Karachi, April 28, 2025 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed serious concern over the United States’ recent decision to impose a 29% tariff on Pakistani products, warning of a profound impact on the country’s export sector.
Speaking to APP, the President of FPCCI emphasized that the US remains Pakistan’s largest trading partner, and such measures could severely undermine the progress made in bilateral trade relations over the past 70 years.
The FPCCI President urged the US government to reconsider its decision, highlighting that strong economic ties are beneficial for both nations. He stressed that Pakistan has been working diligently to boost its exports by formulating progressive economic policies, and any disruption in US-Pakistan trade relations would adversely affect these efforts.
Commenting on domestic economic challenges, the FPCCI President pointed out the need to expand Pakistan’s narrow taxpayer base. He advocated for formalizing the large informal economy through strict law enforcement and greater transparency, which he believes would enhance public confidence and improve tax compliance.
Addressing the industrial sector’s needs, the FPCCI underscored the importance of promoting key industries such as textiles, agriculture, and information technology. Producing high-quality goods that align with international standards, particularly for markets like the USA, is essential for sustaining and expanding exports. Furthermore, he recommended that Pakistan diversify its trade footprint by targeting new markets in Africa, Central Asia, and Europe, suggesting that mobilizing trade missions and offering incentives to exporters could accelerate this goal.
On the issue of reducing import dependency, the FPCCI President stressed the importance of strengthening local industries. Promoting small and medium-sized enterprises (SMEs) through financial incentives, tax breaks, and easier access to credit could generate employment and help balance trade deficits.
He also highlighted the need to address Pakistan’s energy challenges by investing in renewable energy sources such as solar, wind, and hydro-power, which would support industrial growth and reduce production costs.
Regarding privatization, the FPCCI maintained that the private sector’s efficiency and profitability can attract foreign investment and improve the country’s foreign exchange reserves. Moreover, he emphasized that economic development is closely tied to an improved education system, particularly in technical and vocational training, to equip the youth with practical skills for industry demands.
The FPCCI concluded by stressing that sustainable economic growth requires consistent long-term policy implementation, coupled with poverty alleviation initiatives focused on healthcare, education, and public welfare.