KARACHI: Prime Minister Shehbaz Sharif has constituted a high-level steering committee led by the finance chief to assess the impact of a 29 percent tariff imposed by the United States on Pakistani goods and devise a policy response, according to a government notification this week.
The development follows US President Donald Trump’s announcement Wednesday of “reciprocal tariffs” on several countries, a move widely seen as a blow to the global economy still recovering from the COVID-19 pandemic. Trump defended the decision as necessary to correct trade imbalances and what he described as unfair treatment of American goods abroad.
Pakistan’s inclusion in the list of affected nations is of particular concern as the South Asian nation is seeking to boost its export-led growth. The US remains Pakistan’s top export destination, and the imposition of the 29 percent tariff threatens to undercut Islamabad’s fragile recovery efforts.
“Prime Minister has been pleased to constitute steering committee for in-depth analysis and policy responses to recently announced US Reciprocal Tariffs,” read a notification issued by the Prime Minister’s Office on Thursday.
The committee, chaired by Finance Minister Muhammad Aurangzeb, will supervise a working group led by the commerce secretary and finalize policy recommendations.
It will also be responsible for engaging with US officials as needed and updating the prime minister on related developments and initiatives.
According to data from Pakistan’s central bank, the country exported $5.44 billion worth of goods to the US last year.
During the current fiscal, exports to the US reached $4 billion from July 2024 to February 2025, up 10 percent from the same period the previous year.
Textiles account for nearly 90 percent of Pakistan’s exports to the US and are expected to be hardest hit by the new tariffs.
Officials fear the increased cost burden could weaken Pakistan’s position in its main overseas markets, especially if competitors like China, Bangladesh and Vietnam begin diverting goods to Europe after facing steeper tariffs in the US.
The tariff decision is also expected to hamper Pakistan’s broader efforts to stabilize its economy with the support of International Monetary Fund programs.
Global financial markets fell sharply on Friday after China vowed to retaliate with 34 percent tariffs on American goods, raising concerns of an escalating trade war and potential global recession.

KARACHI: Pakistani security forces on Friday killed two militants during an intelligence-based operation in the southwestern Balochistan province, the military said, as the region continues to experience an uptick in separatist attacks.
Balochistan, Pakistan’s largest province by landmass and rich in mineral resources, has faced a low-level insurgency for nearly two decades. Baloch separatist groups accuse the central government of exploiting local resources, such as gold and copper, without benefiting the local population.
Islamabad denies the allegations, saying it is committed to improving the lives of local residents in the province through various development projects.
The Inter-Services Public Relations (ISPR) said in a statement security forces conducted the operation in Kech District on the reported presence of militants.
“During the conduct of operation, own troops effectively engaged the terrorists’ location and after an intense fire exchange, two terrorists were sent to hell,” said the statement.
“The killed terrorists remained actively involved in numerous terrorist activities in the area against the law enforcement agencies as well as the innocent civilians,” it added.
The ISPR said a “sanitization operation” was continuing in the area to eliminate any remaining militants.
It maintained that Pakistani forces were “determined to thwart attempts at sabotaging peace, stability and progress of Balochistan.”
Reacting to the development, Prime Minister Shehbaz Sharif praised the security forces for carrying out the operation.
“The nation is proud of the bravery of our officers and soldiers,” he said in a statement circulated by his office.
“Our war against terrorism will continue until it is completely eradicated from the country,” he added.