Ishaq Dar, Marco Rubio vow to 'continue co-operation' as US-Pak ties grow stronger

Amid warming ties between Pakistan and the US, Secretary of State Marco Rubio on Monday (August 4) held a telephonic conversation with Pakistan’s Deputy Prime Minister Ishaq Dar. Islamabad said the two leaders discussed issues of bilateral matters and regional importance.

Pakistan’s ties with Washington have significantly improved after the US President claimed he helped broker the ceasefire between Islamabad and New Delhi following the four-day military conflict in May. However, India has rejected Trump’s claim, stating that the May 10 ceasefire was reached directly upon Pakistan’s request, and there was no intervention from the US.

Pakistan-US trade deal

Pakistan announced last week that it had finalised a “landmark” trade deal with the United States, aimed at reducing tariffs and fostering deeper economic ties.

Alongside this, Trump revealed a separate partnership focused on developing Pakistan’s oil reserves, signalling a new chapter in the economic relationship between the two nations.

The trade agreement was discussed during the Monday call between Ishaq Dar and Rubio. According to the Pakistani foreign ministry, “The two leaders discussed a range of bilateral matters and exchanged views on current regional & international issues.” The statement further noted that “Both sides agreed to remain in contact and continue cooperation on areas of mutual interest.”

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This development marks a notable shift in Pakistan-US relations, which had cooled in recent years following the US withdrawal from Afghanistan.

Analysts view Islamabad’s renewed engagement with Washington as a diplomatic reset, aimed at rebuilding ties after a period of estrangement. High-level exchanges between the two countries had dwindled, but this trade deal and oil partnership indicate a renewed focus on economic cooperation.

The United States remains a critical trade partner for Pakistan, serving as its top export destination. Official data shows that Pakistan’s exports to the US reached $5.44 billion in the fiscal year 2023-2024. From July 2024 to February 2025, exports saw a 10 per cent increase compared to the previous year.

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Pakistan’s government has been actively pursuing stronger trade and economic ties, both regionally and with international allies like the US, as part of its strategy to address a prolonged macroeconomic crisis. The country has faced significant resource constraints, prompting Islamabad to prioritise foreign investment and economic partnerships.