Pakistan announced plans to send a high-ranking delegation to the United States in order to negotiate a response to the recently instituted 29% tariff on its exports. The move comes as a result of the US government’s aggressive trade policy, targeted at consolidating local industries at the expense of challenging trade ties with various partners around the globe, including Pakistan.
The Pakistani delegation will reportedly sit down for talks to deal with the tariffs, which have raised eyebrows among local exporters. Authorities are looking forward to talks that will bring down the tariffs and enhance the trade ties between the two nations, which have traditionally been bound by economic as well as geopolitical interests.
Economists warn the boost in tariffs would have adverse implications for Pakistan’s troubled export-based economy. Sensitive sectors such as textiles, agriculture, and electronics are likely to suffer greatly in the new tariff environment. Pakistan’s government is weighing several options to counter the implications, including the use of diplomatic channels to negotiate good results.
The developments have also triggered debate regarding the US’s overall trade policy, which appears to focus on American production. The result of these talks will have huge implications for Pakistan’s balance of trade as well as its economic prospects.
