ISLAMABAD: A Pakistani delegation is expected to leave for the United States in the next two weeks to discuss the tariff imposed by President Donald Trump, a commerce ministry official said on Wednesday, adding the main focus will be on increasing US imports to address Washington concern of trade imbalance.
Trump announced to impose a 10 percent baseline tariff on all imports to the US and higher duties on dozens of other countries, including some of his country’s biggest trading partners, rattling global markets and bewildering American allies. He also imposed a 29 percent tariff on Pakistan, saying it was charging a 58 percent tariff on goods imported from the US.
Prime Minister Shehbaz Sharif chaired a meeting on Wednesday to discuss Pakistan’s response to the US tariff, with his office saying in a statement a high-level Pakistani delegation will go to the US to hold negotiations over the issue and work out a mutually beneficial course of action.
“The delegation will go to the US in the next two weeks as the final date will be decided after the prime minister’s visit to Belarus,” Naveed Kallu, the commerce ministry spokesperson, told Arab News.
He said deliberations were underway on various proposals.
“Three to four different proposals are being worked out, with the main focus on offering options to the United States to increase its exports to Pakistan in order to address their major issue of trade balance,” he continued.
The US trade deficit with Pakistan was $3 billion in 2024, a 5.2 percent increase over 2023, according to the Office of the US Trade Representative.
The Pakistani official said another option under consideration was the imposition of reciprocal tariffs on US imports, but the government was focused on finding an amicable solution that would be acceptable to both sides.
When asked about the possible impact of the new American tariff on Pakistani exports, Kallu said it was premature to assess the effects, but Pakistan would be the least impacted country compared to its competitors.
“We are still subject to the lowest tariffs compared to our competitors,” he noted. “Therefore, the impact on our exports will be minimal.”
He said business leaders’ and exporters’ suggestions were also taken into account while formulating the strategy, adding commerce minister had held consultations with them earlier this week to get their recommendations over the issue.
In 2024, Pakistan exported $5.12 billion to the US, with $3.93 billion, or 76.7 percent, coming from textiles and apparel.
The All Pakistan Textile Manufacturers Association (APTMA) maintained a limited yet strategic import substitution favoring the US could be pursued to support a more balanced trade relationship and ease tariff pressures.
“We have suggested that the government focus on reducing the trade gap and propose to the US that Pakistan could purchase more cotton and other items, including petroleum products, in exchange for a reconsideration of the new tariff,” Shahid Sattar, APTMA secretary-general, told Arab News.
He said Pakistan contributes just 0.25 percent to the overall US trade deficit, which is not a significant number.
“Given the limited economic impact of Pakistan’s surplus and its modest tariff regime, there is credible room for negotiation, especially if US market access concerns are addressed constructively,” he added.
Sattar said the US is the second-largest market for Pakistan’s textile exports after the European Union, accounting for about 25 percent of the sector’s annual exports. This, he maintained, makes the industry highly dependent on the US market and particularly vulnerable to any increase in tariffs.
“Even a 10 percent reduction in this sector’s exports would amount to around $350 million,” he said, adding despite the sector’s vulnerability higher tariffs on competitors offered some reassurance.
“Pakistan’s 29 percent reciprocal tariff is comparable to India’s 27 percent but lower than those imposed on Bangladesh [37 percent], China [34 percent] and Vietnam [46 percent],” he continued while pointing out these countries had stronger industrial bases, better logistics, favorable taxation regimes, lower energy costs and an overall better business environment.
Sattar said US cotton is already duty-free and could substitute imports from Brazil.
“Allowing direct imports of US Liquefied Natural Gas (LNG) by the textile sector would reduce energy costs and support US exports without harming Pakistan’s trade position,” he added.
Faisal Jahangir, Chairman of the Rice Exporters Association of Pakistan (REAP), the country’s second-largest export trade body after textiles, contributing over $2 billion to the national economy annually, said the tariff will have minimal impact on rice exports due to limited options in this sector for the US.
“The US imports rice from only two countries, Pakistan and India, due to the highest safety and compliance standards, and Pakistani rice meets these standards even better than India,” he told Arab News.
