KARACHI: As the US has imposed a 10 per cent import tariff on China, industry players believe that exporters mainly need to be more vigilant to tap this opportunity and the government should come out with some incentives for exporters.
The US imposed 10pc tariff on imports from China effective Feb 1 while China reacted with targeted retaliatory duties on US imports. However, the US has paused 25pc import tariffs on Mexico and Canada for a month.
When asked how Pakistan can benefit from the high tariff imposed on China by the US, Overseas Investors Chambers of Commerce and Industry (OICCI) Chief Executive/Secretary General M. Abdul Aleem said, “We think in this fast changing international situation, there are more opportunities for our exporters to be vigilant and smartly seek opportunities as it was recently after the disturbances in Bangladesh.”
He said it is equally important that authorities take a proactive role in ensuring that Pakistan grabs such opportunities now and later. If there is a need to support through policy improvements, these are the times to think aggressively and positively for the country, Aleem added.
Site Association of Industry (SAI) President Ahmed Azeem Alvi urged the government to take advantage of the situation emerging after the US imposed duties on China, Mexico, Canada and other countries.
He suggested that the government should cooperate with Pakistani exporters by reducing taxes, lowering electricity and gas tariffs to decrease industrial production costs to enable exporters to increase their exports to global markets, particularly the USA, and compete in the price race.
“We must not let this opportunity slip under any circumstances. To boost exports, an effective strategy should be formulated in consultation with stakeholders, benefiting not only large-scale manufacturers but also small and medium enterprises (SMEs),” he said, in a statement.
Mr Alvi added that this is an excellent opportunity to benefit from recent US policies. “By exporting our high-quality products to the US, we can secure a significant market share,” he said, adding that exporters require the cooperation of the government and Pakistani commercial attaché in the US, who can assist in securing export orders and ensure the arrangement of B2B meetings with US traders.
“The government should provide relief to export industries for at least one year, which could result in a minimum 30pc increase in exports,” he said.
Published in Dawn, February 9th, 2025
