- Committee responsible for carrying out an in -depth analysis of American prices.
- To guide, supervise the working group on reciprocal prices.
- Deliberate, approves the recommendations presented by the working group.
Prime Minister Shehbaz Sharif was a steering committee of 12 members to face the reciprocal rates imposed by US President Donald Trump on Pakistani property, a decision that could question the country’s competitiveness of exports.
“The Prime Minister was happy to constitute the American reciprocal reciprocal prices on Friday for in -depth analysis and the American reciprocal prices,” said a notification published by the Prime Minister (PMO).
The Committee of 12 members includes the Minister of Finance, the Minister of Commerce, the Minister of Petroleum, the Special Assistant on the Industries, the Federal President of the Revenue Council, Secretary of Foreign Affairs, Pakistan Ambassador to the World Trade Organization, Ali Sarfaraz Hussain, former DC, DCO, DC, DC, DC, Dr Manzoor, Ijaz, Ijaz, Manzoor ,, Dr Manzoor ,, Ijaz Nabi, Commerce and Flassotton, Dr Manzoor Ahmad, Ijaz Nabi, Commerce and Flasson Dr Manzoor Ahmad, Ijaz Commerce Secretary.
This decision was made after Trump imposed radical reciprocal prices on the trade partners of the United States. The day was described as “release day” by Trump, who signed an executive decree imposing a flat rate at 10% on almost all nations, then additional prices in the countries that the United States accuses of higher levies from American goods.
The Trump administration imposed a 29% tariff on Pakistani imports, in addition to a reference rate of 10% applied to all imports, passing the total price on Pakistani products at 39%.
In his remarks, President Trump said: “Pakistan invoiced a 58% rate on our goods. Consequently, we impose a 29% tariff on their products.”
The 10% reference rate will apply from April 5, 2025, with the reciprocal rate of an additional 29%, from April 9, 2025.
A senior official from the Ministry of Commerce said The news The fact that this decision will reduce the competitiveness of Pakistan prices and make sales maintenance on the American market more difficult compared to “lower prices” such as India and Turkiye.
The sanctions announced by Trump launched a dive on the global financial markets and aroused the conviction of other leaders who count with the end of an era of commercial liberalization of several decades.
Meanwhile, the notification – issued by the PMO on Friday – also indicated the mandate (twists) of the working group.
The committee would guide and supervise the working group on American reciprocal prices; deliberate and approve the recommendations presented by the working group; Negotiate with us as a major trading partner on the basis of the attempt at what is necessary; Brof the Prime Minister on the basis of developments / initiatives regularly concerning the link; All other tasks deemed appropriate by the chairman of the committee.
The 12 members’ committee could also appoint additional members on the basis of needs. “The Division of the Ministry of Commerce informs the working group and provides secretarial support,” he added.
Impact of prices on Pakistan
This decision practically replaced Pakistan’s commercial status within the framework of the generalized preference system (GSP), which offered lower tasks (generally 4 to 5%) on certain goods.
The United States is the largest unique export market in Pakistan, with exports worth around $ 6 billion per year, mainly textiles.
Certain goods such as copper, pharmaceutical products, semiconductors, wood, gold and energy are exempt from reciprocal prices, according to an information sheet on the White House, although they can always face the basic line of 10%, unless otherwise indicated.
However, the new reciprocal prices established by the prescription of the American president are added to any other object, fees, taxes, abuses or charges applicable on certain articles such as the existing rate on summary clothing is 32%, the new price will be 61% (32 + 29), reveals a document prepared for the premier by the Ministry of Commerce on the impact of American tariffs on Pakistan Export.
However, Pakistan Secretary General Textile Mills (Aptma) Shahid Sattar said Pakistan will have a “marginal impact” on exports, because regional economies are faced with more prices than Pakistan.
He pointed out that Bangladesh faces 37% reciprocal rate plus a reference rate of 10%, Sri Lanka 44% plus 10%, Vietnam 40% plus a basic rate of 10% and 34% in China plus a basic rate of 10%.
However, Washington says that if a country reduces prices on American products, this will further reduce tasks on the products of this country. He suggested that Pakistan should reduce prices on American products. He said that the textile industry imports cotton from the United States with zero.
The document prepared by the Ministry of Commerce claims that the increase in prices considerably increases the cost of Pakistani products in the United States, potentially reducing the competitiveness of exports, especially in textiles, which represent a significant part of its $ 6 billion in annual exports to the United States.
This could result in job losses in export -oriented industries, a broader trade deficit and higher consumer prices at the national level if Pakistan retaliated or moves trade elsewhere.
While some analysts suggest a decrease in world prices for raw materials from commercial disruptions could compensate for import costs for Pakistan, the immediate effect on its exports linked to the United States is probably negative, given the importance of the market (around 19% of Pakistan’s total exports in the first half of exercise 25).
This policy is aligned with Trump’s wider strategy to reduce the American trade deficit (918.4 billion dollars in 2024) and stimulate national manufacturing, although Pakistan’s commercial surplus with the United States ($ 3 billion in 2024) is relatively low compared to giants like China.
The exact impact will depend on Pakistan’s response, potential negotiations and if it can redirect exports to other markets. For the moment, the total rate of 39% marks a strong escalation of previous concession rates, reflecting the aggressive position of the administration on reciprocity.
As part of the last scenario, Pakistan will have a cost advantage of 46% compared to Vietnam, 49% on Indonesia, 49% compared to Cambodia, 54% on China and 37% compared to Bangladesh. However, Pakistan will be faced with an inconvenience of 26% costs on India, 10% compared to Turkey and 23% compared to Jordan, Egypt and Central America.
This means that Pakistan can still be competitive against nations with higher prices, but can combat lower tariff markets such as India and Turkey.
This new price does not apply to goods with more than 20% of the material of American origin. Pakistani entrepreneurs will always have an option for industry to use more American cotton and have an exemption.