He said even Indian brands import rice from Pakistan to further export to other countries, especially the US.
“This tariff will affect US importers more, as they will still need to buy the rice but will now also have to factor in the added cost of the tariff,” he added.
Asked about his meeting with the commerce minister, Jahangir said REAP had suggested the government, along with other proposals, should consider imposing reciprocal tariffs on US food products.
“If our delegation fails to get any concession, we can respond to the [US] move by imposing reciprocal tariffs because we do have the option to import food products from many other countries,” he added.
Pakistan to propose more US imports as delegation set to visit Washington in two weeks
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Pakistan to propose more US imports as delegation set to visit Washington in two weeks
- President Donald Trump imposed a 29 percent tariff on Pakistan last week, saying Islamabad charges 58 percent duty on American goods
- Pakistani exporters propose importing US cotton, liquefied natural gas and petroleum products to address trade imbalance
Islamabad says Indian PM’s remarks about Pakistan violate norms of ‘responsible statecraft’
- Narendra Modi said Pakistan’s army, economy will have to ‘pay a heavy price for every terrorist attack,’ upping the rhetoric in a standoff over water access
- Islamabad maintains the Indus Waters Treaty, which guarantees water for 80 percent of Pakistan’s farms, is legally binding and no party can unilaterally suspend it
ISLAMABAD: The Pakistani foreign office on Friday criticized Indian Prime Minister Narendra Modi for his remarks in which he warned of economic and military consequences for Pakistan, saying his statement violated “the norms of responsible statecraft.”
Modi said Pakistan will not get water from rivers over which India has rights, and that Pakistan’s army and economy will have to “pay a heavy price for every terrorist attack,” upping the rhetoric in a standoff over water access.
India last month said it was suspending the Indus Waters Treaty in a slew of measures after the killing of 26 people in an April 22 attack in Indian-administered Kashmir that New Delhi blamed on Islamabad, a charge Pakistan dismisses.
In its response to Modi’s comments at an event in Rajasthan, the Pakistani foreign office said such statements not only reflect a “deliberate attempt to mislead the public but also violate the norms of responsible statecraft.”
“Resorting to threats and boasting about military action against a sovereign nation is a grave breach of the United Nations Charter and established principles of international law,” it said.
“This dangerous approach undermines regional peace and stability.”
Any move to stop Pakistan accessing the water would have a devastating impact. The Indus treaty, brokered by the World Bank in 1960, guarantees water for 80 percent of Pakistan’s farms from three rivers that flow from India. The nuclear-armed neighbors have already clashed in their worst military fighting in nearly three decades before agreeing to a ceasefire on May 10.
Islamabad maintains the treaty is legally binding and no party can unilaterally suspend it, with its Attorney General Mansoor Usman Awan saying that Pakistan is willing to talk about or to address any concerns India may have.
The foreign office said Pakistan remains a consistent and proactive partner in the global fight against militancy and any insinuation seeking to associate Pakistan with “acts of terrorism is factually incorrect and patently misleading.”
“It is a tactic often employed to divert attention from India’s own internal challenges, particularly its repressive policies [in Kashmir],” it said on Friday.
India and Pakistan share a troubled relationship since they got independence from British rule in 1947, and have fought three wars, two of them over the Himalayan region of Kashmir, which they both claim in full but rule in part.
India accuses Pakistan of backing armed separatists in Kashmir. Pakistan denies this and says it only offers diplomatic and political support to Kashmiris.
Pakistan’s prime minister and military have also accused “Indian terror proxies” of involvement in a suicide bomb blast on an army school bus in Pakistan’s restive Balochistan province that killed five people, including three children, on Wednesday. India rejected the allegation.
Both nations have retaliated since the April attack by halting trade, closing borders and suspending most visas.
The Pakistani foreign office urged the Indian leadership to exercise restraint, saying such escalatory statements only exacerbate tensions.
“India should demonstrate maturity by resolving outstanding disputes through peaceful dialogue and diplomacy,” it said.
