Tariff war on global financial markets: LCCI urges govt to take steps aimed at insulating economy against external shocks

LAHORE: The Lahore Chamber of Commerce and Industry has expressed serious concern over the impact of tariff war on global financial markets and called upon the government to adopt immediate and strategic measures to protect the national economy from external shocks.

In a statement, LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry said that the tariff-driven trade tensions have rattled stock markets around the world, with ripple effects reaching even the strong economies. This is no longer a bilateral issue; it has evolved into a global economic crisis.

They said that the Pakistan Stock Exchange witnessed a sharp decline of 3,882 points, indicating investor panic and a lack of confidence amid global uncertainty. Similarly, the Saudi stock market suffered a record loss of 500 billion riyals, further illustrating the gravity of the situation.

The LCCI office-bearers this volatile scenario, Pakistan has initiated its first high-level contact with the Trump administration, which, according to LCCI leadership, must be capitalized upon to pursue trade concessions and economic cooperation.

They urged the government to introduce a financial relief package for the capital markets to restore investor confidence and curb volatility. The Securities and Exchange Commission of Pakistan (SECP) and Ministry of Finance must ensure stronger market oversight, transparency and rapid policy response to shifting global trends.

They added that Pakistan should proactively use the new diplomatic opening to seek preferential trade access to US markets, explore avenues for joint investment and technology transfer and push for inclusion in US Generalized System of Preferences (GSP) programmes.

The LCCI office-bearers said that the government should accelerate Regional Economic Integration, expedite CPEC-related infrastructure and trade development, expand trade agreements with Turkey, Iran, Central Asia and ASEAN countries.

They suggested that the government should introduce tax relief, subsidies and policy reforms to shield domestic industries from global economic shocks and keep production lines running.

They also recommended launching awareness campaigns and training sessions for SMEs and traders to better navigate complex market scenarios.

They said that a high-level body of experts, including representatives from chambers of commerce, economists and diplomats, should be established to monitor international developments and guide strategic responses.

The LCCI president said that while Pakistan cannot remain immune to global economic shifts, it must act decisively and with foresight.

“The current global scenario is a wake-up call. We must insulate our economy, diversify our trade partners and equip our industries with the tools to survive and thrive in uncertain times.”

Copyright Business Recorder, 2025