2 weeks Ago
We knew this day was coming. Ever since former US President Donald Trump began wielding tariffs like a blunt instrument against the global economy, disregarding their ripple effects, it was only a matter of time before Pakistan found itself in the crosshairs. Now, with the imposition of a 29% tariff on goods exported from Pakistan to the United States, the country’s economy faces yet another challenge.
Given that the US remains Pakistan’s largest export market by a significant margin, this shift demands a serious reorientation of trade strategy. The immediate consequences are undoubtedly damaging. While exports to the US account for just 1.
5% of Pakistan’s GDP, that figure represents a crucial revenue stream, particularly for sectors such as textiles and surgical equipment, which have long relied on American consumers. Losing competitiveness in this market will only add to Pakistan’s already fragile economic predicament. To navigate this challenge, Pakistan will need to lower prices, enhance production efficiency, or absorb some of the losses to maintain competitiveness.
A small silver lining, however, is that similar tariffs have been imposed on other South Asian competitors, including Bangladesh, India, Sri Lanka, and Vietnam. While Pakistan will struggle to compete with domestically produced American goods, its standing relative to these regional rivals may not be as severely affected. This latest move underscores the broader reality that the United States has been an unreliable partner—militarily, politically, and now economically.
In Gaza, it has demonstrated blatant disregard for international law and basic human morality. With its trade policies, it has now shown equal contempt for the global economic order. Pakistan must use this moment as a wake-up call.
Rather than remaining vulnerable to such economic shocks, the country must urgently diversify its trade relationships, seek new markets, and build stronger ties with alternative partners. The reliance on a single, unpredictable economic giant is no longer sustainable..
