Finance Minister Muhammad Aurangzeb on Tuesday said that Pakistan and the United States are actively working to deepen their strategic and economic relationship, highlighting growing alignment on key issues and encouraging progress in bilateral cooperation.
Speaking at an event in Islamabad, Aurangzeb described his recent discussions with US Commerce Secretary Howard Lutnick as “positive and forward-looking.” He reaffirmed Pakistan’s commitment to ongoing reforms in taxation, energy, and trade, which are designed to foster a more competitive and sustainable economic environment, according to state-run Radio Pakistan.
The minister pointed to recent tariff adjustments as part of efforts to stimulate economic growth and ensure global competitiveness.
On pension reforms, Aurangzeb said the introduction of the new Defined Contribution Pension Scheme aims to balance the interests of both the government and its employees. He noted that pensions have been increased by 7% to keep pace with inflation. A new proposal suggests imposing a 5% tax on pensions exceeding Rs10 million annually, while protecting lower- and middle-income pensioners.
During his earlier virtual meeting with Secretary Lutnick, both sides agreed to accelerate talks on reciprocal tariff arrangements. The discussions also focused on expanding trade, investment, and economic collaboration under a shared roadmap intended to conclude a trade agreement.
Meanwhile, the federal government is formulating a strategy to address the 29% tariff imposed by the US on Pakistani goods. According to Express News, the Ministry of Commerce recently held a high-level meeting chaired by Minister Jam Kamal Khan, bringing together over 50 stakeholders, including top exporters and importers.
Participants reviewed the potential impact of the US tariffs on Pakistan’s key export sectors, especially textiles, which represent the largest portion of the country’s annual $5.5 billion exports to the US.
In a separate engagement, Finance Minister Aurangzeb reiterated Pakistan’s commitment to promoting regional economic integration during a virtual address at the SCO Finance Ministers and Central Bank Governors meeting held in Beijing.
He underscored Pakistan’s active role in advancing economic cooperation within the Shanghai Cooperation Organization (SCO) and thanked China for hosting the event. Aurangzeb voiced support for initiatives aimed at expanding joint ventures, facilitating technology transfer, and launching capacity-building programs across the SCO region.
