The breakthrough was reached during a meeting of Federal Finance Minister Senator Muhammad Aurangzeb with US Secretary of Commerce Howard Lutnick and United States Trade Representative Ambassador Jamieson Greer in Washington, D.C.

Commerce Secretary Jawad Paul and Pakistan Ambassador to the US Rizwan Saeed Sheikh were also present during the meeting, said a press release issued by the finance ministry in Islamabad, adding that President Trump announced the trade deal via a post on Truth Social.

The agreement will result in a reduction of reciprocal tariffs, especially on Pakistani exports to the United States, it added.

This deal marks the beginning of a new era of economic collaboration, especially in energy, mines and minerals, IT, cryptocurrency and other sectors.

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The deal complements Pakistan’s existing efforts to broaden the scope of Pak-US economic ties and to include partnerships at the US state level.

The agreement enhances Pakistan’s access to the US market and vice versa.

Additionally, the deal is expected to spur increased US investment in Pakistan’s infrastructure and development projects.

This trade agreement underscores the commitment of both nations to deepen their bilateral relationship and explore all avenues for strengthening trade and investment ties.

“Trade and investment have to go hand in hand, and today we see the emergence of a broader economic, bilateral, and strategic partnership,” said Finance Minister Muhammad Aurangzeb while commenting on the successful conclusion of a comprehensive trade agreement between Pakistan and the United States.

The negotiations, which addressed key concerns including tariffs, non-tariff barriers, and trade imbalances, were hailed as a joint success by both sides.

Aurangzeb emphasised the critical role played by Pakistan’s private sector, noting that business leaders were among the first to step up and offer support in correcting trade disparities.

“This has truly been a team effort,” he said, thanking the leadership of Pakistan, fellow cabinet members, the commerce secretary and his team, and the embassy staff led by Ambassador Usman Sheikh.

“No single individual could have delivered and taken us through the finishing line.”

The agreement sets the stage for increased cooperation in sectors including energy, minerals and mining, IT, and digital infrastructure — pillars of what Aurangzeb termed “the new economy”.

“President Trump’s message is clear: this is going to be a real win-win situation for both Pakistan and the United States,” the finance minister affirmed.

Reflecting on the progress made ahead of August 1, Aurangzeb said: “Alhamdulillah, we are in a good place today. We have come a long way in strengthening our strategic partnership, and I believe it will continue to grow from strength to strength.”

The trade deal is expected to unlock new avenues of economic collaboration, marking a significant shift in bilateral relations between the two nations.