Islamabad: Pakistan and the United States are deepening cooperation in energy, mining, and technology sectors, with Islamabad planning an investor conference in Washington later this month to attract American investment, Finance Minister Muhammad Aurangzeb said in an interview with Bloomberg News.
Aurangzeb said the sectors where Pakistan seeks investment are clearly defined and aligned with U.S. interests. 'With respect to the U.S., as of right now, you've just kick-started that process,' he remarked.
Pakistan and the U.S. have moved to rebuild military and economic ties after years of strain. Last week, Prime Minister Shehbaz Sharif and Army Chief General Asim Munir met U.S. President Donald Trump at the White House, where Trump praised both leaders and highlighted Pakistan's role in regional stability.
Trump has also been credited by Pakistani officials with mediating an end to a four-day conflict with India in May - a claim New Delhi denies. Islamabad has since nominated Trump for a Nobel Peace Prize.
Economic links are strengthening, with the U.S. announcing a $500 million investment by U.S. Strategic Metals, while Pakistan promotes American interest in its oil and gas sector. Trump recently spoke of Pakistan's 'massive oil reserves,' despite declining production.
Aurangzeb noted that progress has followed a new trade deal with the U.S., setting a 19% tariff on Pakistani exports - lower than regional peers and significantly below the punitive 50% tariff imposed on India in August. He said the deal boosted Pakistan's export competitiveness and marked an important step toward sustainable economic growth.
Pakistan's economy, which narrowly avoided default in 2023 through IMF assistance, has since stabilized. Aurangzeb said the ongoing $7 billion IMF program review is 'largely on track,' and that Pakistan has successfully repaid a $500 million bond due this week.
SandP Global, Fitch, and Moody's have upgraded Pakistan's credit ratings this year, citing improved fiscal discipline and revenue performance. Investor confidence has risen, with Pakistan's dollar bonds returning nearly 22% and the benchmark stock index gaining 44% this year - among the best in Asia.
Bloomberg Economics estimates Pakistan's GDP growth accelerated to 3.4% in the second quarter, though recent floods and crop damage pose risks to the recovery.