According to sources, the Pakistan Textile Council (PTC) has urged Prime Minister Shehbaz Sharif to immediately and proactively use all available diplomatic, strategic, and trade channels to engage with the US administration and negotiate a reduction in reciprocal tariffs, bringing Pakistan’s tariff rate down to around 10 percent.
According to the request sent by the PTC to the Prime Minister, the timely reduction in electricity prices for industry and the cut in the Export Refinance Facility (ERF) rate have sent a strong and much needed signal of the government’s commitment to sustaining exports and employment, especially under the current challenging economic conditions.
The council also appreciated the Prime Minister’s earlier swift action in initiating high level engagement with the United States after reciprocal tariffs were imposed on several trading partners. However, recent international developments have made the issue more urgent. After prolonged negotiations between the United States and India, India’s reciprocal tariffs were reduced from 50 percent to 18 percent, along with a broader trade, energy, and strategic package. As a result, India has gained a tariff advantage of about one percent over Pakistan in the US market.
This gap carries greater weight at a time when the cost of doing business in Pakistan is already higher than in India, particularly due to taxes, energy costs, and inefficient raw material supply. In labor intensive sectors such as textiles and garments, this difference has a direct impact on pricing, buyer preferences, and long term orders.
According to the PTC, a reduction in reciprocal tariffs would help Pakistan maintain competitiveness in the US market, protect export earnings and jobs, and strengthen the confidence of US buyers despite global economic uncertainty.
The council also offered full cooperation to the government and said it is ready to provide industry based analysis and advice for any engagement or coordination with US delegations.
