Aurangzeb heads to Washington for tariff and investment talks

Finance Minister Muhammad Aurangzeb plans to arrive in Washington on Saturday for a three day visit centered on trade, finance and investment discussions, as Pakistan and the United States continue working toward a broader bilateral economic partnership, according to diplomatic sources.

The sources said Aurangzeb will meet with officials from the Office of the United States Trade Representative, the US Export Import Bank, the US International Development Finance Corporation and the International Monetary Fund during his stay.

A central part of the visit will focus on shaping a potential bilateral trade agreement designed to expand trade and investment flows between the two countries. Talks are expected to address tariffs, market access, investment opportunities and broader economic cooperation. Separate meetings with the Export Import Bank and the Development Finance Corporation aim to explore financing options for infrastructure, energy and private sector investment projects.

The trip follows negotiations that began in Washington last week covering tariffs on Pakistani exports and a wider trade framework. Those talks build on months of discussions surrounding a global tariff regime that President Donald Trump announced on April 2, 2025 under the International Emergency Economic Powers Act, which initially set a 29 percent tariff on Pakistani goods entering the United States. A Pakistani delegation that traveled to Washington in July 2025 managed to persuade US officials to lower that proposed tariff from 29 percent to 19 percent.

The tariff situation shifted again after a US Supreme Court ruling earlier this year struck down tariffs imposed under the emergency powers law. In response, the Trump administration invoked Section 122 of the Trade Act to apply a temporary global tariff of 10 percent, a measure set to expire on July 24 once its 150 day statutory window ends.

Pakistan also ranks among nearly 60 countries currently facing investigations by the US Trade Representative under Section 301 over allegations involving forced labor and related trade practices. Islamabad has submitted detailed responses addressing these concerns, including an additional submission this week ahead of the latest round of negotiations. Under the ongoing Section 301 review, Pakistan faces a proposed additional tariff of 10 percent, while India and 53 other nations face proposed tariffs of 12.5 percent. Public hearings before the Trade Representative’s office remain underway.

Beyond the tariff discussions, officials from both countries are expected to explore additional steps to grow bilateral trade and investment ties.

Aurangzeb last traveled to Washington in April to attend the IMF and World Bank Spring Meetings, where he held more than 50 meetings with international financial institutions, investors and credit rating agencies to present Pakistan’s economic reform agenda and its efforts to stabilize the macroeconomic environment. During that trip, he updated investors on Pakistan’s plans to return to international capital markets through Panda Bonds and Eurobonds after a multi year absence. He also met with US Treasury officials and representatives from multilateral institutions to discuss how Pakistan is managing the economic fallout from regional tensions and volatility in global energy markets tied to the conflict involving Iran.

Aurangzeb’s latest visit reflects Islamabad’s continued push to secure more favorable trade terms with Washington at a moment when shifting US tariff policy, ongoing legal challenges and ​ ongoing Section 301 investigations have created uncertainty for exporters. The outcome of this round of talks could shape Pakistan’s trade competitiveness relative to regional peers such as India, particularly as the temporary 10 percent global tariff approaches its expiration date later this month.