As Pakistan engages with the US on the details of a trade deal, one that includes partial tariff relief — reducing rates from 29 per cent to 19pc — and explores deeper commercial ties, including potential higher US imports and investment in key sectors, the private sector has responded with cautious optimism.

The rate reduction signifies a significant reversal of the tariff hike imposed on April 2, 2025, when Washington, under its ‘reciprocal tariffs’ policy, introduced additional duties on over 60 trading partners to address trade imbalances. These tariffs ranged from 10–50pc, with Pakistan initially placed in the higher bracket, alongside other developing states.

Beyond public statements by US President Trump and Pakistani leadership, detailed information about the trade deal remains scarce in the public domain. Key official sources, such as the US Department of Commerce, have yet to release details of the agreement.

The existing Trade and Investment Framework Agreement, signed in 2003, probably continues to serve as the main platform for bilateral discussions. In Pakistan as well, economic ministries have not yet published comprehensive details online.

While tariff relief is a positive development, industry experts caution that it addresses only one facet of Pakistan’s broader trade competitiveness challenges

However, media reports suggest that........

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