Pakistan is executing a pragmatic strategy to rebalance its global trade profile, focusing on a strengthened partnership with the United States. Recent agreements leverage current geopolitical shifts to provide Pakistan with immediate economic benefits.
The cornerstone of this shift is a bilateral trade agreement with Washington, which reduces US tariffs on Pakistani textile and leather exports to a reciprocal 19%, securing the lowest regional rate. This follows the US imposing additional 25% tariffs on Indian goods, creating a competitive advantage for Pakistan in its largest export market.
Beyond textiles, the partnership now includes a $500 million strategic minerals framework, highlighted by Pakistan’s first shipment of enriched rare earth elements and critical minerals such as antimony and copper concentrate to US Strategic Metals (USSM). This initiative strengthens global supply chain security and positions Pakistan as a reliable partner for US advanced manufacturing and green energy technologies.
Pakistan is also managing the evolution of the China-Pakistan Economic Corridor (CPEC), pushing for Phase 2.0 to shift from infrastructure debt to industrial cooperation and export-oriented growth. By combining US investment, leveraging trade advantages, and steering CPEC toward exports, Pakistan aims to become a balanced, resilient regional manufacturing and export hub.
"By securing strategic partnerships and leveraging regional opportunities, Pakistan is positioning itself as a key player in global trade and regional stability."
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