In a major blow to the Pakistani economy, the United States imposed a 29 % tariff on Pakistani goods, which is expected to lead to a billion dollars loss to the country. As the Ministry of Commerce stated.
Despite this setback, the United States is expected to continue facing a billion dollar trade deficit with Pakistan, which confirms the dynamics of complex trade between the two countries.
The total trade volume between Pakistan and the United States reached $ 7.3 billion in the past fiscal year.
While the United States exported the goods worth $ 2.1 billion to Pakistan – which represents an increase of 4.4 % – Pakistan’s exports to the United States increased to $ 5.1 billion, an increase of 4.9 %.
However, this may only depth the trade defect, with the growth of deficit in the United States with Pakistan growth by 5.2 % to 3 billion dollars.
The export sectors in Pakistan, especially textiles and clothes, which constitute 55 % of exports to the United States, are facing serious challenges.
The tariff threatens to raise prices and reduce demand, which may harm the largest category of export in the country.
The information technology sector, which also shows strong growth with exports exceeding one billion dollars, may not be immune to wavy effects.
The effect of customs tariffs can lead to a total decrease in exports by 10-15 %, adding pressure to the already fragile economic situation in Pakistan.
In response, the Ministry of Commerce stressed the insistence of trade talks with the United States to reduce damage and search for adjustments to the tariff that can benefit both economists.
While the situation is still liquid, Pakistan is about to engage in strategic negotiations to protect its commercial interests and reshape the future of US -Pakistani economic relations.
