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The Federal Board of Revenue (FBR) has submitted a summary proposing tax exemptions for American tech companies, including Google and Meta, as Pakistan seeks to finalize a trade deal with the Trump administration before the deadline.
The summary is currently awaiting approval from Prime Minister (PM) Shehbaz Sharif and the federal cabinet, according to media reports.
If approved, it could mark a major shift in Pakistan’s trade and digital policy by opening doors for more US-based tech investment.
The proposed agreement includes reciprocal tariff reductions. Reports suggest the United States may cut its tariffs to 15 – 20 percent, offering Pakistan significant trade relief.
Finance Minister Muhammad Aurangzeb and top officials are already in Washington to negotiate the final terms within the next 48 to 72 hours.
Officials hope the deal will boost Pakistan’s exports by several billion dollars annually, giving the country a competitive edge over regional rivals such as Bangladesh, India, and Vietnam.
Islamabad is also expected to commit that the tariff incentives offered under the agreement will continue beyond the current IMF program.
Earlier in the day, US President Donald Trump declared that the United States will impose a 25 percent tariff on all goods imported from India, starting from August 1, 2025.
In a post on Truth Social, Trump accused India of maintaining excessively high tariffs and harsh trade barriers.
He stated that the US has done “relatively little business” with India due to these practices, despite the two countries being allies.
Trump criticized India’s trade policies, calling them “strenuous and obnoxious,” and also highlighted New Delhi’s close energy and defense ties with Russia, which he claimed undermine global efforts to halt the war in Ukraine.
“India has always bought a vast majority of its military equipment from Russia and is Russia’s largest energy buyer, along with China — ALL THINGS NOT GOOD!” Trump wrote.
