Finance Minister Aurangzeb calls for strategic dialogue, says crisis could spark deeper ties with Washington
ISLAMABAD: Framing a looming trade challenge as a window for opportunity, Finance Minister Muhammad Aurangzeb has said Pakistan is ready to turn the recent US tariff hike into a chance for renewed engagement and long-term economic cooperation with Washington.
Speaking at a press conference in Islamabad on Saturday, Aurangzeb underscored that the 29% tariff imposed by the US on Pakistani exports—set to fully kick in by April 9—should not just be seen as a setback but as a moment to reset and strengthen trade ties.
“We want to make sure that our representations reflect a medium- to long-term view—a win-win for both Pakistan and the United States,” Aurangzeb said.
The finance minister’s comments came as Pakistan braces for one of the most severe tariff hikes in its trading history with the US. The 29% levy, introduced by former US President Donald Trump, marks a dramatic increase from the 10% baseline rate that took effect April 5. The move has sent shockwaves through global markets, with developing economies feeling the heat.
For Pakistan, whose $5.44 billion in annual exports to the US—primarily driven by its textile sector—represent a critical lifeline, the tariff spike poses serious economic implications.
Yet Aurangzeb, a seasoned banker turned policymaker, stressed that Islamabad is responding with a comprehensive, strategic plan. He noted that the United States remains Pakistan’s largest export destination and a key strategic partner, and that the government is keen to engage constructively rather than react defensively.
To that end, Prime Minister Shehbaz Sharif has formed two key bodies: a high-level steering committee chaired by Aurangzeb and comprising ministers, business leaders, academics, and senior officials; and a working group led by the commerce secretary to formulate technical recommendations.
“You should never let a good crisis go to waste,” the finance minister said, citing the opportunity for structured negotiations and potential trade concessions.
Aurangzeb confirmed that the recommendations will be finalized in the coming days and presented to the prime minister for approval. A high-level delegation will then travel to Washington to deliver Pakistan’s proposal and engage in diplomatic discussions ahead of the April 9 tariff enforcement deadline.
“We remain constructively engaged with our US counterparts and are hopeful this challenge can open the door to deeper, long-term cooperation,” he concluded.
