Pakistan should undergo a loss of around 1 billion dollars following the taxation of a tariff of 29% by the United States on Pakistani goods, according to a report published by the Pakistan Ministry of Commerce.
Despite this price, the United States should continue to face a 2 billion dollar trade deficit with Pakistan.
The document describes the potential impact of the new rate on the commercial relationship between the two countries. He notes that the commercial volume between Pakistan and the United States reached $ 7.3 billion in the last financial year. The United States exported $ 2.1 billion in Pakistan for $ 2.1 billion, reflecting an increase of 4.4% compared to the previous year.
On the other hand, exports from Pakistan to the United States in 2024 have totaled $ 5.1 billion, marking an increase of 4.9% compared to 2023. However, the expansion of the commercial imbalance between the two countries is notable, with the American trade deficit with Pakistan of 5.2% to reach $ 3 billion.
The textile and clothing sector continues to be the largest export in Pakistan in the United States, representing 55% of total exports. The information technology sector has also experienced strong growth, exports to the United States exceeding $ 1 billion in 2024.
The document warns that the 29% tariff will have a significant impact on Pakistan textile exports, which makes them potentially more expensive and reducing demand.
In addition, the price should exacerbate Pakistan’s trade deficit with the United States and can create challenges to find alternative markets for products such as rice and textiles. Global exports of Pakistan could decrease by 10 to 15% due to the new price.
In response to these potential challenges, the Ministry of Commerce highlighted the urgent need for trade negotiations between Pakistan and the United States to mitigate the negative effects of the price and work for a resolution.
