Pakistan, US Reach Revised Tariff Agreement to Boost Trade

The government announced on Friday the completion of a revised tariff agreement with the United States, which is expected to improve Pakistan’s market access and bolster its international trade efforts.

According to a statement issued by the Ministry of Finance, “The Government of Pakistan is pleased to share the successful conclusion of discussions on tariffs with the United States.”

The agreement stipulates a 19% tariff on Pakistani goods exported to the U.S. market, a considerable reduction from the originally proposed 29% rate.

Earlier on Thursday, U.S. President Donald Trump declared new tariffs as high as 41% on imports from various nations, including Pakistan, citing continuous trade deficits and a perceived lack of balance in two-way trade relations.

The statement further mentioned that, “This decision showcases a well-considered strategy by U.S. authorities, maintaining Pakistan’s competitive edge compared to other countries in South and Southeast Asia. This tariff level is anticipated to boost Pakistan’s exporting capabilities, notably in key sectors like textiles, a crucial component of the nation’s export economy.”

The finance minister stated ongoing collaboration with relevant stakeholders and expressed confidence that the current tariff arrangement presents a substantial opportunity for Pakistan to enhance its presence in the U.S. market.

It further emphasized that, “Pakistani exporters and trade organizations must now pursue a proactive and targeted marketing approach to fully leverage this development.”

The ministry emphasized growth potential beyond textiles, adding, “The government is dedicated to supporting exporters through policy measures, market insights, and trade development initiatives.”

As per the official statement, the Pakistani government aims to strengthen collaboration with the United States in areas including investment, artificial intelligence, digital currencies, mining, energy, and other evolving industries.

The statement concluded, “Pakistan will maintain close engagement with President Trump and the U.S. administration to advance shared objectives of economic advancement and mutual prosperity.”