Historic Trade Opportunity for Pakistan 

We are buying 56 billion dollars’ worth of goods from 100 countries, with a 30 billion dollar-plus trade deficit with them. We have a 3 billion dollar trade surplus with the USA. 

We should give the USA priority and propose zero percent duty access to Pakistan to market their goods here—eliminating their trade deficit with us. 

In return, we should seek the lowest reciprocal tariff for our largest export market instead of the currently imposed reciprocal tariff of 29 percent by the President Donald Trump Administration. 

Recent U.S. tariff increases on China (54%), Vietnam (46%), and Bangladesh (37%) have created a unique opportunity for Pakistan, which faces Reciprocal tariffs at 29 percent Which can be brought to the lowest tariffs by offering our domestic market for their products.

In the first 8 months of FY25, Pakistan exported $4 billion to the U.S. and is expected to reach $6 billion by year-end—but there’s potential to go beyond that.

In FY24, we exported $16.7 billion in textiles and apparel, of which $14 billion was value-added. Our total capacity is $25 billion, leaving $8 billion in unrealised potential. 

The US leather and footwear market, now affected by supplier tariffs, is another space Pakistan can enter.

With power tariffs at 9.5 cents/kWh and labour costs at $100/month, Pakistan is globally competitive.

To act on this opportunity, we must offer the lowest tariffs for market access in Pakistan for US products and partner with China to relocate their export-orientated industrial units for exports from Pakistan. 

This is a real opportunity for Pakistan. The time to act is now.