“Pakistan remains firmly committed to peaceful coexistence, regional stability, and constructive engagement. However, our desire for peace should not be misconstrued as weakness... Any misadventure or aggression will be met with a resolute and proportionate response. Pakistan has demonstrated its resolve in the past and will do so again, if required.”
Pakistani politicians see field marshal rank as affirmation of army chief’s influence, not a power shift
- The government elevated Army Chief Asim Munir to field marshal on Tuesday, making him only the second officer to attain the title in the country
- The promotion came over a week after Pakistan declared victory in a four-day military conflict with India, killing around 70 people on both sides
ISLAMABAD: Pakistani politicians and analysts have said that the country’s top military commander Asim Munir’s promotion to the field marshal rank, which followed Pakistan’s recent standoff with India, would not further affect the political landscape as he already held “great influence.”
The Pakistani government elevated Army Chief Munir to the rank of field marshal on Tuesday, making him only the second military officer after Ayub Khan to attain the title in the history of the South Asian country.
The promotion came more than a week after Pakistan declared victory in a four-day military conflict with India, which saw the archfoes trade missile, drone and artillery strikes, killing around 70 people on both sides.
The office of the army chief is widely seen as the most powerful position in Pakistan, a country where the military has directly ruled for nearly half its history and wields considerable influence in matters of national significance even during civilian rule.
“It will, God willing, have no [further] impact on political space or Pakistan Tehreek-e-Insaf (PTI),” Sayed Zulfikar Bukhari, a spokesperson of jailed ex-prime minister Imran Khan-led PTI party, told Arab News this week.
“He already held all the influence.”
Khan’s PTI has been at loggerheads with the military since the downfall of its administration in 2022 and on May 9, 2023, hundreds of people carrying its flags had attacked government and military installations over the ex-premier’s arrest in a graft case. The attacks followed hundreds of arrests and dozens of Khan supporters were even tried in military courts.
The PTI denies it instigated its followers to violence and accuses the military and its political rivals of a nationwide crackdown on its supporters. The Pakistani government and the military deny the accusation.
Bukhari called Munir’s promotion an “internal matter” of the army.
“It’s generally an internal matter for the army as a result of a victory against India,” he said, adding that the entire nation celebrated that victory and ceasefire.
“We hope that with this promotion, an internal ceasefire is also reached.”
For National Assembly Speaker Sardar Ayaz Sadiq, who is also the vice president of the ruling Pakistan Muslim League-Nawaz (PML-N) party, the promotion was not only a recognition of an individual’s capability, but also an acknowledgment of the sacrifices and professional competence of the Pakistani armed forces.
“Field Marshal Munir thwarted the enemy’s nefarious designs with great courage and strategy,” he said, adding the decision of his elevation would further boost the morale of the military and promote national unity.
On Thursday, Pakistan’s top political leadership conferred the baton of field marshal on Army Chief Munir at a ceremony in Islamabad. PM Shehbaz Sharif praised him for his “unflinching courage” and the army for responding with speed and precision to Indian military strikes.
The strikes were triggered by an attack in Indian-administered Kashmir that New Delhi blamed on Pakistan, an allegation denied by Islamabad.
Khyber Pakhtunkhwa Provincial Governor Faisal Karim Kundi, a senior leader of the Pakistan Peoples Party (PPP), maintained the promotion of the army chief was a “merit-based decision” by the government as he fully deserved it.
“This move has no political angle, neither has been done to harm anyone. So, all should appreciate it,” he told Arab News.
Liaqat Baloch, a senior member of the Jamaat-e-Islami party, said it was the government’s prerogative to make such promotions.
“I think now Field Marshal Munir should work for the supremacy of the constitution,” he said, adding it would further elevate his status among people.
Baloch said the move would not have much impact on political parties, including the PTI or any other opposition group.
Political analysts believed the promotion will further strengthen army chief’s commanding position in the power structure of the country.
“Field Marshal Munir now holds a central and commanding position within the power structure, especially in light of the current weakness and disunity among civilian political leaders,” Mushahid Hussain Syed, a seasoned politician and political commentator, told Arab News.
Even before the standoff with India, he said, all major political forces were already convinced of the establishment’s central role in Pakistan’s power dynamics.
