Finance Minister Muhammad Aurangzeb said on Saturday that he will travel to the United States next week to deepen economic engagement, as Pakistan reassesses its trade position following recent developments involving Washington, New Delhi and Dhaka that have caused concern among local industries.
Speaking at the Economic Growth and Stability programme held at the Federation of Pakistan Chambers of Commerce and Industry regional office in Lahore, the minister said the visit would focus on improving trade negotiations and exploring ways to strengthen Pakistan’s access to the US market. He encouraged industrialists to review their revenue models and improve productivity, saying the global economy is changing rapidly and Pakistan must adapt.
The United States remains Pakistan’s largest single country export destination, accounting for about 18 percent of total exports, or nearly $5.8 billion, during fiscal year 2024-25. Textiles and garments make up around 82 percent of exports to the US, highlighting Pakistan’s strong dependence on stable trade ties with the American market.
In recent days, the textile sector has asked the government to secure better trade arrangements with the US. The Pakistan Textile Council wrote to Prime Minister Shehbaz Sharif, while the All Pakistan Textile Mills Association also approached Commerce Minister Jam Kamal Khan with similar requests.
Aurangzeb said Pakistan continues to engage with the International Monetary Fund as balance of payments pressure remains a major constraint on growth. He stressed that the country must move towards export led growth and said economic stability has been achieved through difficult steps.
The finance minister also expressed hope that interest rates may fall further if inflation continues to ease, though he noted that the final decision rests with the State Bank of Pakistan. He added that industrial activity has improved after earlier policy rate cuts.
He said Pakistan recently repaid a $500 million Eurobond and is ready to meet another $1.3 billion payment due in April.
Aurangzeb also described climate change and population growth as serious long term challenges. He suggested reviewing the National Finance Commission formula, which largely distributes resources based on population, and said reforms would be pursued in consultation with provinces while seeking support from industry.
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