State Bank of Pakistan (SBP) Governor Jamil Ahmed said on Monday that the Slide recently helped Pakistan with the full impact of the proposed American tariff in global oil prices.
Announcing a 90-day stop on tariffs last week, Trump said that after negotiations from more than 75 countries, he decided that there was no retaliation against the US and against the US. Earlier, he imposed 29% tariffs on Pakistani exports to the US.
Speaking Live news The program “Today Shahzeb Khanzada Kay Sat”, SBP governor said: “(Pakistan’s) total exports to the US are $ 5.2 billion and of which are $ 4.2 billion textile products.”
He said that American tariffs would clearly affect the textile sector, saying that its effect would be “inherent”.
The SPB Governor’s view was that the effect of falling in oil prices would be larger than the American tariff on Pakistan’s economy. “We are expecting an overall positive impact from the American tariff,” he said.
Ahmed further said that the government and SBP would support industries if they face a significant impact.
For another question, he said that Pakistan’s current account is expected to improve in March compared to previous months. He said, “We are in the process of finalizing the number. Generally, it is finalized until the 20th of each month,” he said.
Referring to an increase in export and remittance, he said that he was earlier hoping that the current account would be more than 0.5% or minus of GDP at the end of FY 25, but now he can say that it will remain surprise.
He said that the total dispatch for FY25 is expected to be around $ 38 billion. The Governor of SBP further said that foreign exchange reserves are expected to reach $ 14 billion by June this year.
Earlier today, the Governor of SBP reflects the path for economic progress and a permanent and inclusive economic development, stating that Pakistan made noticeable progress on macroeconomic front and the country’s economy is gaining momentum.
Addressing the Gong ceremony held here at the Pakistan Stock Exchange (PSX), he commented to celebrate the Pakistan Financial Literacy Week 2025.
He said that in March 2025, workers’ remittances reached a high level of $ 4.1 billion-partially to encourage the channel and SBP’s results to encourage the channel’s channeling through formal channels, as well as smooth functioning of the domestic FX market. He said that the total dispatch for FY 25 is expected to be around $ 38 billion.
The Governor shared important initiatives under the National Financial Inclusion Strategy (NFIS) 2024-28, which included efforts to increase financial inclusion from 64% to 75% by 2028 by 2028, reducing gender differences.
‘25% Pakistan’s exports declined’
On the other hand, the Pakistan Institute of Development Economics (PIDE) warned that 29% mutual tariff imposed by US President Donald Trump is likely to hit Washington’s exports to Islamabad, resulting in a decline of 20–25%, which is an annual loss between $ 1.1 billion to $ 1.4 billion, on Monday.
What can be said as a storm on Pakistan’s trade horizon, the pide has stated that mutual tariffs proposed by the US can have a disastrous impact on the country’s export sector.
In a Stark Policy Note issued on 13 April 2025, the institute warned that these tariffs may lead to a significant economic instability, significant job loss and significant decrease in foreign exchange income.
Dr. Muhammad Jation, Dr. Shujaat Farooq and Dr. Usman Kadir’s study – Analysis analyzes the results of a proposed 29% mutual tariff on Pakistani exports to the US. When the current 8.6% of the most preferred nation (MFN) is added to the tariff, the total duty can reach 37.6%.
Exports to the US will have a decline of 20–25%, which translates into an annual loss of $ 1.1–1.4 billion, with the brunt of the textile area shock.
“Business is not a zero-margins. “In the pide, we see this moment not only as a danger, but as a catalyst – more flexible, diverse and strategic exports for Pakistan to improve the future.”
In the financial year 2024, Pakistan exported $ 5.3 billion goods to the United States, making it the country’s largest single-country export market. A significant part of these exports was textiles and costumes, already with tariffs up to 17%.
If proposed tariffs are applied, Pakistan’s price competition will be severely erased, possibly regional competitors such as India and Bangladesh are allowed to occupy market share. Economic results will be beyond the textiles.
