Pakistan and the United States on Wednesday pledged to swiftly finalise the proposed reciprocal trade framework, welcoming the significant progress made during ongoing negotiations. The development emerged during Finance Minister Muhammad Aurangzeb's virtual meeting with US Trade Representative Ambassador Jamieson Greer to review progress on ongoing negotiations aimed at strengthening bilateral trade and economic cooperation, the finance ministry said in a statement.

Islamabad and Washington had reached a trade agreement in July last year ahead of President Donald Trump's August 1 deadline that resulted in the imposition of higher tariffs against various countries on a reciprocal basis. Following negotiations between Pakistani officials and the Office of the United States Trade Representative (USTR), Washington agreed to lower the proposed reciprocal tariff on Pakistani exports from 29% to 19%.

However, the arrangement was disrupted in February when the US Supreme Court ruled 6-3 that the White House had overstepped its constitutional authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA), effectively nullifying the policy. The Trump administration later relied on Section 122 of the Trade Act of 1974 to introduce a temporary 10% global tariff for up to 150 days.

During today's meeting, the finance minister welcomed "the steady progress made by the respective negotiating teams" and appreciated the constructive engagement over time. FinMin Aurangzeb highlighted the importance of maintaining the momentum of negotiations in view of Pakistan's economic priorities.