Pakistan’s Finance Minister Muhammad Aurangzeb announced plans to engage the U.S. regarding new tariffs imposed on exports. He stated that the government is not overly worried about the 29% additional tariffs but wants to address the issue. A high-level delegation will soon visit Washington to negotiate trade terms. This visit aims to mitigate potential impacts on Pakistan’s estimated $5.5 billion annual exports to the U.S.
The government is finalizing recommendations that may include lower duties on U.S. goods. Minister Aurangzeb mentioned the importance of minimizing the current U.S. trade surplus of $3 billion. The Prime Minister has also established a steering committee to develop a policy response to these unilateral U.S. actions. This shows Pakistan’s commitment to maintaining strong trade relations with an essential partner.
Additionally, the Finance Minister discussed ongoing negotiations with China regarding a $1 billion commercial loan. The discussions involve refinancing the debt paid last month and issuing Panda bonds. While progress on new loans and rescheduling $3.4 billion guaranteed debt remains pending, the Minister described their talks as productive. By June, he expects foreign exchange reserves to increase to $13 billion.
Furthermore, the Minister confirmed active engagements with the IMF. There will be several missions visiting Pakistan for discussions. He stated that the provinces are taking steps to meet targets, which is promising. Pakistan aims to improve governance as part of its engagement with the IMF. The Minister expressed optimism about exports and remittances, expecting a record $36 billion in remittances this fiscal year.