Islamabad:
Prime Minister Shehbaz Sharif has approved a plan to start negotiations with the United States by offering lower prices and an increase in market share, as a report indicates that prices cannot get rid of $ 564 million exports to 2.2 billion dollars.
The government plans to reduce prices to approximately 55 products by remaining within the framework of the World Trade Organization, which would extend the advantages similar to other nations, according to officials who are aware of these discussions.
These lowered rates would be largely in line with the prices available by China under the Bilateral Free Trade Agreement (ALE), sources told The Express PK Press Club. The government has also prepared the response to non-tariff concerns raised by the banned ban on X, restrictions on the repatriation of profits and other obstacles of this type.
The developments occurred the day when the prices improved in 60 countries have entered into force and certain Pakistani exporters have received “stop requests” from American buyers.
Tabadlab, a political reflection group, reported in a dissertation that the 29% increase in prices on Pakistani products would result in a loss of around $ 564 million to exports during the first year 2025-26. He also said that in a worst case, the loss could increase to $ 2.2 billion.
Prime Minister Shehbaz Sharif chaired a meeting on Wednesday to discuss the price imposed by the United States in the middle of the commercial war climbing between the United States and China. On Wednesday, Beijing also retaliated by imposing additional 34% tariffs on American products, corresponding to the total of 104% of the rights that Washington imposed on the second world economy.
The United States has also imposed additional 29% tariffs on Pakistani products to reverse the 3 billion dollars trade deficit in Islamabad. Among the American concerns are the non-tariff obstacles to trade and online restrictions, including on the social-x media platform.
The Prime Minister was presented with the report of the steering committee and the working group on the new prices imposed by the United States and the future proposed conduct. The meeting was presented with various alternative action courses.
The Prime Minister had constituted these committees led by finance Minister Muhammad Aurangzeb and the Secretary of Commerce Jawad Paul last week.
An announcement of the Prime Minister’s office said the government had decided to send a high-level delegation to the United States to promote trade relations and speak on the American Tarrifs imposed by the administration of US President Donald Trump.
Shehbaz Sharif has instructed the delegation, which would also include commercial figures and exporters, to develop a mutually beneficial action plan for the future, read a declaration published by the PM office.
The sources have indicated that the government’s plan included the request for reversing additional prices in return for the increase in the market share of American imports and prices reduction.
The options include reducing prices to approximately 55 ranges of products with major advantages to offer on cotton, soy and petroleum products.
Cotton import prices are already zero and the government plans to ensure the American authorities for additional import of the goods, according to sources. In this regard, the Prime Minister has set up another working group on Cotton, which will finalize these proposals.
Some of the approved plan contours may require approvals from the firm, including the firm’s economic coordination committee.
The Pakistani authorities were of the opinion that they could not import goods to make their industries not competitive but still want to find an intermediary group to protect its market share.
The Pakistani plan includes the search for a reversal in 4th pre-avril position or at least lower the additional prices at the levels of its competitors such as Egypt and Turkey, sources said.
“The duration of trade relations in the United States-Pakistan,” said Prime Minister Shehbaz, adding that the government wanted to further strengthen its commercial partnership with the United States.
The meeting was informed that the Pakistani Embassy in the United States is in constant contact with the United States government.
Tabadlab lifts the curtain
The political thinking group has published a brief preliminary report on the implications of the American tariff war against the economy of Pakistan.
He indicates that the estimates suggest that Pakistan’s loss of export will amount to around $ 564 million during the next financial year in the context of new American prices, potentially increased to $ 2.2 billion over time in the worst case. This would have a negative impact on the deficit in the current account, undermining recent progress and aggravating the country’s fragile economic growth prospects, he added.
In the worst of improbable cases, Pakistan can lose market share and domestic demand in the United States is more and more satisfied by local producers, he added.
Tabadlab said its first discussions with exporters indicate that the low profitable margins of the sector make it difficult for the absorption of increased costs and that American importers are likely to transmit these costs to American consumers. This could lead to a reduction in the volume of textile imports to the United States.
Whether Pakistan loses or will obtain market share in the United States will largely depend on how the Pakistani government is committed to the Trump administration and how other textile producing countries react, he added.
Pakistan cannot enjoy
The report indicates that countries with large domestic markets, solid commercial fundamental and significant diplomatic capital may be able to take advantage of the opportunities that the Trump administration rate increases.
“However, Pakistan has historically fought in such scenarios. Without urgent and strategically coherent political actions, this moment could become more risk than the opportunity for the Pakistani economy,” he added.
Imports from Pakistan from the United States is small and generate limited rate income, or $ 85 million in the last financial year.
“For American decision -makers, tariff settings alone will not increase exports significantly to Pakistan,” said Tabadlab.
In addition, the United States played a limited role in the main categories of imports in Pakistan, representing only 1.4% of them, well below 4% to all imports, the report indicates.
Pakistan imports a mixture of goods from the United States, ranging from low-cost raw cotton and scrap to high-value pharmaceuticals.
The report indicates that the American complaint of an average rate rate of 58% on its exports to Pakistan seems incoherent, even if we take into account para-varify such as regulatory rights, sales tax, Fed and income tax collected at source, which are not traditional customs duties.
But Tabadlab said Pakistan uses tariffs like a tool to generate income and “this can represent a field of negotiations with the United States because other countries may not have similar charges applied to import imports”.
Cumulatively caught, for political decision-makers, that makes the story of fair prices a more difficult sale, he added.
Non -tariff barriers
Non-tariff obstacles could become a potential point of friction in American-Pakistani commercial relations, according to Tabadlab. He declared that he included the use of statutory regulatory orders to manage specific import elements and restrictions on American digital platforms like X. Although the USTR report does not accuse Pakistan of targeted barriers against the United States, or manipulation of currencies, it signals areas of concern.
Certain important sectors in which the United States currently exports goods but are facing significant prices in Pakistan include vehicles with 76% of prices, furniture 27% of prices, edible fruits and 22% tariff and 19% paper, according to the memory. Any change on this front would force the Pakistani government to modify its sectoral policy, he added.
