Pakistan Plans Increased Cotton, Soybean Purchases from US to Lower Trade Surplus

Pakistan is considering increasing its purchases of US cotton and soybeans as part of an effort to halve its trade surplus with the United States and avoid tariffs imposed by President Donald Trump. The country aims to reduce its trade surplus with the US from approximately $4 billion to below $2 billion, with ongoing discussions and the potential for policy changes as talks progress. Pakistan is currently the second-largest buyer of US cotton after China and primarily exports garments and textiles to the American market. There have also been discussions about importing US crude oil to further balance trade, but concerns about high freight costs have prevented consensus within the Pakistani government. Commerce Minister Jam Kamal Khan expressed optimism that negotiations could help reduce high tariff rates, emphasizing the importance of the US market for Pakistan's economy. A high-level delegation is expected to visit the US to negotiate trade terms and discuss the tariffs.