Pakistan secured a major tariff relief deal with the United States just ahead of schedule.
In a major diplomatic and economic breakthrough, Pakistan has successfully secured a significant tariff relief deal with the United States just hours before an upcoming deadline, ensuring the continuity of key exports to American markets.
Deal finalized late Monday night after intensive negotiations in Washington, exempts tariffs on a wide range of Pakistani goods, including textiles, surgical instruments and leather products. These sectors represent billions of dollars in annual exports and thousands of jobs across Pakistan.
Government officials called the deal a “game changer” for Pakistan’s trade future. Commerce Minister Jam Kamal Khan said that we have protected our export industries and achieved long-term economic stability. “This is a testament to our strong bilateral relationship and mutual economic interests.
The deal comes at a critical time when Pakistan is facing increasing pressure to strengthen its foreign exchange reserves and boost export revenues. The tariff relaxation is expected to increase Pakistan’s global competitiveness and attract more foreign investment.
In Washington, the Office of the US Trade Representative noted that the agreement supports US interests by maintaining reliable supply chains and strengthening regional partnerships.
Analysts say the deal could help Pakistan restore confidence in global markets, especially after recent IMF engagements and economic restructuring efforts.
Pakistan was previously at risk of losing preferential access to US markets under a review of Generalized System of Preferences (GSP) benefits. This last-minute arrangement ensures continuity and opens the door to possible future negotiations under a more comprehensive trade framework.
Officials from both countries confirmed the establishment of a joint monitoring committee to monitor the implementation and compliance of the agreement. The first review meeting is scheduled for October 2025.
For Pakistan’s business community, this news brings much-needed relief and hope. Exporters are already preparing to increase production as order confidence returns.