In view of Pakistan’s diplomatic strategy during the US-Iran War, Pakistan’s business community has urged the federal government to negotiate with the Trump Administration to waive off the reciprocal tariffs. The business community has also insisted the completion of the Iran-Pakistan Gas Pipeline (IP) to resolve the energy crisis. It is estimated that the 19% US tariff is likely to reduce Pakistan’s annual exports by over 1 billion USD, and the textile sector shall have to bear 80% of the loss, as the US is the top destination of Pakistani exports, which are over 1 percent of Pakistan’s GDP.
Mian Zahid Hussain, the Chairman of the Policy Advisory Board (PAB) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) told Daily Times, that it was projected that the current account of the ongoing fiscal year would remain surplus despite the soaring trade deficit, due to remittance inflows, however the US-Iran War has refuted the entire bundle of projections, as the remittance inflows from the Middle East seem risky in the longer run, whereas, the trade deficit in April 2026 is hitting 46-months high of about 4 billion USD. Nevertheless, there is a silver lining for Pakistan due to her diplomatic role in the US-Iran Ceasefire, which brings the ball in her court. Thus, it is about time, that Pakistan should ask for the tariff waiver from the United States, he urged the government.
Rehan Hanif, the President of the Karachi Chamber of Commerce and Industry (KCCI) told the Daily Times, that in a meeting with the Finance Minister Muhammad Aurangzeb, a day before his Washington’s recent visit, the KCCI leadership insisted him to finesse a deal for the reduction of US tariffs on Pakistan by at least 5 to 7 percent, along with the easing of stance on Iran-Pakistan Gas Pipeline (IP). “I am sure that both of these issues had been the part of the negotiations that took place in Washington, and I am hopeful, some positive developments are coming on board.” Hanif affirmed.
While, highlighting the significance of the Iran-Pakistan (IP) Gas Pipeline, Rehan Hanif expressed, that the completion of the Iran-Pakistan Gas Pipeline would bring industrial revolution in Pakistan with a notable slash in the cost of doing business, along with reduction in RLNG import bill. IP shall also induce a positive impact on country’s power generation and captive power scenario. Rehan Hanif articulated, that the KCCI did not ask the FinMin to tact for easing the IMF conditions or issuance of cheaper loans, instead the KCCI asserted, “We want trade, not aid.”
Albeit, Pakistan has got ‘all the cards’ in the wake of the US-Iran War and ahead of Trump’s China visit, whereas, Pakistan’s Commerce Ministry is also holding the meetings with the US Commerce officials to advance trade cooperation between Pakistan and the United States. Nonetheless, the only thing that matter is, what the Pakistani leadership is going to demand, and what Pakistan is going to get. Shall the current leadership catch a bigger fish to fry, or concur with a drop in the bucket. The future of the South Asian nation seems to be Que Sera Sera.