Pakistan hopes to strengthen ties after Trump imposes 29 per cent tariffs: 'Never let crisis go waste'

Days after US President Donald Trump imposed reciprocal tariffs on all countries including Pakistan, Pakistani Finance Minister Muhammad Aurangzeb held a press conference and said that a "good crisis" should not be "wasted". He also informed that Pakistani Prime Minister Shehbaz Sharif has set up two committees to tackle the economic implications of the new tariffs. 

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"You should never let a good crisis go to waste," Aurangzeb said and explained that while the situation created immediate challenges, it also would open doors for negotiation and long-term engagement. "We want to make sure that we, in terms of our representations, put forward how we see it in the medium to long term as a win-win situation for both Pakistan and the US," Aurangzeb said.

As per a report by PTI, a senior delegation from Islamabad is expected to visit Washington before April 9, to present what officials describe as a “structured, mutually beneficial” proposal to the Trump administration.

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Aurangzeb in the press conference added that the government intended to formulate and present a well-structured package to the US administration. He also said that the two bodies set up by the Pakistani PM include a steering committee chaired by the finance minister and comprising ministers, prominent business leaders, secretaries, and academics, while the second was a working group led by the secretary of commerce. He was confident that recommendations would soon be submitted to the PM Shehbaz Sharif for approval. 

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Trump's tariff on Pakistan

The Trump administration has imposed a staggering 29 per cent tariff on imports from Pakistan.  According to the State Bank of Pakistan, total exports to the US during the fiscal year 2023-24 amounted to USD 5.44 billion. As per a report in Pakistani newspaper Dawn, in the first seven months of FY 2024-25, Pakistan exported $3.6 billion worth of goods to the US — accounting for 19% of its total exports — with textiles and apparel comprising 79 per cent ($2.8 billion) of that figure.

As per reports, if Trump’s proposed tariffs are enforced, Pakistan’s $6 billion export market to the US could face a severe blow. It will also threaten jobs, margins, and overall competitiveness.

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(With inputs from agencies)