• Study by Pakistan Institute of Development Economics says US policy should serve as ‘wake-up call’ for export diversification
• Warns tariffs may cost textile sector half a million jobs; leather, rice, surgical instruments, sporting goods also vulnerable

ISLAMABAD: The increase in trade tariffs on Pakistani products announced by US President Donald Trump — later suspended temporarily — could have a devastating impact on Pakistan’s important exports and serves as a wake-up call for diversification, according to a state-owned think tank.

“A storm may be brewing on Pakistan’s trade horizon,” said the Pakistan Institute of Development Economics (Pide), adding that the “proposed reciprocal tariffs by the United States could have a devastating impact on the country’s export sector”.

In a stark policy note, the institute cautioned that these tariffs could lead to macroeconomic instability, significant job losses and a critical reduction in foreign exchange earnings.

The study, titled ‘Impact of Unilateral Tariff Increase by United States on Pakistani Exports’ and conducted........

© Dawn Business