Key points
- Pakistan collects $157m in tariffs annually from US exports: report
- US collects $610m in tariffs annually from Pakistani exports
- Pakistan has imposed an average tariff of 7.6pc on US exports
- Washington has imposed an average tariff of 10.7pc on Pakistani exports
ISLAMABAD: The Economic Policy and Business Development think tank has warned that the burden of taxes following Trump tariffs on Pakistan’s exports to the US will have adverse effects if not navigated correctly.
The think tank released a report on the effects of the Trump tariffs, which said that the burden of taxes on Pakistan’s exports will increase after the Trump tariffs, and Pakistan should increase its exports to countries other than the US.
According to the report, Pakistan can reduce tariffs through better diplomatic relations with the United States, but Pakistan’s textile products may be the worst affected.
Average tariff
The report states that Pakistan collects $157 million in tariffs annually from US exports, while the US collects $610 million in tariffs annually from Pakistani exports.
According to the report, Pakistan has imposed an average tariff of 7.6 per cent on US exports, while Washington has imposed an average tariff of 10.7 per cent on Pakistani exports.
The Economic Policy and Business Development report further states that Pakistan exported $5.71 billion to the US in 2024.
Textile exports
According to the report, Pakistan’s textile exports to the US account for 77 per cent of all exports to the country.
It also said only 14.8 per cent of Pakistan’s exports reach the US duty-free.
The report further states that about 53 per cent of Pakistan’s exports are subject to US tariffs, with the US imposing lower tariffs on Pakistan than Bangladesh, Vietnam and China.
According to the report, Pakistan can benefit by increasing exports of apparel, fabrics, and food products. Pakistan can gain access to a better market for sporting goods.
