LAHORE: The tariffs imposed by US President Donald Trump have put global trade in a new conflict. The growing trade battle between the United States and China has alarmed the major economies around the world. Due to this uncertain situation, the global stock markets also saw a significant decline in recent times, causing loss of trillions of dollars.
Pakistan, too, could not be protected from this global trade tension. On Monday, the Pakistan Stock Exchange recorded a major decline of five percent. Although there was some rehabilitation in the market later, there is still a sense of trade insecurity globally and can have a negative impact on the domestic economy.
In view of this situation, it is important for Pakistan to adopt an active and wise strategy to protect its exports. The United States has already imposed an additional 29 % additional tax on Pakistani products, which can increase the prices of Pakistani goods in the US market.
The good thing is that the trade balance between Pakistan and the United States is in favour of Pakistan with Pakistan enjoying a trade surplus of three billion dollars. In this situation, the protection of these interests is the primary responsibility of the government and the business community.
In this regard, the decision of the government to send a high -level delegation to the United States to discuss changes in possible tariffs with US trade officials is a positive step. According to estimates, extra tariffs can lose up to $ 1 billion annually to Pakistan. The United States is one of Pakistan’s most important export markets and last year the trade volume between the two countries was $ 7.3 billion.
It is very important for countries like Pakistan to fight for economic stability, to protect themselves from this global trade tension so that the economy can be focused on development. The US and China trade war is certainly a major threat to the global economy. In these difficult situations, it is a major challenge for Pakistan to protect its business interests, without affecting its international relations.
The government’s decision to send a high -ranking delegation to the United States and the policy of negotiating with the United States is a good and viable procedure in the current situation, which can be expected to be positive. From these situations, Pakistan should also learn the lesson that expanding its trade activities rather than relying on just one market in terms of economy and trade is a better strategy.
