WASHINGTON: Pakistan and several South Asian nations are closely tracking the final stages of the US-India trade deal, viewing it as a key indicator of Washington’s future economic engagement with the region. US and Indian officials expect the agreement to conclude by the end of November, paving the way for bilateral trade to reach $500bn by 2030.
Diplomatic sources say Pakistan hopes the deal will prompt the US to expand trade ties with other South Asian countries, ensuring fair and even-handed treatment. These regional expectations are also contributing to delays in issuing a joint US-Pakistan statement on bilateral trade.
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Talks between Islamabad and the US Trade Representative’s office remain ongoing, as both sides work to finalise pending details. Pakistani officials are particularly interested in how they might benefit from tariff concessions tied to goods made with US-sourced raw materials, such as textiles produced with American cotton.
Officials now prefer to wait for the US-India agreement before pushing for any new announcement on US-Pakistan trade. The bilateral deal, agreed in principle in July 2025 and implemented on Aug 7, offers reciprocal tariff reductions for key Pakistani exports, alongside Pakistan’s rollback of its digital services tax.
Pakistan earlier welcomed the US decision to revise its tariff rate to 19pc, down from the 29pc announced in April. Meanwhile, India has faced tariff hikes up to 50pc, imposed over its continued purchase of Russian oil. Think-tanks PIIE and CSIS warn that such reciprocal tariffs could hamper global growth, increase inflation, and unfairly penalise countries dependent on global supply chains.