“All the mainstream political forces are convinced that the path to Islamabad passes through Rawalpindi [home to army headquarters],” he added.
But Ahmed Bilal Mehboob, president of the Pakistan Institute of Legislative Development and Transparency (PILDAT), said the top military commander’s promotion would not “further shrink political space for the opposition,” including Khan’s party.
“I do not think this promotion would lead to greater influence in the government affairs than he [Asim Munir] already has,” he added.
Defense analyst and author, Ayesha Siddiqa, called the promotion a “political decision” by the ruling PML-N party to “appease” the most powerful individuals within the country.
“It is a political decision because the basis on which this title is given [the standoff with India] was not even an all-out war,” she told Arab News.
“This is possibly a move by the PML-N to ensure that the army chief stays happy and does not consider too seriously any major [rapprochement] vis-a-vis [the jailed former premier] Khan.”
Pakistan says will present evidence of Indian involvement in Balochistan school bus bombing at UN
- India has denied any involvement in the attack that killed six people, including four school children
- Pakistan’s UN envoy says many countries have expressed concern over India’s suspension of IWT
ISLAMABAD: Pakistan will raise the recent militant attack on a school bus in the southwestern Balochistan province at the United Nations (UN) and present evidence of Indian involvement to the international community, said the country’s top diplomat at the UN on Thursday.
At least six people, including four children, were killed on Wednesday when a vehicle-borne improvised explosive device targeted a school bus en route to an army-run school in the Khuzdar district.
Balochistan has witnessed a separatist insurgency for decades, though it has intensified more recently, with groups like the Baloch Liberation Army (BLA) carrying out high-casualty attacks on civilians and security forces.
Pakistan says such militant outfits are backed by India, though New Delhi denies the claim. The Indian administration also distanced itself from the Khuzdar school bus bombing, attributing such acts of violence to Pakistan’s “internal failures.”
“This was a heinous terrorist act directed against children, against students, [which is] totally unacceptable and condemnable,” Ambassador Asim Iftikhar Ahmad, Pakistan’s Permanent Representative to the United Nations, told Arab News in an interview.
“Pakistan is going to share the evidence [of Indian involvement] with the members of the international community, including in the UN,” he continued.
Ahmad said Pakistan had also provided evidence of India’s involvement in “terrorist activities” in the past, adding it was going to do it again.
He maintained New Delhi had been committing “terrorism” in Pakistan both directly and through its proxies.
He informed Pakistan would present a dossier to the UN and its member states to highlight a clear pattern of Indian involvement in militant violence aimed at destabilizing Pakistan, particularly Balochistan.
“The dossier will contain information about who is involved [and] what are the linkages,” he added.
The envoy said Pakistan had, in the past, proposed the listing of Indian nationals involved in orchestrating violent activities in Pakistan.
“Some of the members of the Security Council … did not act responsibly and in fact they block such listings,” he informed, adding it was the collective responsibility of all UN members to assess the situation objectively and not protect India unnecessarily.
Asked about India’s unilateral suspension of the Indus Waters Treaty (IWT), the ambassador said Pakistan had already raised the issue at the Security Council, as the move was highly escalatory and posed an existential threat to the country.
“We discussed this … during the meeting of the Security Council that was held on 5th of May, where a number of members of the Security Council expressed concern because it is clearly viewed by the international community as a violation of international law,” he said.
Pakistan defends nuclear safety after former US national security adviser warns of risks
- John Bolton tells an Indian media outlet Pakistan’s nuclear weapons could fall into the wrong hands
- Pakistan says the world should be more concerned about India’s ‘extremists’ controlling nuclear arms
ISLAMABAD: Pakistan said on Thursday it was fully confident in the safety and security of its nuclear weapons after former US National Security Adviser John Bolton expressed concern they could fall “into the hands of terrorists or irresponsible commanders” in an interview with an Indian media outlet.
Bolton’s remarks came days after Indian Defense Minister Rajnath Singh called for Pakistan’s nuclear arsenal to be placed under the supervision of the International Atomic Energy Agency, citing concerns about their safety.
