ISLAMABAD: A Pakistani delegation is expected to leave for the United States in the next two weeks to discuss the tariff imposed by President Donald Trump, a commerce ministry official said on Wednesday, adding the main focus will be on increasing US imports to address Washington concern of trade imbalance.
Trump announced to impose a 10 percent baseline tariff on all imports to the US and higher duties on dozens of other countries, including some of his country’s biggest trading partners, rattling global markets and bewildering American allies. He also imposed a 29 percent tariff on Pakistan, saying it was charging a 58 percent tariff on goods imported from the US.
Prime Minister Shehbaz Sharif chaired a meeting on Wednesday to discuss Pakistan’s response to the US tariff, with his office saying in a statement a high-level Pakistani delegation will go to the US to hold negotiations over the issue and work out a mutually beneficial course of action.
“The delegation will go to the US in the next two weeks as the final date will be decided after the prime minister’s visit to Belarus,” Naveed Kallu, the commerce ministry spokesperson, told Arab News.
He said deliberations were underway on various proposals.
“Three to four different proposals are being worked out, with the main focus on offering options to the United States to increase its exports to Pakistan in order to address their major issue of trade balance,” he continued.
The US trade deficit with Pakistan was $3 billion in 2024, a 5.2 percent increase over 2023, according to the Office of the US Trade Representative.
The Pakistani official said another option under consideration was the imposition of reciprocal tariffs on US imports, but the government was focused on finding an amicable solution that would be acceptable to both sides.
When asked about the possible impact of the new American tariff on Pakistani exports, Kallu said it was premature to assess the effects, but Pakistan would be the least impacted country compared to its competitors.
“We are still subject to the lowest tariffs compared to our competitors,” he noted. “Therefore, the impact on our exports will be minimal.”
He said business leaders’ and exporters’ suggestions were also taken into account while formulating the strategy, adding commerce minister had held consultations with them earlier this week to get their recommendations over the issue.
In 2024, Pakistan exported $5.12 billion to the US, with $3.93 billion, or 76.7 percent, coming from textiles and apparel.
The All Pakistan Textile Manufacturers Association (APTMA) maintained a limited yet strategic import substitution favoring the US could be pursued to support a more balanced trade relationship and ease tariff pressures.
“We have suggested that the government focus on reducing the trade gap and propose to the US that Pakistan could purchase more cotton and other items, including petroleum products, in exchange for a reconsideration of the new tariff,” Shahid Sattar, APTMA secretary-general, told Arab News.
He said Pakistan contributes just 0.25 percent to the overall US trade deficit, which is not a significant number.
“Given the limited economic impact of Pakistan’s surplus and its modest tariff regime, there is credible room for negotiation, especially if US market access concerns are addressed constructively,” he added.
Sattar said the US is the second-largest market for Pakistan’s textile exports after the European Union, accounting for about 25 percent of the sector’s annual exports. This, he maintained, makes the industry highly dependent on the US market and particularly vulnerable to any increase in tariffs.
“Even a 10 percent reduction in this sector’s exports would amount to around $350 million,” he said, adding despite the sector’s vulnerability higher tariffs on competitors offered some reassurance.
“Pakistan’s 29 percent reciprocal tariff is comparable to India’s 27 percent but lower than those imposed on Bangladesh [37 percent], China [34 percent] and Vietnam [46 percent],” he continued while pointing out these countries had stronger industrial bases, better logistics, favorable taxation regimes, lower energy costs and an overall better business environment.
Sattar said US cotton is already duty-free and could substitute imports from Brazil.
“Allowing direct imports of US Liquefied Natural Gas (LNG) by the textile sector would reduce energy costs and support US exports without harming Pakistan’s trade position,” he added.
Faisal Jahangir, Chairman of the Rice Exporters Association of Pakistan (REAP), the country’s second-largest export trade body after textiles, contributing over $2 billion to the national economy annually, said the tariff will have minimal impact on rice exports due to limited options in this sector for the US.
“The US imports rice from only two countries, Pakistan and India, due to the highest safety and compliance standards, and Pakistani rice meets these standards even better than India,” he told Arab News.
He said even Indian brands import rice from Pakistan to further export to other countries, especially the US.
“This tariff will affect US importers more, as they will still need to buy the rice but will now also have to factor in the added cost of the tariff,” he added.
Asked about his meeting with the commerce minister, Jahangir said REAP had suggested the government, along with other proposals, should consider imposing reciprocal tariffs on US food products.
“If our delegation fails to get any concession, we can respond to the [US] move by imposing reciprocal tariffs because we do have the option to import food products from many other countries,” he added.
Pakistan to propose more US imports as delegation set to visit Washington in two weeks
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Pakistan to propose more US imports as delegation set to visit Washington in two weeks
- President Donald Trump imposed a 29 percent tariff on Pakistan last week, saying Islamabad charges 58 percent duty on American goods
- Pakistani exporters propose importing US cotton, liquefied natural gas and petroleum products to address trade imbalance
Pakistan police say four militants killed in operation in Punjab’s Dera Ghazi Khan
- The operation in DG Khan was launched on intelligence reports about militant movement near the Punjab-Khyber Pakhtunkhwa border
- Pakistan is currently battling twin insurgencies in Khyber Pakhtunkhwa and Balochistan, which Punjab’s DG Khan district borders
ISLAMABAD: Police killed four militants in a successful operation in Dera Ghazi Khan district of Pakistan’s eastern Punjab province, Pakistani state media reported on Sunday.
