Pakistan is expected to incur a loss of approximately $ 1 billion after the imposition of a 29% rate by the United States on Pakistani goods, according to a report published by the Ministry of Commerce of Pakistan.
Despite this rate, the United States is expected to continue facing a commercial deficit of $ 2 billion with Pakistan.
The document describes the potential impact of the new rate on the commercial relationship between the two countries. He points out that the commercial volume between Pakistan and the US. UU. Reached $ 7.3 billion in the last fiscal year. The United States exported goods worth $ 2.1 billion to Pakistan, reflecting a 4.4% increase compared to the previous year.
On the other hand, Pakistan exports to the US. In 2024 they totaled $ 5.1 billion, marking an increase of 4.9% since 2023. However, the wide commercial imbalance between the two countries is remarkable, with the commercial deficit of the United States with Pakistan that grows by 5.2% to reach $ 3 billion.
The textile and clothing sector continues to be Pakistan’s largest export to the US, representing 55% of total exports. The information technology sector also saw strong growth, with exports to the US. UU. Excessive $ 1 billion in 2024.
The document warns that the 29% tariff significantly affect Pakistan’s textile exports, which potentially makes them more expensive and reduces demand.
In addition, the rate is expected to exacerba the commercial deficit of Pakistan with the USA and can create challenges to find alternative markets for products such as rice and textiles. Pakistan general exports could decrease by 10-15% as a result of the new rate.
In response to these possible challenges, the Ministry of Commerce has emphasized the urgent need for commercial negotiations between Pakistan and the United States to mitigate the negative effects of the rate and work towards a resolution.
