It is heartening to note that the government has acted quickly to devise a strategy aimed at lessening the impact of punishing Trump tariffs on Pakistan.
We all know that the country has been hit by 29 percent US tariffs on goods that Pakistan exports to the US. What we perhaps also know is the fact that the US is a country with which Pakistan has a trade surplus.
Our neighbor India, which has attracted 26 percent tariffs from the US, is said to be now finalizing a trade agreement with the Trump administration as it is unlikely to retaliate against the US tariffs. In other words, India is prioritizing a “balanced” trade deal with the US.
Be that as it may, the government of Pakistan has decided to include noted business persons and exporters in the delegation to visit Washington to “promote” trade relations and discuss the US tariffs.
Bringing in noted exporters is a good move on the part of the government to deal with the challenge of the Trump tariffs on a sound footing. But the government is expected to ultimately turn this new economic challenge into an opportunity in order to increase exports to not only the US but also other markets.
Last but not the least, State Bank of Pakistan is requested to reduce interest rates in view of the obtaining situation. India’s central bank, for example, has reduced interest rates as the US tariffs have put this South Asian country’s growth at great risk.
Hashim Jafri,
Karachi
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.