Islamabad: Pakistan has expressed high optimism about finalizing a significant bilateral trade agreement with the United States in the coming days. Foreign Minister Ishaq Dar, speaking at the Atlantic Council in Washington, stated that both nations were “very close” to completing the long-discussed trade framework, signaling that only a few procedural steps remained. However, U.S. officials have not confirmed any specific timeline for concluding the deal, injecting a sense of ambiguity into Pakistan’s enthusiastic announcement.
The proposed agreement, which has been under negotiation for months, is intended to secure favorable terms for Pakistani exports to the U.S., particularly in the textile and agricultural sectors. These sectors were under threat of facing steep tariffs of up to 29%, which would have severely impacted Pakistan’s fragile export economy. Dar emphasized that the government’s trade team, appointed directly by Prime Minister Shehbaz Sharif, has been working diligently to avoid such economic repercussions and ensure a sustainable path forward for Pakistani industries dependent on U.S. market access.
In his Washington remarks, Dar also mentioned that the proposed trade deal includes cooperation in key areas such as critical minerals, clean energy, and broader economic reforms. Pakistan has been pushing for U.S. investment in its underdeveloped mining sector, including the Reko Diq copper-gold project, which could be of strategic interest to American firms seeking access to rare earth and other essential minerals amid global supply chain realignments.
Despite Pakistan’s clear signals of readiness, the United States has maintained a more cautious and non-committal stance. Following bilateral talks between Dar and U.S. Secretary of State Marco Rubio, the American side emphasized the importance of strengthening economic ties and promoting mutual prosperity. However, the State Department refrained from committing to a date or framework for signing the agreement, merely noting that discussions were “ongoing and constructive.”
Beyond trade, Dar used the Washington visit to highlight recent U.S. involvement in South Asian regional diplomacy. He credited former President Donald Trump and Secretary Rubio for their role in helping de-escalate tensions between India and Pakistan following the deadly April 2025 clashes in Kashmir. According to Dar, the U.S. facilitated backchannel negotiations that resulted in a temporary ceasefire. However, India has denied that any such U.S.-led intervention took place, asserting that the situation was managed through direct bilateral mechanisms.
Observers note that this trade agreement, if concluded, could mark a turning point in Pakistan-U.S. relations, which have often been characterized by volatility, suspicion, and transactional cooperation. For Pakistan, the deal promises to stabilize exports and attract foreign direct investment at a time when the country is grappling with economic stress and inflation. For the U.S., it presents an opportunity to regain strategic influence in South Asia, especially as China continues to expand its presence through infrastructure and trade initiatives like the China-Pakistan Economic Corridor (CPEC).
Nevertheless, the absence of a firm commitment from Washington raises questions about the political dynamics behind the scenes. Analysts suggest that internal deliberations within the U.S. administration, combined with electoral considerations and global trade priorities, may be delaying a final decision. Until then, Pakistan’s hopes hinge on diplomacy and patience, while American businesses and policy makers continue to evaluate the terms and potential benefits of the evolving partnership.
As the world watches this critical juncture in Pakistan-U.S. relations, one thing is clear: Islamabad is prepared and eager, but it remains to be seen whether Washington is ready to reciprocate in equal measure.