The Dera Ghazi Khan, or DG Khan, district borders the southwestern Balochistan and northwestern Khyber Pakhtunkhwa (KP) where Pakistan has been battling twin insurgencies.
The operation was conducted in DG Khan’s Kot Mubarak area and the law enforcers recovered a sizeable cache of heavy weapons and ammunition from the site of the encounter.
“The swift and effective action of the police teams thwarted the terrorists’ nefarious plans,” the state-run Radio Pakistan broadcaster reported, citing officials.
“Inspector General of Punjab Police Dr. Usman Anwar commended the efforts of the Dera Ghazi Khan Police and said the Punjab police stand as a strong barrier against anti-state elements.”
Pakistan is currently battling twin insurgencies: one led by religiously motivated groups, including the Tehreek-e-Taliban Pakistan (TTP), mainly in its Khyber Pakhtunkhwa (KP) province and the other by ethno-nationalist Baloch separatist groups in Balochistan.
Militants often seek refuge in border areas of neighboring provinces amid intensifying counter-insurgency operations in KP and Balochistan.
The operation in DG Khan was launched on intelligence reports about militant movement near the Punjab-Khyber Pakhtunkhwa border, the APP news agency reported, citing a police spokesman.
“Some suspects fled using cover from bushes and mounds,” it said. “A search-and-sweep operation is ongoing to track them down.”
Pakistan Navy conducts exercise to counter sub-conventional, asymmetric threats to major ports
- The exercise comes weeks after Pakistani and India air and ground forces engaged in a four-day military conflict that killed 70 people
- Reports suggests an Indian aircraft carrier maneuvered toward Karachi, but Pakistan Navy kept it confined to Indian territorial waters
ISLAMABAD: Pakistan Navy has conducted a comprehensive two-day exercise to counter sub-conventional and asymmetric threats to all major ports and harbors, its Directorate General of Public Relations (DGPR) said on Sunday, weeks after a four-day standoff with India.
While air forces and armies of both countries traded jet, drone, missile and artillery strikes last month, the two navies did not reportedly engage each other during the four-day standoff.
Media reports, however, suggested that Indian aircraft carrier Vikrant had maneuvered toward the southern Pakistani port city of Karachi, but Pakistan Navy kept it confined to the Indian territorial waters.
The DGPR said on Sunday the naval exercise was aimed at validating and refining Tactics, Techniques and Procedures (TTPs) to ensure robust defense of critical maritime infrastructure against “evolving” asymmetrical threats.
“The exercise involved coordinated operations by PN (Pakistan Navy) Fleet units, Pakistan Marines, SSG (Special Services Group of Navy) and Naval Aviation assets,” it said in a statement.
“The exercise’s scenarios were designed to simulate a range of sub-conventional threats including sabotage, infiltration and unconventional attacks, enabling participating units to enhance inter-agency coordination, situational awareness and rapid response capabilities.”
During the exercise, Pakistan Coast Commander Rear Admiral Faisal Amin visited various operational setups at ports and harbors and witnessed live action simulations carried out by participating units.
“COMCOAST appreciated high level of preparedness and professional conduct demonstrated during the exercises,” the DGPR said.
“He emphasized the importance of maritime installations and added that secure functioning of ports and harbors is directly linked to national economic stability and growth.”
Haris hits maiden hundred as Pakistan whitewash Bangladesh
- Haris, playing in his 17th T20I, carted seven sixes and eight boundaries in his 107 off just 46 balls
- Pakistan chased down 197 runs in 17.2 overs for their first home T20I series win in over three years
LAHORE: Mohammad Haris hit a swashbuckling maiden international century to guide Pakistan to a 3-0 clean sweep of Bangladesh with a seven-wicket win in the third and final Twenty20 international in Lahore on Sunday.
Haris, playing in his 17th T20I, carted seven sixes and eight boundaries in his 107 off just 46 balls as Pakistan chased down a challenging 197-run target in 17.2 overs for their first home T20I series win in three-and-a-half years.
Pakistan won the first two matches by 37 and 57 runs at the same venue.
Parvez Hossain smashed four sixes and seven boundaries in his solid 34-ball 66 to lift Bangladesh to 196-6 in their 20 overs.
Pakistan lost Sahibzada Farhan for one in the first over but Haris, whose hundred came up off 45 balls, added 92 for the second wicket with Saim Ayub and an unbroken 60 for the fourth with Salman Agha who made 15 not out.
Ayub hit four sixes and two boundaries in his 29-ball 45 while Hasan Nawaz scored 13-ball 26 as the home batters enthralled a near-capacity 30,000 crowd at Gaddafi Stadium.
