A new trade agreement between the US and Pakistan was announced on July 31, 2025. Pakistan's Finance Ministry states the agreement aims to boost trade, expand market access, attract investment, and foster cooperation in areas of mutual interest. This includes a reduction in reciprocal tariffs, particularly benefiting Pakistani exports to the US, according to FastBull. The deal also involves US participation in developing Pakistan's oil reserves. Total US trade with Pakistan reached an estimated $7.3 billion in 2024. US Tariff on Pakistan moved to 19%.
AI outlook
AI policy and ambition: Pakistan recently approved its National AI Policy 2025, which aims to create a robust national AI ecosystem. The policy focuses on training 1 million AI professionals by 2030, launching 50,000 AI-powered civic projects, and developing 1,000 local AI products over five years. Prime Minister Shehbaz Sharif stressed the importance of equipping youth with AI skills.
Potential economic impact: AI is seen as a catalyst for economic modernization and could boost Pakistan's GDP by as much as 12% by 2030, unlocking a $2.7 billion market through AI-driven innovation in various sectors, including agriculture, tax administration, and public services.
Opportunities for collaboration: Investment: The new trade deal is expected to increase US investment in Pakistan, potentially including in the AI sector, says ABC News. The AI policy establishes an Innovation Fund and Venture Fund to encourage private sector involvement.
Education & Training: The US could play a role in supporting Pakistan's efforts to train its youth in AI, potentially through partnerships with US tech institutions or companies.
AI Adoption & Infrastructure: Collaboration could extend to expanding access to AI tools, improving public services through AI, and investing in crucial AI infrastructure across sectors.
Specific Areas: Potential areas for collaboration mentioned include AI in trade, IT, cryptocurrency, and blockchain technology. The combination of the recent trade agreement and Pakistan's strong focus on developing its AI capabilities presents a positive outlook for future US-Pakistan trade relations, with AI likely playing a growing role in economic cooperation and development.
US trade
deal with Pakistan ai outlook
US-Pakistan trade relations recently saw a significant development with the signing of a trade agreement aimed at fostering cooperation in areas like energy development, trade facilitation, and technology.
Here's an overview of the AI outlook within this trade deal context:
Expanded cooperation in IT and digital sectors: The agreement explicitly mentions the expansion of ties in Information Technology (IT) and other digital sectors as areas of mutual interest. This creates a pathway for stronger collaboration in areas where Artificial Intelligence (AI) can play a significant role.
Focus on economic modernization and technology partnerships: The deal aligns with Pakistan's economic modernization goals, including the development of advanced IT infrastructure and fostering technology partnerships with the US.
Growing Pakistan's tech industry and IT exports: The agreement is expected to support Pakistan's growing tech industry, with a focus on increasing IT exports. Pakistan has already surpassed $3 billion in IT exports, according to Outsource Accelerator. This indicates a favorable environment for potentially incorporating AI-driven solutions to further enhance these exports.
Investment pledges and initiatives: A recent Pakistan-U.S. Tech Investment Conference saw an initial commitment of over $20 million from American companies led by Pakistani-American entrepreneurs, with a focus on emerging sectors like AI, fintech, health tech, and software development.
AI Outlook and challenges
Potential for AI-powered solutions in various sectors: AI can play a role in developing Pakistan's energy infrastructure and improving efficiency in sectors like agriculture and manufacturing, key areas the trade deal aims to bolster.
Need for skilled AI professionals and infrastructure development: To fully realize the benefits of AI, Pakistan will need to address challenges related to developing a skilled AI workforce and investing in the necessary infrastructure for AI research and development.
Government initiatives to foster AI growth: Pakistan's government is actively pursuing the development of an AI ecosystem, as evidenced by its goal to train 1 million AI professionals by 2030 and launch 50,000 civic projects and 1,000 local AI products, according to Xinhua.
Focus on ethical AI development and data security: The importance of data privacy, national security, and responsible innovation in AI development is also being emphasized.
In conclusion, the recent trade agreement between the US and Pakistan, alongside Pakistan's growing tech sector and governmental support for AI development, creates a promising outlook for AI-related collaborations. However, addressing challenges related to human capital development and infrastructure investment will be crucial for fully harnessing the potential of AI within this evolving partnership
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In 2025 Pakistan’s nominal GDP is projected to be $411.8 billion. Nominal Per capita GDP is $1,797. Population is 255.2 million. In fiscal year 2024-2025, Pakistan's exports reached $32.1 billion, while imports were $58.38 billion, resulting in a trade deficit of $26.27 billion, Key import commodities included petroleum crude, electrical machinery, petroleum products, palm oil, and iron and steel. In 2025, Pakistan's key export goods include textiles (knitwear, readymade garments, bed wear, cotton cloth), rice, and other items like towels, surgical instruments, and sports goods. Pakistan's key trading partners in 2025 include the United States, China, the United Arab Emirates, the United Kingdom, and Saudi Arabia.
As of August 1, 2025, trade between Pakistan and the United States has seen shifts, particularly with a recent agreement impacting tariffs and oil trade.
Imports from
the US to Pakistan
· Value: In May 2025, Pakistan
imported $233 million from the United States, a significant increase (66.3%)
from May 2024.
· Key products: The main US exports
to Pakistan in May 2025 were raw cotton ($85.1M), scrap iron ($24.2M), and
aircraft parts ($23.8M).
· Growth drivers: The increase in US
exports was primarily driven by increases in exports of raw cotton, aircraft
parts, and soybeans.
· Oil imports: A significant
development in July 2025 is Pakistan's agreement to purchase crude oil from the
US for the first time. Pakistan's largest oil refiner, Cnergyico, will import 1
million barrels of West Texas Intermediate (WTI) light crude in October 2025.
This is a strategic move for Pakistan to diversify its energy sources and
reduce dependence on Middle Eastern suppliers.
· Overall oil imports: Oil is
Pakistan's largest import, valued at $11.3 billion for the fiscal year ending
June 30, 2025, accounting for nearly one-fifth of the nation's total imports.
· Tariffs: Pakistan has secured a reduction in tariffs on its imports from the US, with a new tariff rate of 19% implemented as of August 1, 2025, according to The Express Tribune. This is down from a previously threatened 29% tariff.
Exports from
Pakistan to the US
· Value: In May 2025, the
United States imported $477 million from Pakistan, a 19.5% increase from May
2024.
· Key products: The main US imports
from Pakistan were house linens ($95M), non-knit women's suits ($47.8M), and
non-knit men's suits ($34M).
· Growth drivers: The rise in US
imports from Pakistan was mainly attributed to increases in imports of non-knit
women's suits, house linens, and knit socks and hosiery.
Trade
balance
· In May 2025, the US had a trade deficit
of $245 million with Pakistan.
Overall
trends
· Total US trade with Pakistan was
estimated at $7.3 billion in 2024, with US exports to Pakistan at $2.1 billion
and imports from Pakistan at $5.1 billion.
· Both nations have reached a trade
agreement that is expected to facilitate US investment in developing Pakistan's
oil reserves.
· The trade agreement aims to boost bilateral trade, expand market access, attract investment, and foster cooperation in areas of mutual interest.
https://www.google.com/search?q=pakistan+imports+and+exports+with+the+us++2025
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