Pakistan Urged to Capitalize on Lowest US Tariffs, Says FPCCI President
Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has called on Pakistan to fully capitalize on the lowest US tariffs offered to any country in the region. He emphasized, however, that high production costs—caused by steep taxes and the elevated prices of electricity and gas—threaten to negate this significant advantage and hinder Pakistan’s export potential.
Sheikh noted that the United States has imposed a 19 percent tariff on Pakistani products, which is lower than the tariffs on neighboring competitors like India at 50 percent, and Bangladesh and Vietnam at 20 percent each. Despite this favorable position, he warned that Pakistan’s industries struggle to benefit due to higher operational costs compared to these countries.
According to the FPCCI President, taxes and soaring energy prices form the primary barriers preventing local industries from leveraging the lower tariff rate for greater exports. He urged the government to act quickly, calling for an immediate reduction in electricity and gas prices for the industrial sector. Reducing these production costs, he argued, could lead to a significant increase in exports to the US, especially in the textile sector, as the US remains Pakistan’s largest trading partner.
Sheikh also highlighted the critical need for increased investment in export-oriented sectors. He stressed that Pakistan must create a favorable environment for foreign direct investment by implementing lower tariffs, maintaining single-digit interest rates, introducing sustainable policies, and engaging in long-term planning.
He concluded that with the right government support and industry reforms, Pakistan could seize this valuable opportunity to expand exports and strengthen its economic standing in the region.
