Pakistan is considering giving major tax breaks to leading US tech companies like Google and Meta to finalize a long-awaited trade deal with the Trump administration. According to reports, the Federal Board of Revenue (FBR) has prepared a summary proposing tax exemptions. And which is now awaiting approval from Prime Minister Shehbaz Sharif and the federal cabinet.
The proposed agreement aims to include reciprocal tariff cuts, with the US potentially reducing tariffs to 15–20 percent. This move is expected to significantly boost Pakistan’s exports, helping the country gain a trade advantage over regional competitors such as Bangladesh, India, and Vietnam.
Finance Minister Muhammad Aurangzeb, along with other senior officials, is currently in Washington to negotiate the final terms of the deal. The discussions are set to conclude within the next 48 to 72 hours, just ahead of the August 1 deadline.
If approved, the deal could bring several billion dollars in export growth for Pakistan. Additionally, Islamabad has signaled that these tariff incentives will continue even after the ongoing IMF program ends. This step is seen as a strategic move to strengthen economic ties with the United States, attract more foreign investment. And support Pakistan’s struggling economy.
The decision comes at a critical time as Pakistan faces rising inflation and stiff competition in global markets. Experts believe that offering tax relief to US tech giants could not only unlock the trade deal. And also encourage more American companies to invest in Pakistan’s digital sector, boosting jobs and technological advancement in the country.
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