Islamabad:
Prime Minister Shehbaz Sharif has supported a plan to begin negotiations with the United States by offering lower tariffs and a greater market share, as a report says that the increase in tariffs can grandmother’s Pakistan exports from $ 564 million to $ 2.2 billion.
The Government plans to reduce tariffs on around 55 products remaining within the framework of the World Trade Organization, which would extend the benefits similar to other nations, according to officials who are aware of these discussions.
These low tariffs would be largely in line with tariffs used by China under the Bilateral Free Trade Agreement (FTA), sources told Express PAkGazette. The Government has also prepared the response to non -tariff concerns raised by the prohibition related to the United States of X, restrictions on the repatriation of profits and other similar barriers.
The developments arose on the day in which improved rates in 60 countries and some Pakistani exporters received “arrest requests” from US buyers.
Tabadlab, a group of policy experts, reported in a brief that the 29% increase in tariffs on Pakistani goods will cause around $ 564 million losses in exports to the US. UU. During the first year 2025-26. In addition, he said that in a worse cases unlikely, the loss can increase to $ 2.2 billion.
Prime Minister Shehbaz Sharif presided over a meeting on Wednesday to discuss the rate imposed by the United States in the middle of the commercial war escalation between the United States and China. Beijing on Wednesday took reprisals by imposing additional 34% tariffs on US goods, coinciding with the total of 104% of tariffs imposed that Washington imposed on the second largest economy in the world.
The United States also imposed additional tariffs of 29% on Pakistani goods to reverse the $ 3 billion commercial deficit that it has with Islamabad. Among the concerns of the United States are non -tariff barriers for commercial and online restrictions, even on the social networks platform.
The prime minister was presented with the report of the Steering Committee and the Working Group on the new rates imposed by the United States and the proposed future action course. The meeting was presented with several alternative courses.
The prime minister had last week these committees headed by the Minister of Finance, Muhammad Aurengzeb, and the secretary of Commerce Jawad Paul.
An announcement from the Prime Minister’s office said the Government decided to send a high -level delegation to the US. UU. To promote commercial relations and hold conversations about the United States Tarrifs imposed by the administration of the president of the United States, Donald Trump.
Shehbaz Sharif has commissioned the delegation, which would also include prominent commercial figures and exporters, to resolve a mutually beneficial action course for the future, he read a statement published by the Prime Minister’s office.
The sources said that the government’s plan included the search for the reversal of additional tariffs to facilitate the increase in the import market share of the United States and reduce tariffs.
The options include reducing tariffs in around 55 product lines with great benefits that will be offered in cotton, soy and oil products.
The tariffs on cotton import are already void and the government plans to ensure US authorities for additional imports of basic products, according to sources. In this sense, the prime minister creates another work group on cotton, which will end these proposals.
Some of the contours of the approved plan may need cabinet approval, even the Cabinet Economic Coordination Committee.
Pakistani authorities considered that goods cannot import so that their industries are not competitive, but they still want to find an average group to protect their market share.
The Pakistani Plan includes seeking an investment in the position prior to April 4 or at least demolishing additional tariffs at the levels of their competitors such as Egypt and Türkiye, sources said.
“The commercial relations of the United States and Pakistan cover decades,” said Prime Minister Shehbaz, adding that the Government is eager to even more strengthen its commercial association with the United States.
The meeting was informed that the Pakistani embassy in the United States is in constant contact with the United States government.
Tabadlab Lifts Cortina
The group of politics experts has issued a brief preliminary report on the implications of the United States tariff war against Pakistan’s economy.
He says that estimates suggest that Pakistan’s export loss will amount to around $ 564 million in the next fiscal year under the new US rates, potentially increasing to $ 2.2 billion over time in the worst case. This would negatively affect the current account deficit, undermining recent progress and aggravating the fragile economic growth perspective of the country, he added.
In the worst case, Pakistan can lose market share and domestic demand in the United States is increasingly fulfilled by local producers, he added.
Tabadlab said his initial discussions with exporters indicate that the low benefit margins of the sector make it difficult to absorb higher costs and it is likely that US importers pass these costs to US consumers. This could lead to a reduction in the volume of textile imports to the US.
If Pakistan will lose or get market share in the US.
Pakistan can’t take advantage of
The report says that countries with large markets, solid commercial foundations and significant diplomatic capital can take advantage of opportunities that increase the Trump administration tariff.
“However, Pakistan has historically fought in such scenarios. Without urgent and strategically coherent political actions, this moment could be more risk than an opportunity for the Pakistani economy,” he added.
The imports of Pakistan of the US are of small magnitude and generate limited tariff revenues, only $ 85 million in the last fiscal year.
“For US policy formulators, rates settings alone will not significantly increase exports to Pakistan,” Tabadlab said.
In addition, the United States plays a limited role in the main import categories of Pakistan, which represent only 1.4% of these, well below the 4% participation in all imports, establishes the report.
Pakistan imports a mixture of US products, from low -cost raw cotton and scrap metal to high value pharmaceutical products.
The report says that the US claim of an average tariff rate of 58% in its exports to Pakistan seems inconsistent, even when it counts the para-tarifas, such as regulatory tariffs, sales tax, food and income tax collected in the source, which are not traditional customs duties.
But Tabadlab said Pakistan uses rates for a tool to generate income and “this can represent an area of weakness in negotiations with the United States because other countries may not have similar positions applied to imports in the port.”
Takenly taken, for political leaders, this makes the narration of fair tariffs a more challenging sale, he added.
Non tariff barriers
Non -tariff barriers could arise as a potential friction point in Pakistan US commercial relations, according to Tabadlab. He said that these include the use of legal regulatory orders to administer specific import elements and restrictions on US digital platforms.
Some significant sectors in which the United States currently exports goods, but faces significant tariff protection in Pakistan include vehicles that have 76% rates, furniture 27% of rates, edible fruits and nuts 22% tariffs and 19% paper, according to the report. Any change in this front would require the Pakistan government to change its policy of the sector, he added.
