KARACHI: Businessmen are initially delighted over Donald Trump’s win in the US election, hoping that Pakistan is likely to benefit in case the US raises import tariffs for many countries, followed by low freight and oil prices in case two wars come to an end as desired by the upcoming US president.
Pakistan Business Council (PBC) Chief Executive Officer Ehsan Malik said the “America First” theme will likely dictate Trump’s policies more forcefully than hitherto, especially if the Republican Party has the majority in both houses.
He believed that the US manufacturing sector would receive the highest incentives. Tariffs on some imports and goods sourced from Chinese plants relocated elsewhere will be raised.
The PBC chief added that “as there are hardly any such plants in Pakistan, I doubt if textile exports from Pakistan will be affected by tariffs.”
He said lower taxes in the US will likely trigger demand, which will be a positive sign for Pakistani exports.
Mr Ehsan said governments in the US do not direct companies on which countries to invest in. So, a change in the White House is unlikely to result in higher outward investment from the US or foreign direct investment into Pakistan.
“To attract local and foreign investments, the government needs to improve the investment climate and security and reduce tax and energy costs,” the PBC CEO concluded.
Karachi Chamber of Commerce and Industry (KCCI) President Mohammad Jawed Bilwani referred to Trump’s positive vibes from pre-election speeches relating to no income tax, raising import tariffs, ending the Ukraine-Russia war and finding a solution for the Israel-Palestine war.
“If the new US president makes this happen, then Pakistan will certainly benefit as the end of two wars will certainly bring down shipping freight, oil prices, raw material and finished goods prices etc,” he hoped.
He said increasing tariffs on imports from China, Iran, India and Turkiye would also open new business avenues for Pakistani exporters.
Federation of Pakistan Chamber of Commerce and Industry (FPCCI) President Atif Ikram Shaikh hoped that Trump would further broaden and strengthen the relationship between Pakistan and the US.
He desired that both Pakistan and America would seriously try to bring out their relationship from a crisis.
He believed that Americans trusted Donald Trump’s leadership, and his win also suggests that Americans believe in democracy and independence.
The FPCCI chief hoped that Trump would play a key role in bringing peace by resolving ongoing differences in the world.
“Trump has received this huge mandate owing to his criticism over the ongoing wars,” he opined.
Published in Dawn, November 7th, 2024