Earlier, Parvez shared a 110-run opening stand with Tanzid Hasan (32-ball 42 with three sixes and as many boundaries) after the tourists were sent in to bat.
The Parvez-Tanzid stand gave Bangladesh an ideal start for their highest T20I total against Pakistan beating the 175-6 they made against them at Pallekele in 2012.
Towhid Hridoy, who scored 25 from 18 balls with a six and two boundaries, then added 49 for the third wicket with Litton Das who made 22.
Fast bowlers Abbas Afridi (2-26) and Hasan Ali (2-38) were the pick of the home bowlers.
Pakistan reaffirms commitment to macroeconomic stability as Ipsos survey shows rising consumer trust
Pakistan reaffirms commitment to macroeconomic stability as Ipsos survey shows rising consumer trust
- The latest Ipsos survey revealed that 42% Pakistanis now believe the country is heading in the right direction
- The development comes amid stabilization of key indicators, including inflation, exchange rate and forex reserves
KARACHI: Pakistan on Sunday reaffirmed its commitment to macroeconomic stability after Ipsos, a Paris-based global market research and consultation firm, said consumer confidence grew in the South Asian country in the second quarter of this year.
The Ipsos survey revealed a significant surge in consumer confidence, with 42% of Pakistanis now believing the country is heading in the right direction — the highest level recorded in six years.
Perceptions of the economy being strong reached their most favorable levels since August 2019, and optimism overtook pessimism that marked a key psychological shift among the population, according to the survey.
Pakistan’s Finance Minister Muhammad Aurangzeb said the “encouraging” data reflected the success of his government’s disciplined and targeted macroeconomic strategy implemented over the last 14 months.
“He highlighted that consumer confidence in making major purchases and investments has doubled compared to the same period last year, indicating that households are beginning to feel more secure in their financial prospects. Similarly, confidence in job security is now at its highest since 2019, a sign that
labor market conditions are gradually stabilizing in response to pro-growth policies and reforms,” the finance ministry said.
“Senator Aurangzeb reaffirmed that the government remains committed to maintaining macroeconomic stability, accelerating structural reforms, and ensuring that economic growth translates into real and inclusive progress for all citizens.”
The development comes amid stabilization of key economic indicators, including inflation, exchange rate, foreign exchange reserves and fiscal discipline, that has led a renewed public trust in Pakistan, which is currently on path to economic recovery under a $7 billion International Monetary Fund (IMF) program secured in Sept. last year.
Aurangzeb pointed out that this upswing in consumer confidence spans across urban and rural areas, and is particularly evident among youth and women, demonstrating the broad-based nature of the economic turnaround.
He linked this optimism to sustained government efforts to create an enabling environment to enhance private sector growth, exports, social protection and financial inclusion.
“The findings of the IPSOS survey are a timely validation of Pakistan’s economic direction and a clear signal that the country is on a steady path toward recovery and resilience,” the minister said.
India arrests 81 for ‘sympathizing’ with Pakistan
- There has been a clampdown on social media since an April 22 attack on tourists in Indian-administered Kashmir
- New Delhi blamed Pakistan for backing the militants it said carried out the attack, Islamabad denies the allegation
GUWAHATI: Indian police have arrested scores of people for “sympathizing” with Pakistan, a month after the worst conflict between the arch-rivals for decades, a top government official said Sunday.
The arrests took place in the northeastern state of Assam, where Chief Minister Himanta Biswa Sarma said “81 anti-nationals are now behind bars for sympathizing with Pak.”
Sarma, from Prime Minister Narendra Modi’s Hindu nationalist ruling party, said in a statement “our systems are constantly tracking anti-national posts on social media and taking actions.”
One of the persons was arrested after he posted a Pakistani flag on his Instagram, Assam police told AFP.
No further details about other arrests were given.
There has been a wider clampdown on social media since an April 22 attack on tourists in Indian-administered Kashmir, the deadliest on civilians in the contested Muslim-majority territory in decades.
New Delhi blamed Islamabad for backing the militants it said carried out the attack, charges that Pakistan denied.
India and Pakistan then fought a four-day conflict, their worst standoff since 1999, before a ceasefire was agreed on May 10.
India’s counter-terrorism agency last month arrested a paramilitary police officer for allegedly spying for Pakistan, while authorities have arrested at least 10 other people on espionage charges in May, according to local media.
Sarma is also pushing efforts to stem the contentious issue of illegal immigration.
Assam shares a long and porous border with neighboring Muslim-majority Bangladesh.
Indian media have reported that Assam’s government has allegedly rounded up dozens of alleged Bangladeshis in the past month and taken them to the frontier to cross.
The Times of India newspaper on Saturday reported that Assam was “dumping them in no-man’s land,” suggesting that at least 49 had been pushed back between May 27-29 alone.
The Assam government has not commented on the reports.
Bangladesh, largely encircled by land by India, has seen relations with New Delhi turn icy, after the Dhaka government was toppled in an uprising last year.
Bangladesh has also moved closer to China, as well as to Pakistan.
