Pakistan, US inch closer to trade deal

Islamabad and Washington could conclude negotiations over a trade deal as early as next week, Pakistan's Finance Ministry said.

Pakistan's Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick held virtual talks on Tuesday and agreed to conclude the ongoing negotiations by next week, the ministry said in a statement.

It added that a partnership, based on "strategic and investment interests, would be concluded in due course covering areas of mutual interest."

The Trump administration imposed a 29% "reciprocal" tariff on Pakistan in April, which was later suspended for 90 days.

On Thursday, US Secretary of State Marco Rubio spoke with Pakistan Prime Minister Shehbaz Sharif and discussed regional security situation including trade.

Sharif and Rubio "agreed to continue working closely to strengthen Pakistan-US relations particularly through enhanced trade," according to office of the Pakistani premier.

The US is the largest destination for Pakistani goods as the bilateral trade volume stands at around $7.3 billion annually.

US President Donald Trump has time and again said that he got India and Pakistan to agree to a ceasefire in May using trade deals, and has spoken optimistically about the potential for trade agreements with the two countries.

He hosted Pakistan's army chief Field Marshal Asim Munir at the White House last week.