Trade may be diverted in Pakistan’s favour due to tariffs on BD, Vietnam, China
April 11, 2025
Pakistani economists warn that the newly imposed US tariffs could have a significant impact on Islamabad’s exports. Initially, the effects might be relatively contained, but if the tariffs persist, they could lead to a more substantial decline in exports over time. This potential downturn is attributed to the tariffs’ influence on Pakistan’s trade balance and overall economic performance.
According to a Lahore School of Economics policy paper written by Dr Azam Amjad Chaudhry, Professor and Dean, Faculty of Economics, and Dr Gul Andaman, Teaching and Research Fellow, Innovation and Technology Center, with Bangladesh, Vietnam, and China facing even higher tariffs, there may be some trade diversions in Pakistan’s favour. Moreover, US buyers might negotiate for Pakistani exporters to absorb part of the tariff, further softening the blow to the country’s exports to the US.
Read more »Labels: Dr. Azam Chaudhry, Economy, Export, Global Economy, Import, Lahore School, Pakistan, Research, Tariffs, Trade Division, US
posted by S A J Shirazi @ 4/11/2025 09:11:00 AM,
US tariffs can cost Pakistan $4.2b in 5 years
April 10, 2025
The United States' recent decision to impose a 39% tariff on imports from Pakistan could lead to a significant drop in Pakistan's export revenues, with estimates suggesting a potential decline of up to $0.8 billion in calendar year 2024 alone.
As per a policy note released by the Lahore School of Economics (Lahore School) on Wednesday, over the next five years, this loss could accumulate to as much as $4.22 billion if the full burden of the tariff is passed on to American consumers. However, the actual impact might be less severe if Pakistani exporters absorb part of the tariff cost or negotiate with US buyers to share the burden.
Read more »Labels: Dr. Azam Chaudhry, Economy, Export, Global Economy, Import, Lahore School, Pakistan, Research, Tariffs, Trade Division, US
posted by S A J Shirazi @ 4/10/2025 12:03:00 PM,
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