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Pakistan now enjoys the lowest tariff rate in South Asia, with the United States imposing a 19% duty on its goods, significantly lower than the 25% rate applied to its arch-rival, India. This reduction from a previous 29% has been hailed as a major achievement for Pakistan’s trade prospects.
Prime Minister Shehbaz Sharif expressed “deep gratitude” to US President Donald Trump for his leadership in finalizing a trade agreement that led to the tariff reduction. In a statement on Thursday night, Pakistan’s Finance Ministry announced that the deal marks the beginning of a new era of economic cooperation, particularly in energy, mining, information technology, cryptocurrency, and other sectors.
The reduced tariff rate is expected to significantly boost Pakistan’s ready-made garment sector, which accounts for approximately 60% of the country’s total exports to the US. Pakistan’s main competitors in this sector—India, Bangladesh, and Vietnam—face higher tariffs, giving Pakistan a competitive edge.
