The recent United States (US) tariff decision, placing a 19% rate on Pakistani exports, is more encouraging than it first appears. In a world where India faces 25%, Bangladesh 20% and Vietnam 20%, Pakistan’s relatively lower rate is a diplomatic and economic win. It shows the US still sees space for Pakistan in its supply chains - a welcome shift in a world growing more protectionist.
The government deserves credit for avoiding the harshest tariff brackets, which have hit others with rates as high as 40%. But this breathing space must be used wisely. We’re in a better lane - but we still need to drive faster.
Markets don’t wait for the prepared - they reward the proactive.
Pakistan now has a limited window to act: we must push aggressively into value-added sectors and grab the market share slipping from our higher-tariffed competitors.
Pakistan has the highest tax burden in the region, coupled with the most expensive electricity and gas tariffs among peer economies. The recent withdrawal of the Export Finance Scheme (EFS) - a facility that India, Bangladesh, and even Vietnam continue to provide under various names -adds further cost pressure.
These structural disadvantages must be addressed urgently if we’re to compete fairly.
Despite this, the opportunity is real. With major players like India and Myanmar now priced out of several categories, Pakistani products -particularly in garments, leather and surgical goods - can step in.
But they’ll need targeted incentives, modernisation support, and trade diplomacy to get there.
Markets don’t wait for the prepared - they reward the proactive. We can’t control tariff policy abroad, but we can shape our response. Let’s make this the start of Pakistan’s export transformation - not another missed chance.
The article does not necessarily reflect the opinion of Business Recorder or its owners.
The writer is Director of Gul Ahmed Textile Mills Limited
Comments
Comments are closed for this article.