The US imposition of 29% tariffs on Pakistani goods has sparked intense debate among trade experts, economists and policymakers.
I believe the fresh US tariffs will have a devastating impact on Pakistan’s export-oriented industries, particularly textiles and apparel. These industries account for a significant portion of Pakistan’s exports and employ millions of workers. The tariffs will lead to a decline in exports to the US market, resulting in significant revenue losses for the country.
Moreover, the tariffs will increase costs for Pakistani exporters, making their products less competitive in the global market. This will result in a decline in Pakistan’s exports to other countries, exacerbating the country’s trade deficit. The tariffs will also lead to higher prices for consumers, as importers pass on the additional costs, resulting in higher inflation and reduced purchasing power.
According to the World Bank, Pakistan’s tariff rate is 9.03%, which is significantly higher than the world average of 2.59%. This highlights the need for Pakistan to reduce its tariffs and make its exports more competitive in the global market.
To mitigate the impact of tariffs, the Pakistani government should engage in diplomatic efforts to negotiate with trading partners to reduce or eliminate tariffs. Additionally, the government should focus on diversifying Pakistan’s export base and providing support to exporters through various incentives. It needs to take proactive measures to mitigate the impact of tariffs and work towards creating a fair and equitable trade environment.
Riaz Ali Panhwar
Hyderabad
