The United States collected approximately $611 million in tariffs on Pakistani exports in 2024, compared to $157 million in duties Pakistan imposed on US goods, according to an analysis by the Economic Policy Business Development (EPBD) Think Tank.
Pakistan’s exports to the US totalled $5.71 billion last year, with a weighted average tariff of 10.7% applied by the US.
Only 14.8% of these exports entered duty-free, while over half—around 52.9%—faced tariffs. In contrast, Pakistan maintains a simple average MFN duty of 10.3% on imports, with a trade-weighted average of 7.6%.
Textiles remain Pakistan’s dominant export to the US, comprising 77% of the total. This heavy concentration places the sector at risk, especially with the US’s announcement of a new reciprocal tariff policy that could raise duties on Pakistani goods to 29% by 2025.
Despite the looming increase, EPBD notes that Pakistan may gain a strategic edge over competitors like China (facing 245% tariffs), Vietnam (46%), and Bangladesh (37%) under the new policy.
Sectors such as wearing apparel, woven fabrics, food products, and sports goods are projected to benefit from relatively better market access.
For example, in sports goods, Pakistan stands to gain a 17 percentage point advantage over Vietnam, 8 points over Bangladesh, and 216 points over China.
However, India remains a key competitor with a slightly more favorable reciprocal tariff rate of 26%, especially in textiles, where Pakistan faces a sharper hike.
To manage these shifts, the think tank recommended that Pakistan diversify its export portfolio beyond textiles and the US market, improve competitiveness in sectors with lower tariff impacts, and pursue trade diplomacy to secure better terms.
