In a major development, Pakistan has offered a zero-tariff bilateral trade agreement to the United States, according to a media report on Thursday.

Geo News reported the development, quoting government sources.

"Pakistan is offering to enter into a bilateral agreement with zero tariffs on selected tariff lines, with mutual interests, to expand bilateral trade across multiple sectors," a high-level source told the channel when asked about the new policy offered to the US.

The development comes after US President Trump claimed that he brokered a "ceasefire" between Pakistan and India.

He also lauded the leadership of both countries and said he would be doing "a lot of trade" with both.

The nuclear-armed neighbours ended their worst military conflict in nearly three decades after reaching an understanding on May 10 to end the conflict after four days of intense cross-border drone and missile strikes.

Indian government sources in New Delhi have maintained that the Director Generals of Military Operations (DGMOs) of India and Pakistan reached an understanding to stop all firings and military actions on land, air and sea, without the involvement of any third party.

On April 2, Trump announced sweeping reciprocal tariffs on several countries, including India and China. However, on April 9, he announced a 90-day suspension of these tariffs until July 9 this year, except for those on China and Hong Kong, as about 75 countries approached America for trade deals.

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