ISLAMABAD: Pakistan’s finance chief Muhammad Aurangzeb said on Saturday the government plans to send a high-level delegation to Washington to discuss the United States’ recent decision to impose a 29 percent tariff on Pakistani goods, describing the move as both a challenge and an opportunity to reset trade ties.
The finance minister’s remarks at a news conference came days after US President Donald Trump announced “reciprocal tariffs” on multiple countries, a measure widely viewed as a setback for a global economy still recovering from the pandemic. Trump defended the tariffs as necessary to address trade imbalances and what he termed unfair treatment of American goods abroad.
Pakistan’s inclusion in the tariff list has raised concern in Islamabad as the country pushes for export-driven growth. The US is Pakistan’s largest export destination, and the newly imposed duties threaten to undermine its fragile economic recovery.
Reacting to the development, Prime Minister Shehbaz Sharif this week formed a steering committee led by Aurangzeb to assess the impact of the tariffs and develop a policy response.
“You should never let a good crisis go to waste,” Aurangzeb told reporters. “So, we are looking at it both as a challenge and as an opportunity. On the opportunity side, it’s a relative value discussion in terms of what is happening at other locations and jurisdictions. And on the challenge side, what we can do in terms of the negotiations with the US administration.”
“In the next couple of days, we are going to finalize our recommendations to the prime minister and ... with [his] approval ... send a high-level delegation to Washington to get our views across and to ensure that we want to be ... a long term strategic partner [with the US],” he added.
Aurangzeb said a policy package was under development to guide future discussions with American officials.
“We want to make sure that we, in terms of our representations, put forward how we see [the tariff issue] in the medium to long term as a win-win situation for both Pakistan and the US,” he said.
According to the country’s central bank, Pakistan exported $5.44 billion worth of goods to the US in 2024. In the first eight months of the current fiscal year (July–February), exports to the US totaled $4 billion, up 10 percent from the same period last year.
Nearly 90 percent of those exports are textiles, which analysts expect to be hardest hit by the new tariffs.
Officials warn the increased cost burden could reduce Pakistan’s competitiveness, particularly if countries like China, Bangladesh and Vietnam — facing higher US tariffs — divert more of their exports to Europe, increasing competition in alternative markets.
The US tariff announcement could also disrupt Pakistan’s economic stabilization efforts, which rely on support from International Monetary Fund programs.
Global financial markets dropped sharply on Friday after China pledged retaliatory tariffs of 34 percent on US goods, heightening fears of a deepening trade war and possible global recession.