Pakistan has proposed a zero-tariff bilateral trade agreement with the United States to boost trade volume and improve market access in key sectors.
According to credible sources, the proposal involves removing tariffs on selected goods, potentially increasing Pakistan’s exports to the US market. This move is part of wider efforts to strengthen economic ties between the two countries amid easing tensions between Pakistan and India.
Read more: India Offers US Tariff-Free Trade Deal Amid Negotiations
The proposal reportedly followed diplomatic efforts by US President Donald Trump, which helped de-escalate hostilities between Islamabad and New Delhi. The recent ceasefire has created an opportunity to revive trade discussions between Pakistan and the United States.
“A zero-tariff trade deal would provide enhanced market access for Pakistan across various sectors and promote economic stability and regional growth for both nations,” said a senior official familiar with the talks.
Earlier, President Trump noted that India had offered the US a trade deal with no tariffs during a meeting with business leaders in Doha. India is currently negotiating a trade agreement with the US within the 90-day tariff pause announced on April 9, which temporarily halted planned tariff hikes including a 26% tariff on Indian goods.
“It’s very difficult to sell products in India, but they are now offering us a deal with virtually no tariffs,” Trump remarked.
The United States is India’s largest trading partner, with bilateral trade reaching approximately $129 billion in 2024. India currently enjoys a trade surplus of $45.7 billion with the US.
Meanwhile, Pakistan and India’s Directors General of Military Operations (DGMOs) held their third hotline conversation on Wednesday as part of ongoing efforts to reduce cross-border tensions.
Both sides agreed on practical measures to restore mutual trust and uphold the ceasefire agreement, according to sources.
The telephonic talks reaffirmed commitments to maintain peace along the Line of Control (LoC) and adhere to the existing ceasefire.
Deputy Prime Minister and Foreign Minister Ishaq Dar confirmed in the Senate on Thursday that the ceasefire will remain in effect until at least May 18.
