Pak-US pledge to deepen strategic, economic cooperation: FM Aurangzeb

Federal Finance Minister Muhammad Aurangzeb stated on Tuesday that Pakistan and the United States are advancing efforts to enhance their strategic partnership and emphasised that both nations are aligning on key issues and making progress in the right directionted.

Speaking at an event in Islamabad, the minister described his recent dialogue with US Commerce Secretary Howard Lutnick as encouraging and forward-looking.

Aurangzeb reaffirmed the government's commitment to continuing reform initiatives in areas such as taxation, energy, and trade, according to a report on the state-run Radio Pakistan website.

He noted that recent tariff adjustments are aimed at fostering a more competitive economic environment.

Commenting on pension reforms, the finance minister said the introduction of the Defined Contribution Pension Scheme represents a balanced approach that benefits both the state and government employees.

He added that pensions for retired personnel have been raised by seven percent to reflect current inflation trends. Additionally, a proposal has been made to impose a five percent tax on pensions exceeding ten million rupees, while ensuring that lower- and middle-income retirees remain unaffected.

During a prior virtual meeting with Commerce Secretary Lutnick, both parties agreed to push forward with negotiations on reciprocal tariff arrangements.

The discussions focused on increasing trade and investment ties and strengthening economic collaboration based on mutual interest.

The two sides also consented to continue technical-level talks in the coming days, following a jointly agreed roadmap aimed at finalising a trade agreement.

Read: Trump says Pakistani officials visiting US next week for trade talks

Previously, the federal government decided to initiate talks with the Trump administration regarding the 29% tariff imposed on Pakistani products by the United States, Express News reported.

Sources said that the government has begun formulating a strategy to address the impact of the additional tariff and to explore the possibility of reducing it through discussions with the US authorities.

In this regard, a crucial meeting was held at the Ministry of Commerce under the chairmanship of Federal Minister for Commerce, Jam Kamal Khan.

The meeting, which included over fifty key exporters, importers, and stakeholders, focused on the potential effects of the 29% tariff, particularly on Pakistan's textile exports.

The session analysed how the new US tariffs could negatively impact Pakistan’s textile sector, which forms the largest part of the country’s exports to the US.

Pakistan’s average exports to the US exceed $5.5 billion annually, with textiles accounting for a significant share.

Furthermore, Senator Aurangzeb, reiterated Pakistan’s unwavering commitment to fostering regional economic cooperation at the Shanghai Cooperation Organization (SCO) Finance Ministers and Central Bank Governors meeting in Beijing on Tuesday.

The virtual address highlighted Pakistan's ongoing dedication to advancing economic stability, prosperity, and development within the SCO framework.

Senator Aurangzeb reaffirmed Pakistan’s active role within the SCO, underlining its importance as a vital platform for enhancing economic ties among member states.

Aurangzeb also expressed gratitude to China for hosting the high-level gathering and stressed Pakistan’s support for proposals aimed at boosting joint projects, technology transfer, and capacity-building programs.