sharif expressed his gratitude, highlighting the deepening cooperation between Pakistan and the United States. “I wish to convey my profound thanks to President Trump for his leadership role in the finalization of the historic US-Pakistan trade agreement,” Sharif wrote. The deal, concluded in Washington, is expected to expand the enduring partnership between the two countries.

Details of the Trade Agreement

The agreement, which was announced by Donald Trump on Truth Social, includes crucial elements such as tariff reductions and enhanced market access for Pakistani goods. One of the most significant aspects of the deal is the framework for joint exploration of oil reserves in Pakistan. Trump emphasized the strategic nature of this partnership, stating, “We have finalized a big trade deal with Pakistan. We will explore oil reserves together with Pakistan.”

The trade agreement was signed following a high-level meeting in Washington, attended by Pakistan’s Finance Minister Senator Muhammad Aurangzeb, US Secretary of Commerce Howard Lutnick, and US Trade Representative Jamieson Greer. This collaboration signals a new era of economic cooperation between the two nations, with potential benefits across various sectors.

Economic Opportunities and Sectoral Growth

According to Pakistan’s Ministry of Finance, the trade deal aims to foster economic cooperation in sectors such as energy, information technology, minerals, and cryptocurrency. Officials are optimistic that the agreement will open up new export channels for Pakistan, buoyed by greater tariff parity and investment opportunities.

A central feature of the pact is the joint development of Pakistan’s oil reserves. Donald Trump indicated that the US is in the process of selecting an international oil company to spearhead the exploration project. This initiative promises full transparency and mutual trust, which are key to the success of such bilateral ventures.

A Strategic Partnership with Long-term Potential

This development in US-Pakistan relations comes amid Trump’s broader aggressive trade policy shifts with other countries. The former US president announced a 25% tariff on imports from India starting August 1, alongside a deadline of August 12 for a potential trade deal with China. These moves highlight the strategic recalibrations in global trade under Trump’s influence, positioning Pakistan as a crucial partner for the United States.

Impact on Pakistan’s Economy

The landmark trade agreement with the United States is anticipated to significantly impact Pakistan’s economy. By providing improved market access and facilitating joint ventures, the deal is expected to stimulate growth in key sectors, attract foreign investment, and create job opportunities. The collaboration in oil exploration, in particular, holds the promise of boosting Pakistan’s energy sector and contributing to economic stability.

The new trade agreement underscores the growing importance of US-Pakistan relations in the global economic landscape. As both nations work towards implementing the terms of the deal, the focus remains on fostering a partnership that is mutually beneficial and strategically advantageous.