Prime Minister Shehbaz Sharif has approved a plan to start negotiations with the United States by offering the lower tariffs and increased market share, as a report says customs increases can Pakistan’s exports from $ 564 million to $ 2.2 billion.

The government plans to reduce tariffs on about 55 products by remaining within the World Trade Organization Framework, which would expand the similar benefits as other nations, according to the officials interested in these discussions.

These lowered tariffs would largely be in line with the tariffs that China used according to the bilateral free trade agreement (FTA), sources of Express Pakinomist told. The government has also prepared reaction to non-customs discoveries raised by the US-related ban on X, restrictions on repatriation of profits and other such barriers.

The development came on the day when the improved tariffs in 60 countries came into force, and some Pakistani exporters received “limp requests” from the US buyers.

Tabadlab, a political think tank, reported in a map that the 29% increase in tariffs on Pakistani goods will result in approx. $ 564 million losses in exports to us in the first year 2025-26. Furthermore, it said that the loss in an unlikely worst case can the loss jump to $ 2.2 billion.

Prime Minister Shehbaz Sharif was chairman of a meeting on Wednesday to discuss customs imposed by the United States in the midst of the US -China escalation. Beijing on Wednesday retreated further by introducing an additional 34% duty on US goods and matching the total 104% tasks Washington imposed on the world’s second largest economy.

The United States also imposed an additional 29% duty on Pakistani goods to reverse $ 3 billion trade deficits as it has with Islamabad. Among the US concerns are non-customs barriers to trade and online constraints, including on social media platform-X.

The Prime Minister was presented to the report of the management committee and the working group on the new tariffs imposed by the United States and the proposed future course of action. The meeting was presented with various alternative courses of action.

Last week, PM had put together these committees led by Finance Minister Muhammad Aurangzeb and Trade Secretary Jawad Paul.

A message from the Prime Minister’s office said the government has decided to send a high -level delegation to the United States to promote trade relations and hold conversations about us tarrifs that US President Donald Trump’s administration introduced.

Shearif is tasked with the delegation, which will also include prominent business figures and exporters, to prepare a mutually advantageous course of action for the future, read a statement released by the Prime Minister’s office.

The sources said the government’s plan included seeking reversal of the extra tariffs in return for facilitating the increase in the market share of US imports and lowering customs.

The options include reduction of tariffs of about 55 product lines with great advantages to be offered on cotton, soybean and oil products.

The tariffs about cotton imports are already zero, and the government plans to secure the US authorities for further imports of the item, according to the sources. In this regard, Prime Minister emerged another working group on Cotton, which will end these proposals.

Some of the contours of the approved plan may need cabinet approvals, including from the Cabinet’s financial coordination.

Pakistani authorities were of the opinion that they cannot import goods to make their industries competitive, but will still find an intermediate group to protect its share of the market.

Pakistani Plan includes seeking a turn for the pre-April-4. position or at least reducing the extra tariffs to the levels of its competitors such as Egypt and Turkey, the sources said.

“The US Pakistan trading relationships span decades,” Prime Minister Shehbaz said, adding that the government is eager to further strengthen its trading partnership with the United States.

The meeting was informed that the Pakistani Embassy in the United States is in constant contact with the US government.

Tabadlab lifts curtain

The political think tank has issued a preliminary short report on the consequences of the US Customs War against Pakistan’s economy.

It says estimates suggest that Pakistan’s export loss will amount to around $ 564 million in the next financial year during the new US tariffs potentially increases to $ 2.2 billion over time in the worst case. This would have a negative impact on the deficit on the current accounts, undermine recent progress and put together the country’s fragile economic growth prospects, it added.

In the unlikely worst-case scenario, Pakistan can lose the market share, and domestic demand in the United States is increasingly meeting by local producers, it added.

Tabadlab said its original discussions with exporters indicate that the sector’s low -profit margins make it difficult to absorb increased costs and that US importers are likely to pass on these costs to US consumers. This can lead to a reduction in the amount of textile import to the United States.

Whether Pakistan loses or gets market share in the United States depends largely on how the Pakistani government engages in the Trump administration and how other textile-producing countries react, it added.

Pakistan can’t take advantage

The report says that countries with large domestic markets, strong trade fundamentals and significant diplomatic capital may benefit from the opportunities that Trump administration’s customs are increased.

“However, Pakistan has historically fought in such scenarios. Without urgent and strategically coherent political actions, this moment could be more risk than the opportunity for the Pakistani economy,” it added.

Pakistan’s imports from the United States are small in size and generates limited customs revenue – only $ 85 million in the last financial year.

“For US decision -makers, customs -adjusters alone will not meaningfully increase exports to Pakistan,” Tabadlab said.

The United States also plays a limited role in Pakistan’s primary import categories that account for only 1.4% of these, well below the 4% share across all imports, the report said.

Pakistan imports a mix of goods from the US ranging from cheap raw cotton and scrap metal to pharmaceutical products with high value.

The report says the US claim of an average duty rate of 58% on its exports to Pakistan occurs inconsistently, even when explaining para-tariffs such as regulatory tasks, VAT, bold and income tax collected by the source, which are not traditional customs duties.

But Tabadlab said Pakistan uses Para -Told as a tool to generate revenue and “this may represent a area of ​​weakness in negotiations with the United States because other countries may not have similar fees used for imports into the port”.

Taken cumulatively, for decision makers, this makes this tale of fair tariffs for a more challenging sale, it added.

Non-duty barriers

Non-customs barriers may appear as a potential point of friction in US-Pakistan trade relations, according to Tabadlab. It said these include the use of statutory regulatory orders to manage specific import elements and restrictions on US digital platforms such as X. While the Ustr report does not accuse Pakistan of targeted barriers to the United States or for currency manipulation, it signalizes areas of concern.

Some significant sectors where the United States is currently exporting goods, but facing significant customs protection in Pakistan includes vehicles with 76% duties, furniture 27% duties, edible fruits and nuts 22% duty and paper 19%, according to the brief. Any change on this front requires the Pakistani government to change its sector policy, it added.