Reciprocal trade situation with US: NA body urges MoC, Pakistan Embassy to continue efforts

ISLAMABAD: The National Assembly Standing Committee on Commerce, on Monday, urged the Ministry of Commerce and the Pakistan Embassy in Washington to continue their efforts to gain a clear understanding of the reciprocal trade situation with the United States.

The committee, which met with Jawed Hanif Khan in the chair, discussed trade issues with the US during an in-camera session. Secretary of Commerce, Jawad Paul, and Pakistan’s Ambassador to the US briefed the committee on the current status of trade relations, as well as the financial impact these relations have on Pakistan.

The Commerce secretary, who has yet to be allowed to proceed to the US with an inter-ministerial delegation that includes the private sector, briefed the committee on the potential financial implications of the new 29% tariffs announced by the US President. He also addressed concerns regarding the impact these tariffs could have on Pakistan’s exports and industries exporting goods to the US.

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The Secretary answered questions from the committee members about the strategies adopted by stakeholders in response to these tariffs. Sources said that the committee was informed that sectors affected by the new tariffs have already been notified. These sectors have been advised to develop strategies to mitigate potential losses.

Unconfirmed reports suggest that Pakistan could lose exports worth up to $2 billion. However, Pakistan has formulated its own strategy to address this gap. Pakistan’s Ambassador to the United States also briefed the committee on the current state of diplomatic relations with the US, detailing his recent interactions with the new US administration and contacts with Finance Minister Senator Muhammad Aurangzeb.

The committee members inquired about the trade gap that might arise due to the high tariffs on China and other countries in comparison to Pakistan. The Ambassador argued them that the US administration cannot ignore Pakistan, given its population of 250 million and its long-standing partnership with Washington.

During the meeting, it was highlighted that the production capacity of Pakistan’s industries may not be at a level capable of filling the gap if China and other countries lose access to the US market.

Regarding the tenure of the current body of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the Commerce secretary informed the committee that the Ministry of Commerce has prepared a summary based on the recommendations of the Standing Committee. However, the Ministry’s viewpoint are not aligned with some of the committee’s recommendations. The Secretary added that the summary has been sent to the Ministry of Law and Justice for comments, before being submitted to the Cabinet for consideration. The committee urged that a decision on the summary be expedited. In response, the Commerce secretary stated that he would contact the Secretary of Law to ensure the summary receives timely comments.

The committee also discussed the Export Facilitation Scheme (EFS) for the metal/steel sector, particularly the non-issuance of the draft SRO, which was already approved by the Cabinet. This delay has caused hundreds of consignments to be stuck at ports, affecting importers.

FBR Member (Customs Policy) Wajid Ali informed the committee that a special committee, headed by the Minister for Planning and Development, is addressing the issue of the EFS for the metal/steel sector. The committee has proposed several recommendations to make the SRO more feasible. He noted that some exporters have already managed to release their consignments by paying over Rs 5 billion in duties.

Some committee members accused the FBR of malafide intent in failing to implement the SRO, which had already been approved by the Cabinet. However, the chairman of the Standing Committee noted that the scheme had been misused by importers for many years.

He directed the FBR to consider the possibility of releasing stuck consignments against a bank guarantee, as suggested by some committee members. The FBR Member (Customs Policy) expressed agreement with the proposal, indicating that it could be considered.

Finally, the committee approved a proposal from the Ministry of Commerce to exempt certain Chinese goods from the Anti-Dumping Duty. These goods are used in foreign grant-in-aid projects by China, and they fall under the scheme that exempts Customs duties for such projects, as outlined in the Customs Act of 1969.

Copyright Business Recorder, 2025