Pakistan is expected to incur a loss of approx. $ 1 billion following the introduction of a 29% duty from the United States on Pakistani Goods, according to a report released by Pakistan’s Ministry of Commerce.

Despite this customs, the United States is expected to continue to face a $ 2 billion deficit deficit with Pakistan.

The document outlines the potential impact of the new customs on the trade relationship between the two countries. It notes that trade volume between Pakistan and the United States reached $ 7.3 billion in the last financial year. The United States exported goods of $ 2.1 billion. Dollars to Pakistan, reflecting an increase of 4.4% from the previous year.

On the other hand, Pakistan’s exports to the United States in 2024 accounted for $ 5.1 billion, marking an increase of 4.9% from 2023.

The textile and clothing sector remains Pakistan’s largest export to the United States, which accounts for 55% of total exports. The information technology sector also experienced strong growth in which exports to the United States exceeded $ 1 billion in 2024.

The document warns that the 29% duty will significantly affect Pakistan’s textile exports, which potentially makes them more expensive and reducing demand.

Furthermore, the tariff is expected to aggravate Pakistan’s trade deficit with the United States and can create challenges in finding alternative markets for products such as rice and textiles. Pakistan’s total exports could fall by 10-15% as a result of the new customs.

In response to these potential challenges, the Ministry of Commerce has emphasized the urgent need for trade negotiations between Pakistan and the United States to mitigate the negative effects of the tariff and work towards a decision.