Islamabad says new tariff arrangement to help Pakistan expand footprint in US market
The statement came a day after the White House said the US will charge a 19 percent tariff on imports from Pakistan, compared to a 29 percent reciprocal tariff announced in April that had raised alarm in Islamabad.
The US is Pakistan's top export destination, with shipments totaling $5.44 billion in fiscal year 2023-2024, according to official data. From July 2024 to February 2025, exports rose 10 percent from a year earlier.
Pakistan's finance ministry said the White House decision reflects a 'balanced and forward-looking approach' by US authorities that kept Pakistan competitive in relation to other South and Southeast Asian nations.
'In particular, this tariff level is expected to support Pakistan's export potential, especially in key sectors such as textiles, which remain the backbone of the country's export economy,' the ministry said.
'The Ministry of Finance... believes that the current tariff arrangement presents a significant opportunity to expand Pakistan's footprint in the US market.'
The previous US announcement of 29 percent tariff shook Pakistan, currently on a path to economic recovery under a $7 billion International Monetary Fund (IMF) program.
The two nations reached the deal just ahead of the August 1 deadline, followed by Finance Minister Muhammad Aurangzeb's talks with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer in Washington.
'It is now essential for Pakistani exporters and trade bodies to adopt an aggressive and focused marketing strategy to capitalize on this development,' the Pakistani finance ministry said.
'In addition to textiles, there is substantial potential for growth in other sectors, and the government is committed to facilitating exporters through policy support, market intelligence, and trade promotion initiatives.'
Meanwhile, Pakistan's largest refiner Cnergyico will import 1 million barrels of oil from Vitol in October, Reuters reported, citing its Vice Chairman Usama Qureshi.
Qureshi said the West Texas Intermediate light crude cargo will be loaded from Houston this month and is expected to arrive in Karachi in the second half of October, marking the country's first-ever purchase of US crude following the trade deal.
'This is a test spot cargo under our umbrella term agreement with Vitol. If it is commercially viable and available, we could import at least one cargo per month,' he said, adding that the shipment was not meant for resale.
The finance ministry said it was looking forward to further positive engagements and close cooperation with the US in areas of investment, artificial intelligence, cryptocurrency, mines and minerals, energy and other emerging sectors.
'Pakistan will continue to engage closely with President Trump and the US administration to promote the shared goals of economic development and mutual prosperity,' it said.
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