Pakistan Maintains Positive Trade Balance with US, Registers $2.5 Billion Surplus

Strategic Insights -

Despite facing challenges posed by reciprocal tariffs, Pakistan's trade balance with the United States remains positive, with a trade surplus of $2.5 billion in the first three quarters of the 2024-25 fiscal year. According to Finance Minister Senator Muhammad Aurangzeb, Pakistan's exports to the US valued at $4.4 billion, while imports stood at $1.9 billion during this period. The minister also shared data for the previous fiscal year 2023-24, where Pakistan's exports to the US were $5.3 billion, compared to imports of $2.2 billion, resulting in a trade surplus of $3.1 billion. Aurangzeb emphasized the importance of the key Pakistani exports to the US, including garments, medical instruments, and PET-bottle grade materials, and highlighted the need for a strategic response to address the challenges posed by the 29% reciprocal tariffs imposed by the US.

Key Takeaways:

  • Pakistan has maintained a positive trade balance with the US for the first three quarters of the 2024-25 fiscal year, with a trade surplus of $2.5 billion.
  • Pakistan's exports to the US valued at $4.4 billion, while imports stood at $1.9 billion during the first three quarters of the 2024-25 fiscal year.
  • In the previous fiscal year 2023-24, Pakistan's exports to the US were $5.3 billion, compared to imports of $2.2 billion, resulting in a trade surplus of $3.1 billion.
  • Key Pakistani exports to the US include garments, medical instruments, and PET-bottle grade materials.
  • Major imports from the US comprise cotton, iron and steel scrap, computers, petroleum products, soybeans, and almonds.
  • The 29% reciprocal tariffs imposed by the US on Pakistani imports pose a significant challenge to trade relations.
  • Pakistani exporters have expressed concerns over the tariffs, but some see an opportunity to increase exports to the US due to higher tariffs on competing countries.
  • A Steering Committee and a working group have been formed by the Prime Minister to assess the situation and formulate policy responses.
  • The Ministry of Commerce is collaborating with various ministries, departments, exporters, and stakeholders to develop a strategy for engaging with US authorities on this matter.

Statistics:

  • Pakistan's exports to the US valued at $4.4 billion in the first three quarters of the 2024-25 fiscal year.
  • Imports from the US stood at $1.9 billion during the same period.
  • The trade surplus between Pakistan and the US was $2.5 billion in the first three quarters of the 2024-25 fiscal year.
  • In the previous fiscal year 2023-24, Pakistan's exports to the US were $5.3 billion, while imports were $2.2 billion.
  • The 29% reciprocal tariffs imposed by the US on Pakistani imports are set to be temporarily suspended for 90 days.

Sources:

  • Written response by Finance Minister Senator Muhammad Aurangzeb to a question in the National Assembly of Pakistan.