Pakistan will not suffer a $1 billion loss due to the recent tariff imposition by the United States, Commerce Minister Jam Kamal Khan assured the National Assembly on Thursday. The reduction in tariffs from 29% to 19% will likely boost the sales of Pakistani products in the US market, particularly textiles, and lead to an increase in exports.
In his address to the National Assembly, the commerce minister explained that the revised tariff rate would create favorable conditions for Pakistani exports to the US. The decision to reduce the tariff from 29% to 19% follows the conclusion of a trade agreement between Pakistan and the United States, which is expected to stimulate Pakistan’s textile industry, a major export sector.
This tariff reduction is part of a broader shift in US trade policy under President Donald Trump, who earlier imposed new import duties on several countries, including Pakistan. These tariffs, ranging from 10% to 50%, are part of a strategy to reduce the US trade deficit while managing global supply chains and inflation. The recent change in tariff policy marks a positive turn for Pakistan’s trade relationship with the US.
Earlier this month, the US President also announced a deal to help develop Pakistan’s vast oil reserves. Trump highlighted this agreement on social media, confirming that both nations would work together to identify the oil company that will lead the partnership. The deal is seen as part of a broader economic and strategic agreement between the two countries.
Pakistan’s trade surplus with the US stood at approximately $3 billion in 2024, largely driven by the textile sector, which remains the largest component of Pakistan’s exports to the US market. Despite the challenges posed by the tariff adjustments, experts believe the reduction will have a net positive effect on Pakistani businesses and contribute to economic growth.
