Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has urged the government to help Pakistan fully capitalize on its uniquely low tariff rates for exports to the United States compared to other countries in the region. However, he warned that high production costs, driven by steep taxes and elevated electricity and gas prices, threaten to undermine these advantages.
Sheikh noted that the United States currently applies the lowest tariff on Pakistani products among regional competitors, with Pakistan facing a 19 percent US tariff. In comparison, Indian products are subject to a 50 percent tariff, while goods from Bangladesh and Vietnam face a 20 percent tariff. He emphasized that this relatively low tariff presents a significant opportunity for Pakistani exporters, particularly those in the textile sector.
Despite this competitive edge, the FPCCI President highlighted that high production costs are eroding potential gains. Taxes and high energy prices pose major barriers, making it difficult for Pakistani industries to benefit from favorable tariffs. Sheikh appealed to the government to take immediate action by reducing energy prices for the industrial sector, allowing exports to the US to grow, especially in textiles, where the country already has a strong foothold.
He further stated that increasing exports to the United States, Pakistan’s largest trading partner, should be seen as a golden opportunity. To make the most of this potential, he called for enhanced investment in export-oriented sectors and the creation of a more welcoming environment for foreign direct investment. Sheikh recommended adopting sustainable policies, implementing single-digit interest rates, and engaging in long-term planning as key steps to overcoming current challenges and attracting more international investment to drive growth.
