Daily Times

Prime Minister Shehbaz Sharif has constituted a 12-member steering committee to deal with the reciprocal tariffs imposed by United States President Donald Trump on Pakistani goods, a move that could challenge the country’s export competitiveness.

“The prime minister has been pleased to constitute steering committee for in-depth analysis and policy responses to recently announced US Reciprocal Tariffs,” stated a notification issued by the Prime Minister Office (PMO) on Friday.

The 12-member committee includes finance minister, commerce minister, petroleum minister, special assistant on industries, Federal Board of Revenue Chairman, Foreign Affairs Secretary, Pakistan Ambassador to US Rizwan Saeed Sheikh, Ambassador of Pakistan to World Trade Organisation (WTO) Ali Sarfaraz Hussain, former WTO envoy Dr Manzoor Ahmad, Ijaz Nabi, Minister Trade and Investment, Washington DC, and Secretary Commerce.

The move came after Trump imposed sweeping reciprocal tariffs on the US’s trading partners. The day was termed “Liberation Day” by Trump, who signed an executive order imposing a flat 10% tariff on almost all nations and then additional tariffs on those countries that the US accuses of charging higher levies on American goods.

The Trump administration imposed a 29% tariff on Pakistani imports, in addition to a 10% baseline tariff applied to all imports, bring the total tariff on Pakistani products to 39%. In his remarks, President Trump said, “Pakistan has been charging us a 58% tariff on our goods. Hence, we are imposing a 29% tariff on their products.” The baseline 10% tariff will apply from April 5, 2025, with the additional 29% reciprocal tariff, starting April 9, 2025.

A senior official at the Commerce Ministry told the media that the move will reduce Pakistan’s price competitiveness and make it harder to maintain sales in the US market against “lower-tariff countries” such as India and Turkiye.

The penalties announced by Trump triggered a plunge in world financial markets and drew condemnation from other leaders reckoning with the end of a decades-long era of trade liberalisation.

Meanwhile, the notification – issued by the PMO on Friday – also stated the Terms of Reference (ToRs) of the working group.

The committee would guide and supervise the working group on US reciprocal tariffs; deliberate and approve the recommendations presented by the working group; negotiate with US as a major trading partner on as and when required basis; brief the premier on developments/initiatives basis regular regarding related; any other tasks as deemed appropriate by committee chair.

The 12-member committee could also appoint any additional members on need basis. “Ministry of Commerce Division shall notify the working group and provide secretarial support,” it added.

In a notification, the Ministry of Commerce (Textile Wing) said it had called a meeting of stakeholders on Monday “under the chairmanship of Federal Minister for Commerce to discuss the US reciprocal tariffs.”