The Pakistan Institute of Development Economics (PIDE) has issued a policy brief highlighting the potential economic fallout from proposed retaliatory tariffs by the United States, estimating annual losses for Pakistan between $1.1 billion and $1.4 billion.
The policy note points out that Pakistan’s textile industry would be the most severely affected sector if the proposed 29% tariff is implemented.
Dr. Nadeem Javaid, Vice Chancellor of PIDE, acknowledged the seriousness of the situation but encouraged policymakers to view it as a strategic opportunity. “This isn’t just a looming threat; it also presents a chance for Pakistan to rethink and strengthen its export framework,” he said.
PIDE’s report underscored that international trade should be seen as a platform for mutual economic benefit rather than a zero-sum contest. However, the introduction of high tariffs by the U.S. could harm the longstanding trade partnership between the two nations.
“Pakistan’s trade landscape is overshadowed by growing uncertainty,” the institute warned, adding that the proposed duties could have far-reaching consequences for the country’s export-driven industries.
