Pakistan Institute of Development Economics (PIDE) has issued a policy note on the potential impact of proposed U.S. retaliatory tariffs, warning that a 29% tariff could lead to annual losses between $1.1 billion and $1.4 billion for Pakistan.
According to PIDE, the textile sector would be the hardest hit by these tariffs.
PIDE Vice Chancellor Dr. Nadeem Javaid emphasized that while the situation poses a serious threat, it should also be seen as an opportunity for Pakistan to realign its export strategy.
"This moment is not just a threat but also an opportunity," said Dr. Javaid. "It could steer Pakistan toward a stronger and more strategic export future."
The policy note also stated that trade is not a zero-sum game but a process of mutual benefit that strengthens both economies. The proposed tariffs, however, risk damaging the longstanding trade relationship between the two countries.
"Clouds of uncertainty are looming over Pakistan’s trade landscape," warned PIDE, adding that the proposed U.S. tariffs could have devastating consequences for Pakistan’s export sector.
