Malik Waqar
Trump Announces 90-Day Pause on Tariffs Amid Global Concerns
Pakistan Faces Potential $2.17 Billion Export Loss in Worst-Case Scenario
ISLAMABAD – Pakistan has called for a mutually beneficial resolution to the recent imposition of tariffs by the United States, highlighting the far-reaching consequences such measures could have on global trade. The comments were made by Foreign Office Spokesperson Shafqat Ali Khan during the weekly press briefing on Thursday.
The spokesperson said Pakistan was closely monitoring the issue following the announcement of a 29% tariff on Pakistani exports under the US administration’s revised trade policy. The move was part of a broader escalation in tariffs announced by US President Donald Trump, including a baseline 10% duty on all imports and steeper levies for selected countries.
While President Trump has since authorised a 90-day suspension of most of the new tariffs—citing outreach from over 75 countries—the 10% flat tariff on all imports introduced last Saturday remains in effect. “I have authorised a 90-day PAUSE,” Trump posted on his Truth Social platform, claiming the delay was to allow for negotiations and to avoid retaliation.
A report by Islamabad-based think tank Tabadlab warns that Pakistan could suffer export losses of up to $564 million in FY2025-26 due to the tariffs, with the textile sector, which accounts for over half of Pakistan’s exports to the US, expected to be the hardest hit. In a worst-case scenario—if market share and demand both decline—the report estimates losses could rise to $2.17 billion.
“These tariffs may erase recent gains in exports across key sectors, undermining current account stability and compounding an already fragile economic outlook,” the report stated.
Pakistan’s exports to the United States currently total approximately $6.3 billion annually. The imposition of these tariffs poses a significant challenge at a time when Pakistan is seeking to stabilise its external account and revive economic growth.
Meanwhile, the government has announced it will send a delegation to Washington in the coming weeks to hold discussions aimed at reducing the impact of the new trade measures.
Despite these tensions, the data shows that Pakistan’s reliance on US imports is minimal. Imports from the US stood at $1.87 billion in 2024, accounting for just 4% of Pakistan’s total imports. Top US exports to Pakistan include pharmaceuticals ($147 million), machinery ($143 million), and iron and steel ($190 million). The tariff revenue generated from these imports is modest—around $85 million—with an effective average tariff rate of 4.5%, compared to Pakistan’s overall import tariff average of 8%.
The Trump administration has justified the steep tariffs by claiming that Pakistan imposes tariffs of up to 58% on US goods. However, experts argue this figure is based on a misleading formula, and point out that many key US exports to Pakistan—such as cotton and medical equipment—face little to no tariff barriers.
Global UGRAD Programme Discontinued
Responding to a question regarding the discontinuation of the Global Undergraduate Exchange Programme (Global UGRAD) for Pakistani students, the FO spokesperson said the move marked the conclusion of a 15-year engagement that had played a vital role in fostering academic and cultural exchanges.
He noted that the programme had significantly contributed to strengthening bilateral ties, particularly in the fields of education, science, and people-to-people relations.
