Islamabad:
When Pakistan struggles with an expanded trade deficit, rising unemployment and an emigration of multinational businesses, experts call on the government to adopt a more aggressive protectionist approach – similar to US President Donald Trump’s “America First” strategy – to protect domestic production.
Trump’s economic policy, which was very dependent on import tariffs and punitive measures against US companies outsourcing production, was cited by analysts Shahbaz Rana and Kamran Yousaf in Express News Show “The Review” as a model worth emulating.
“We want to build, create and grow more products in our country using American labor, US goods and American gravel,” Trump said in a speech on July 17 in the White House as he started “Made in America” week in his push for “America First” approach.
Trump did not just stranger American industry – he forced it back on land through customs and threats of action, the analysts said, adding that Pakistan has to do the same if we want to avoid financial collapse. “We have to follow Trump’s strategy: protect Pakistan’s local industry.”
Pakistan’s trade deficit increased by 33% in just three months and reached $ 9.4 billion, according to official data. Meanwhile, larger companies such as Procter & Gamble, Telenor, Microsoft and Gillette have either closed the operation or scaled significantly.
The analysts attribute this fall to a combination of sudden customs reductions, rising costs of doing business and a lack of protection against dumped imports, especially from China. In June, the government cut import tasks overnight, a step that critics say left local producers vulnerable to heavily subsidized and underpriced import.
Sectors that hit hardest include steel, paper and table, electronics, pharmaceutical fabrics, building materials, textiles and food packaging. Industry organs report that Chinese exporters routinely change product specifications to bypass existing anti-dumping measures, which flood the market with almost identical goods at prices under the market.
Efforts to fight dumping have also been stymed by legal obstacles, according to analysts. Although the National Tariff Commission (NTC) has imposed duties in several cases, producers complain that enforcement is weak due to long -term legal battles and judicial interference. “When duties are imposed, cases are drawn into courts, sometimes for years,” the analysts said.
“Even after the final decisions, enforcement remains uncertain,” the analysts said, describing “unreasonable dumping as a death sentence for Pakistani industries.”
A recent IMF report on Pakistan’s judicial system found commercial disputes that clogged courts with a slow judge who harms the investor’s confidence and policy enforcement.
Local producers also point to structural disadvantages that prevent them from competing fairly:
• High tax burden: Corporate tax is 29%, with an additional 10%super tax and dividend tax, with the total effective tax burden over 50%.
• Expensive utilities: Electricity and input costs in Pakistan remain significantly higher than at regional competitors.
• Problematic Trade Agreements: Free Trade Agreement (FTA) in 2005 (FTA) with China – and its extended Phase II signed in 2019 – opened Pakistani markets to foreign goods without adequate security measures for local industries.
As domestic companies shut down, unemployment continues to climb. The World Bank has attributed rising poverty in Pakistan to a failed economic model that prioritizes trade in industrial development.
Analysts warn that when local businesses leave the market, importers who originally dumped cheap goods often migrate prices, create monopoly and contribute to inflation. “This is a classic domino effect,” the analysts said. “First comes deindustrialization, then job loss and eventually long -term financial dependence on imports.”
Industrial leaders urge Prime Minister Shehbaz Sharif’s government to take immediate corrective actions. The recommendations include reconstruction of customs protection for vulnerable sectors; Strength NTC with faster enforcement mechanisms; Reforming the commercial legal system to prevent infinite litigation; Revision of trade agreements that expose local producers to unreasonable competition; and the publication of the IMF’s Judicial Department Report to increase transparency and accountability
“There is a clear choice for the government,” the analysts said. “We continue down the road to fuel to foreign industries and kill jobs at home – or are we taking bold steps to build a production economy and protect national economic sovereignty?”
The analysts said that if we want Pakistan to survive financially, we must follow Trump’s strategy – not in words, but in harsh, unapologetic action.
