Pakistani exporters are facing uncertainty after changes in the United States tariff policy, raising concerns about future trade with the country’s largest export market. Business leaders say frequent shifts in duties are creating confusion at a time when exporters are already under financial pressure.
The United States accounts for around six billion dollars of Pakistan’s annual exports. However, exporters warn that unstable tariff rules could affect new orders and long term planning, even though existing shipments are still moving.
Frequent Tariff Shifts Create Confusion for Exporters
Earlier, Pakistani goods entering the US were subject to a combined tariff of 29 percent. This included an existing 10 percent duty and an additional 19 percent imposed under emergency powers. On February 20, the US Supreme Court struck down the emergency based tariffs.
Soon after, president Donald Trump announced a new 10 percent global tariff under a different legal framework. While this reduced the overall duty, exporters say the repeated changes have made it difficult to assess future costs.
Meanwhile, exporters point out that the uncertainty comes at a tough time for the industry. High domestic taxes and rising business costs have already squeezed margins. Jawed Bilwani,a prominent businessman, said exporters were confused by the shifting policies and unsure how to plan ahead.
He added that the sector is also burdened by a super tax, which has collected billions of rupees from exporters in recent years. Although the State Bank has lowered interest rates on export financing, international lenders have raised concerns about such support.
New Orders at Risk Despite Stable Export Figures
At the same time, exporters say current trade figures do not fully reflect the situation. Existing orders from the US are still being fulfilled, as they were placed before the latest tariff changes. However, new contracts are being delayed as buyers and sellers wait for clarity.
In the first seven months of the current fiscal year, exports to the US reached 3.69 billion dollars, slightly higher than last year. Exporters stress that these numbers reflect earlier commitments, not fresh business.
Looking ahead, traders believe the real impact of tariff uncertainty may become visible in the next fiscal year. Until then, many exporters remain cautious about taking new orders from the US market.
Read more:
