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Ambassadors

Strengthening Bilateral Trade and Economic Relations Between the US and Pakistan

Strategic Insights

— 1 min read

Acting United States Ambassador Natalie A. Baker led a high-level delegation to Lahore, Pakistan, to engage with the All Pakistan Textile Mills Association (APTMA) on opportunities for collaboration in the cotton and textile sectors. The discussions aimed to strengthen bilateral trade and economic relations between the two countries, with a focus on expanding trade and investment in key areas. APTMA Chairperson Kamran Arshad emphasized the significant potential for growth in Pakistan's textile and apparel industries, citing the country's exports to the US, which stood at $5.12 billion in 2024, with 77% of those exports being textile and apparel products.

Key Takeaways:

  • The US is Pakistan's largest cotton supplier, with Pakistan importing $2.14 billion worth of goods from the US in 2024, including over $700 million of cotton.
  • Domestic cotton production in Pakistan has declined sharply over the years, making the country reliant on imports.
  • Pakistan's textile sector faces challenges, including the withdrawal of the Regionally Competitive Energy Tariff for both electricity and gas.
  • APTMA proposes the development of a mechanism to import US cotton under the GSM-102 programme, backed by export proceeds from Pakistan's textile products to the US.
  • The US could facilitate the entry of international seed companies equipped with transgenic technologies, as well as the introduction of improved, genetically modified, and certified seed varieties.

Statistics:

  • Pakistan's exports to the US stood at $5.12 billion in 2024, with 77% being textile and apparel products.
  • Pakistan imported $2.14 billion worth of goods from the US in 2024, including over $700 million of cotton.
  • Domestic cotton production in Pakistan has declined sharply over the years.
  • Pakistan's textile sector faces challenges, including the withdrawal of the Regionally Competitive Energy Tariff for both electricity and gas.

Sources:

  • Country Report: Pakistan's Textile Sector Faces Challenges (Dawn, no date)
  • US Embassy in Pakistan: Acting US Ambassador Meets APTMA Leaders (US Embassy in Pakistan, no date)
  • Pakistan Textile Industry: A Sector in Flux (Business Recorder, no date)

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