Pakistan-US Trade Tensions Escalate Further

Published on 4.11.25

  The current trade tensions between Pakistan and the United States pose a significant challenge to Pakistan's economy, with rising interest rates and US tariffs potentially reducing bank deposits and decreasing foreign exchange reserves. Experts in Pakistan have urged the government to focus on enhancing local business productivity and revamping the energy sector to mitigate the impact of these tariffs. Companies like Haji Haris Textile Mills have already been affected, with significant losses due to increased costs. To address this, a high-level delegation from Pakistan will meet with American officials in Washington to explore ways to establish a more balanced trade framework. The delegation will meet with American officials to explore ways to establish a more balanced trade framework, following a report presented by a steering committee on the new tariffs and alternative strategies. Pakistan's former ambassador Maleeha Lodhi suggests that the country should prioritize negotiating with the US government for tariff reductions, emphasizing the mutual economic benefits of continuing trade relations. Pakistan's international trade growth is closely tied to improved diplomatic relations, but the current Trump tariffs pose a significant challenge that can only be addressed through bilateral negotiations with the US.

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