Deputy Prime Minister and Foreign Minister Ishaq Dar has expressed confidence that Pakistan and the United States can increase bilateral trade in goods to $20 billion within the next five years. Dar said Pakistan’s trade in goods with the US stood at $9.4 billion during the last fiscal year. He described the US as Pakistan’s largest single-country export market. Addressing a US Congressional Delegation and American business representatives, Dar said stronger trade and investment ties could create new opportunities for companies in both countries. He said closer economic cooperation could also generate employment, encourage innovation and support long-term economic growth. Dar highlighted several areas where Pakistan and the US could expand commercial cooperation. These include information technology, artificial intelligence, energy, manufacturing, agriculture and critical minerals. He said Pakistan is already an important buyer of American cotton and soybeans. The country is also becoming a growing market for US hydrocarbons. At the same time, Pakistan’s increasing demand for advanced machinery, technology and capital goods could create opportunities for American manufacturers, he added. Dar said the presence of more than 80 US companies in Pakistan demonstrated growing confidence in the country’s market and economic potential. He welcomed the interest shown by American companies in Pakistan’s technology, energy, critical minerals and defence sectors. The foreign minister also pointed to the US Exim Bank’s $1.25 billion financing for the Reko Diq project as an indication of increasing US confidence in Pakistan’s investment prospects. Dar encouraged American businesses to establish partnerships with Pakistani companies and explore long-term investment opportunities. He said Pakistan had improved its infrastructure over the past decade through modern highways, ports and logistics networks. These developments, he added, had strengthened the country’s position as a potential trade and investment gateway. The government is also working to make the business environment more investor-friendly. Dar said regulatory procedures had been simplified to reduce bureaucratic delays and make licensing and approvals easier. He said Pakistan wanted to deepen cooperation with the US across both goods and services. Technology, AI, energy, manufacturing, critical minerals and agriculture were among the sectors identified for greater collaboration. Dar also highlighted the broader improvement in Pakistan-US relations. He said frequent high-level contacts under Prime Minister Shehbaz Sharif and US President Donald Trump had helped strengthen bilateral engagement. He said his meetings with US Secretary of State Marco Rubio had also focused on strengthening relations and discussing regional developments. The foreign minister stressed that parliamentary engagement was equally important. He said regular interaction between lawmakers could improve mutual understanding and strengthen institutional ties. Dar said Pakistan’s engagement with the US Congress had increased significantly over the past year. The interaction has included lawmakers from both political parties and key congressional committees. The two countries also discussed regional security and stability. Dar said stronger Pakistan-US relations could contribute to peace and stability in the wider region. He also recalled Pakistan’s role in facilitating dialogue between the US and Iran. Dar said Islamabad remained committed to dialogue, diplomacy and peaceful solutions to regional disputes. The foreign minister separately received a US congressional delegation comprising Representatives Ryan Zinke and Michael James Baumgartner. During the meeting, both sides discussed ways to expand cooperation in trade, investment, IT, energy and other areas. The US lawmakers acknowledged the contribution of the Pakistani community to American society and economy. They described the diaspora as an important link between the two countries.

Prime Minister Shehbaz Sharif is expected to address key issues facing Pakistan’s refinery sector today. The Cabinet Committee on Energy (CCoE) will review proposed changes to the Brownfield Refinery Policy.The policy was approved in 2023. It aims to encourage investment in the modernisation of existing refineries. The proposed changes could affect billions of dollars in planned refinery investments.The main dispute is over deemed duty protection. The government has proposed reducing it from 7.5 per cent to 5 per cent. Refinery companies have opposed the proposed cut. They say it could weaken the financial benefits offered under the policy.The industry also disputes the government’s position on delays in signing Upgrade Agreements. Officials say refineries failed to sign the agreements within the required period.Refinery representatives reject the claim. They say they had already accepted the draft agreements in 2024. According to industry officials, the companies were waiting for the government to arrange the formal signing process.They say the industry repeatedly contacted the Petroleum Division and other authorities to complete the process. The companies argue that the delay was caused by administrative issues on the government side.They therefore believe the incentives should not be reduced because of delays beyond their control. Deemed duty protection is a key part of the refinery upgrade package.The incentive is designed to encourage companies to invest in modernisation. The planned upgrades are aimed at increasing production of Euro-V compliant fuels.They are also expected to reduce furnace oil production. The projects could help improve Pakistan’s overall fuel mix.The refining sector has also faced additional financial pressure from changes in the tax system. The Finance Act 2024 moved several petroleum products from the zero-rated sales tax regime to the exempt category.The change affected the ability of refineries to adjust input sales tax. It also increased their unrecoverable tax costs.The Petroleum Division has acknowledged that the tax changes affected the financial viability of refinery upgrade projects. Officials said the prime minister is expected to review the major issues that have delayed the implementation of the policy since August 2023.The Petroleum Division has proposed limited amendments to make the policy operational. It has also recommended a committee to finalise the Upgrade Agreement.The committee would include senior officials from the Petroleum Division, Law Division and OGRA. A representative of the Special Investment Facilitation Council would also be included.OGRA, however, has reservations about signing the agreements. OGRA Chairman Masroor Khan has argued that the regulator should focus on its regulatory role.He believes OGRA should not become a party to commercial agreements. The refinery industry is now hoping for a decision that removes the remaining hurdles.Companies want the government to maintain the existing incentive structure. They say policy consistency is important for attracting investment.They also warn that changes to agreed incentives could discourage investors. A clear decision by the CCoE could help restart delayed refinery upgrade projects.The decision could also influence Pakistan’s fuel supply and long-term energy security.