PM Constitutes 12 Member Committee to Negotiate with US on Tariff

Prime Minister Shahbaz Sharif has constituted a committee that will advise the PM on US tariffs and what Pakistan offers to the US for negotiations regarding tariff concerns. The PM has constituted a committee of 12 members that will advise and deal with the US tariff. Their task will be to advise the PM about a better deal with the US for trade amid tariffs and what Pakistan can offer to the US to withdraw tariffs or to reduce them.

The notification says that "Prime Minister [Shehbaz Sharif] has been pleased to constitute a steering committee for in-depth analysis and policy responses to recently announced US reciprocal tariffs," stated a notification issued by the Prime Minister's Office (PMO) on Friday. The 12-member committee includes the finance minister, commerce minister, petroleum minister, special assistant on industries, Federal Board of Revenue Chair, Foreign Affairs Secretary, Pakistan Ambassador to the US Rizwan Saeed Sheikh, Ambassador of Pakistan to the World Trade Organization (WTO) Ali Sarfaraz Hussain, former WTO envoy Dr. Manzoor Ahmad, Ijaz Nabi, Minister of Trade and Investment, Washington DC, and Secretary of Commerce."

Moreover, it is important to mention that the US has already started to collect a standard tariff of 10% from all countries for importing their goods and services to the US. Additionally, the 29% tariff that was announced for Pakistan's exports to the US would start on the 9th of April, and it is hoped that Pakistan would have a blueprint of the deal that Pakistan would present to the US to negotiate with the US. Moreover, the US has published a trade report of Pakistan that states the US is not happy with Pakistan's customs regulations and its revenue model. The US states that it is not a fair model, and it impacts US trade with Pakistan. 

However, one strategic idea for tackling US tariffs is that any country that is exporting its goods to the US must utilize or consist of US-origin raw material at least more than 20% to bypass US tariffs, which can be a game-changer for the textile industry in Pakistan. Moreover, Pakistan is a regular importer of cotton from the US, which can help the textile industry to tackle the issue of tariffs and increase exports or maintain them at the current level. The finance minister hoped that the suggested committee would come up with the idea before April 9th and present the idea or strategy to the US to negotiate on tariffs.