Pakistan Secures Major US Tariff Cut, Boosting Export Competitiveness

ISLAMABAD, August 13, 2025 – Pakistani exporters are set for a significant boost in the lucrative US market following a successful government negotiation that slashes reciprocal tariffs from 29% to 19%, the lowest rate among regional competitors.

The breakthrough, announced by the Ministry of Commerce on Tuesday, promises to enhance Pakistan's competitive edge and open new avenues for export growth. "The reduced tariff will create new opportunities for Pakistani exporters to expand their footprint in the US," stated an official ministry release.

The development was the focal point of a high-level meeting chaired by Commerce Minister Jam Kamal Khan. The session brought together key government figures, including Special Assistant to the PM on Industries Haroon Akhtar Khan, PM's Commerce Coordinator Rana Ihsaan Afzal, Commerce Secretary Jawad Paul, and senior officials. Crucially, over 30 leading exporters and SMEs from vital sectors like textiles, apparel, rice, surgical instruments, sports goods, leather, electronics, food, agriculture, and salt participated.

Government Commitment and Industry Response:

Minister Jam Kamal hailed the revised tariff structure as a "timely opportunity to boost exports." He credited the achievement to the "coordinated efforts of the government’s economic team, along with private sector support," calling it a milestone.

Haroon Akhtar Khan emphasized Pakistan's strengthened "comparative advantage in the region" and reaffirmed the government's commitment to "supporting industry stakeholders in unlocking business potential" amidst changing global dynamics.

Industry representatives welcomed the news but stressed the need for consistent, long-term policies. They urged the government to foster a "predictable policy environment" to help optimize manufacturing costs, ensure access to critical inputs, and facilitate effective long-term planning and growth.

Focus on Sustainable Export Growth:

Minister Jam reiterated the government's dedication to "export-led growth," outlining plans for both immediate actions and long-term strategic measures. He assured exporters that their specific recommendations would be compiled and presented directly to the Prime Minister for consideration and follow-up.

The meeting concluded with a resolution to "actively pursue the expansion of Pakistan’s export footprint in the US," aiming to transform the tariff reduction into a lasting national advantage that fuels broader socio-economic development.

Sustainability Initiative:

In a related development, PM's Commerce Coordinator Rana Ihsaan Afzal met with representatives from Octans Digital Pvt Ltd (a subsidiary of Interloop Holdings) to discuss enhancing sustainability and waste management practices within Pakistan's crucial textile industry.