Responding to a media query, foreign office spokesperson Ambassador Shafqat Ali Khan said Pakistan had a robust nuclear command and control system and a comprehensive security regime in place.
“It is ironic that John Bolton’s remarks were prompted by a statement from Rajnath Singh, a leader affiliated with a Hindu extremist organization, known for repeatedly issuing threats of aggression against Pakistan,” he said.
“In reality, the international community should be more concerned about India’s nuclear arsenal being controlled by individuals like Rajnath Singh, who harbor well-documented hostility toward Pakistan and Muslims, and exhibit dangerous delusions of grandeur,” he added.
Khan further warned of broader risks stemming from India’s domestic political trends.
“The escalating radicalization of India’s political landscape, media and segments of its society raises legitimate nuclear security concerns,” he said.
“These concerns are further exacerbated by the persistence of a nuclear black market in India, highlighting serious deficiencies in its nuclear security framework, as evidenced by recurring incidents of theft and illicit trafficking of sensitive nuclear materials.”
The renewed war of words between the two countries follows a sharp military escalation earlier this month.
The two nuclear-armed neighbors agreed to a US-brokered ceasefire on May 10, but diplomatic tensions have remained high, with both sides continuing to trade barbs over militant violence, water sharing and nuclear security.
Pakistan says open to water talks with India but insists Indus treaty remains binding
- Pakistan’s attorney general says India recently wrote to propose changes to the Indus Waters Treaty
- He says Islamabad considers the treaty fully operational as Modi threatens to block water flows
ISLAMABAD: Pakistan is willing to discuss water-sharing concerns with India, the country’s top legal official said on Thursday, though he maintained the decades-old Indus Waters Treaty remained legally binding on both countries and could not be unilaterally suspended.
Attorney General Mansoor Usman Awan shared his country’s perspective with Reuters over the issue in an exclusive interview after Indian Prime Minister Narendra Modi’s reiterated his threat to block water flows to Pakistan.
India has said it would suspend the treaty as part of a series of measures following a deadly militant attack in Indian-administered Kashmir on April 22, which New Delhi blamed on Islamabad. Pakistan denies the allegation and says any attempt to disrupt water access would be a breach of international obligations with severe consequences.
“Pakistan is willing to talk about or to address anything, any concerns they [the Indians] may have,” Awan said during the interview.
He said India had written to Pakistan in recent weeks, citing population growth and clean energy needs as reasons to modify the treaty. But he said any discussions would have to take part under the terms of the treaty.
Islamabad maintains the treaty is legally binding and no party can unilaterally suspend it, Awan said.
“As far as Pakistan is concerned, the treaty is very much operational, functional, and anything which India does, it does at its own cost and peril as far as the building of any hydroelectric power projects are concerned,” he added.
Modi on Thursday ramped up pressure during a public event in Rajasthan, a state bordering Pakistan, saying: “Pakistan will not get water from rivers over which India has rights.”
“Pakistan will have to pay a heavy price for every terrorist attack … Pakistan’s army will pay it. Pakistan’s economy will pay it,” he added, referencing the April 22 attack that left 26 people dead.
The 1960 Indus Waters Treaty, brokered by the World Bank, allocates water from six rivers shared by the two countries. It guarantees Pakistan access to waters that irrigate nearly 80 percent of its farmland.
Awan said Pakistan would oppose any attempts to alter the treaty outside of its legal framework.
The nuclear-armed neighbors had earlier engaged in their most intense military confrontation in decades before agreeing to a US-brokered ceasefire on May 10.
India and Pakistan have fought three wars since gaining independence in 1947, two of them over Kashmir, which both claim in full but administer in part. India accuses Pakistan of supporting Kashmiri separatists in the disputed region, a charge Pakistan denies.
Tensions further escalated on Wednesday between the two countries when a suicide bombing targeted a school bus in Pakistan’s southwestern Balochistan province, killing six people, including four children.
Pakistan’s government and military accused “Indian terror proxies” of orchestrating the attack, an allegation India rejected.
In the fallout from the April attack, both countries have halted trade, closed borders and suspended most visa processing, deepening diplomatic and economic strains.
