- The Governor of SBP expects a general positive impact despite American tariffs.
- It says the impact of American tariffs to be “content” in Pakistan, the economy.
- Reservations are expected to reach $ 14 billion for June, says the governor of SBP.
The governor of the State Bank of Pakistan (SBP), Jameel Ahmad, anticipated on Monday that the recent fall in global oil prices would cushion the impact of reciprocal proposals imposed by the president of the United States, Donald Trump, in Pakistan.
Trump announced a 90 -day break about tariffs last week, saying that he made the decision after more than 75 countries had communicated to negotiate and did not retaliate against the United States. Previously, there were 29% tariffs on Pakistani exports to the United States.
Talk about Geographical news “AAJ Shahzeb Khanzada Kay Sorry” program, said SBP governor: “[Pakistan’s] The total export to the US is $ 5.2 billion and of which $ 4.2 billion are textile -related products. “
He argued that American tariffs would obviously affect the textile sector, adding that its impact would be “content.”
The Governor of SPB was the opinion that the impact of the fall in oil prices would be greater than that of American tariffs on Pakistan’s economy. “We expect a general positive impact of US tariffs,” he added.
Ahmad also said that the government and the SBP would support industries if they face a significant impact.
To another question, he said that the balance of Pakistan’s current account will improve in March compared to the previous months. “We are in the process to finish the number. Normally, the 20th of each month ends,” he added.
Referring to the increase in exports and remittances, he said they expected before the current account would be more or less 0.5% of GDP at the end of fiscal year 2015, but now they can say that it would remain surplus.
He said that total remittances for fiscal year 2015 were of around $ 38 billion. Governor SBP also said that currency reserves were expected to reach $ 14 billion in June this year.
Today early, Governor SBP, who reflects on economic progress and the way to sustainable and inclusive economic growth, said Pakistan achieved remarkable progress in the macroeconomic front and the country’s economy is gaining impulse.
He made the comments while heading to the Gong ceremony held here in the Pakistan Stock Exchange (PSX) to celebrate the Pakistan 2025 financial literation week.
He stressed that workers’ remittances reached a high historical level of $ 4.1 billion in March 2025, which partially reflects the result of the government and SBP efforts to encourage the channeling of tickets through formal channels, as well as a soft operation of the national market of FX. He said that total remittances for fiscal year 25 are around $ 38 billion.
The governor shared key initiatives under the National Financial Inclusion Strategy (NFIS) 2024-28, including efforts to increase financial inclusion from 64% to 75% by 2028, while reducing the gender gap in financial services from 34% to 25% by 2028.
‘25% decreases in Pakistan exports to us’
On the other hand, the Institute of Development Economics of Pakistan (asks) warned that the reciprocal rates of 29% imposed by the president of the United States, Donald Trump, can affect Islamabad exports to Washington, resulting in a 20-25% decrease that equals an annual loss of between $ 1.1 billion to $ 1.4 billion, the news reported on Monday.
What can be called as a storm on the commercial horizon of Pakistan, asks has said that the reciprocal rates proposed by the United States could have a devastating impact on the country’s export sector.
In a clear policy note published on April 13, 2025, the Institute warns that these rates could lead to macroeconomic instability, significant employment losses and a critical reduction in currency gains.
The study, conducted by Dr. Muhammad Zeshan, Dr. Shujaat Farooq and Dr. Usman Qadir, analyzes the consequences of a reciprocal tariff proposed of 29% on Pakistani exports to the United States. When added to the existing rate of 8.6% more favored in the nation (MFN), the total duty could reach 37.6%.
The result would probably be a 20–25% decrease in exports to the US, which translates into an annual loss of $ 1.1–1.4 billion, with the textile sector with the worst part of the coup.
“Commerce is not a zero sum game. It is a shared value, of building connections that strengthen both economies. These proposed rates are at risk of cutting those ties,” said Dr. Nadeem Javaid, Vice Chancellor of PIDA, in a solid statement that accompanies a new policy note. “He asks, we see this moment not only as a threat, but as a catalyst, for the correction of the course towards a more resistant, diversified and strategic export future for Pakistan.”
In fiscal year 2024, Pakistan exported goods worth $ 5.3 billion to the United States, which makes it the export market for a single largest country in the country. A significant part of these exports were textiles and clothing, which already face tariffs to 17%.
If the proposed tariffs are implemented, the competitiveness of Pakistan prices would be severely eroded, possibly allowing regional competitors such as India and Bangladesh to capture market share. Economic consequences would extend beyond textiles.
