The United States Commercial Representative (USTR) has published its annual report on foreign trade barriers, listing Pakistan’s commercial and investment policies, Internet restrictions and corruption, among other issues that interrupt commercial operations.
The OSTR office issued the National Commercial Estimation (NTE) report of 2025 two days before the Trump administration implemented reciprocal tariffs. It is the 40th report of an annual series that highlights the important foreign barriers for US exports, direct foreign investment and electronic commerce.
The day was called “Day of Liberation” by Trump, who signed an executive order that imposed a fixed rate of 10% to almost all nations and then additional tariffs in those countries that the United States accuses of charging higher levies for US goods.
The Trump administration imposed a 29% rate on Pakistani imports, in addition to a 10% reference rate applied to all imports, takes the total rate to Pakistani products to 39%.
In his comments, President Trump said: “Pakistan has been charging us a 58% tariff on our goods. Therefore, we are imposing a 29% rate on their products.”
The USTR report divided commercial barriers into multiple categories, including import policies, technical barriers, service barriers and electronic commerce.
The report mentioned that Pakistan routinely blocks access to Internet services to house content that is considered blasphemous or immoral, or in reasons that such services can be used to “undermine national security.”
“Under the Law of Prevention of Electronic Crimes (PECA), Pakistan routinely blocks social media platforms or requires that the geographical publications of the sites consider illegal online content.”
An electronic security bill and the establishment pending a digital rights protection authority and the National Cyber Research Center would increase financial and criminal sanctions associated with online discourse, he said.
“Pakistan has repeatedly suspended access to mobile data and certain online services in the main cities in response to planned protests, large -scale demonstrations and other perceived disturbances. These suspensions undermine a free and open internet and prevent trade in the digital economy through access to information and services and interruption of commercial operations.
According to the report, American companies have summoned concerns that Pakistan has imposed tariff fees and, in some cases, additional duties, in products such as cars and finished products.
The report also declared that US exporters in Pakistan face a non -uniform customs assessment, excessive documentation requirements and sanctions due to outdated billing rules, adding compliance loads.
“American companies have reported that they are negatively affected by customs 389 and 391. The customs rule 389 requires the placement of a physical invoice and a packing list in the shipping container, while the customs rule 391 imposes the responsibility of including said documents and responsibility for not complying, in the owner of the products and the carrier.
“These rules pose compliance challenges for companies that use intermediaries, reinvote or the storage of goods at various points during traffic,” said the report.
He said that American companies face districtions of currency and bureaucratic obstacles in Pakistan, which makes it difficult for them to repatriate profits and dividends, “generally coinciding with the government’s approach in the views of US dollars outputs.” However, the conditions improved in 2024 “as stabilized the balance of Pakistan payments.”
The report added that American companies have experienced greater pressure from the Federal Income Board (FBR), the Pakistan Tax Collection Authority, to pay in advance the early tax liabilities and “have expressed concern that many of its local competitors do not yet pay taxes or get involved in tax evasion.”
“The United States government has repeatedly committed to the Pakistan government on issues that involve unfair and disproportionate taxes of US companies and continues to reinforce the importance of Pakistan expanding its tax base,” he said.
The report revealed that Pakistan remains in the US Special Surveillance List.
“Although Pakistan has made gradual improvements to better coordinate its IP application efforts and update its IP laws, serious concerns remain, particularly in the IP application area,” he said.
In addition, the report addressed the controversial issue of Pakistan technical barriers in the packaging and labeling of imported food products, particularly vegetable oils. American exporters have faced significant challenges due to strict Halal certification requirements of Pakistan and their 66% useful life rule, which continue to create difficulties and operational difficulties for companies.
In addition, the report declared that US companies also found corruption and a weak judicial system as “substantial disincentives” for foreign investment in Pakistan.
