Pakistan and US officials are engaged in discussions to finalise the details of a trade deal that includes investments, following the establishment of the lowest tariff rate among major South Asian nations, as reported by Bloomberg on Monday.

Pakistan’s revised tariff rate stands at 19%, lower than that of several regional competitors, including India (25%), Bangladesh (20%), Vietnam (20%), and Sri Lanka (20%).

In an interview with Bloomberg TV, Bilal Azhar Kayani stated that Prime Minister Shehbaz Sharif’s government aims to negotiate better tariffs on specific exports during the ongoing talks with the US. “The agreement with more details will be negotiated and discussed in the months ahead,” Kayani noted.

Last month, Pakistan reached a trade agreement featuring a 19% tariff, significantly reduced from the initially proposed 29%, as part of a new executive order signed by President Donald Trump.

Relations between the two nations have improved recently, highlighted by Trump’s invitation to Pakistan’s Chief of Army Staff, Asim Munir, for talks at the White House during his second visit to the US in a few months.

During the announcement of the trade deal, Trump indicated that the US will collaborate with Pakistan on developing its substantial oil reserves and is in the process of selecting an oil company to lead the partnership.

The trade deal was announced on the same day Trump launched a significant tariff assault on India, threatening tariffs of up to 50% unless India ceases its purchases of Russian oil and weapons.

Trump has also indicated potential higher tariffs on Russia and secondary sanctions on its allies if Russian President Vladimir Putin does not move to end the conflict in Ukraine.

Additionally, he expressed discontent with India’s involvement in the “anti-US” BRICS grouping amid reports that Indian Prime Minister Narendra Modi will visit China for the first time in over seven years later this month.

In discussing the oil reserves, Trump remarked that Pakistan “may be selling oil to India one day.”