Pakistan enjoys a bilateral trade surplus
with the United States, with the trade volume
crossing $7 billion in 2023
Staff Reporter
Karachi: Mr. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), announced that Pakistan enjoys a bilateral trade surplus with the United States, with the trade volume crossing $7 billion in 2023. In the first ten months of 2024 (January–October), the figure reached $6.3 billion, reflecting steady growth.
Potential to Double Trade Volume
Mr. Sheikh expressed optimism about doubling the trade volume in the near future, citing the growing demand for Pakistani products in the U.S., rising information technology (IT) exports, and anticipated diversification of export categories.
Consultations for Export Growth
He shared that Pakistan’s Ambassador to the U.S., H.E. Rizwan Saeed Sheikh, has initiated consultations with FPCCI to explore strategies for exponential export growth. Minister for Trade & Investment at the Pakistani Embassy in Washington, Mr. Hanif Channa, provided a detailed briefing on outreach initiatives targeting the U.S. Congress, Senate, federal administration, and states for enhanced trade ties.
GSP Program and Sectoral Opportunities
President FPCCI urged exporters to leverage opportunities presented by the anticipated renewal and expansion of the U.S. Generalized System of Preferences (GSP) program. While 55% of Pakistan’s exports to the U.S. are textiles, IT exports have surpassed $1 billion, showcasing the sector’s potential.
Diversification Beyond Textiles
Senior Vice President FPCCI, Mr. Saquib Fayyaz Magoon, emphasized the need for diversification, urging a focus on IT, pharmaceuticals, jewelry, and human resource exports. He highlighted the importance of maintaining quality, standards, and compliance while advocating for regionally competitive business costs, especially in financing and electricity tariffs.
Leveraging the Pakistani Diaspora in the U.S.
Ambassador Rizwan Saeed Sheikh highlighted the economic significance of the 1-million-strong Pakistani-American diaspora. Key contributions include:
- Pakistan’s position as the largest importer of American cotton.
- 40,000 Pakistani doctors practicing in the U.S., with 5,000 nurses soon to follow.
- Ongoing contributions from pharmacists and other professionals.
The Ambassador also emphasized the strategic partnership between Pakistan and the U.S. in defense and counterterrorism and the consistent inflow of foreign remittances from the U.S.
Economic Diplomacy as a Path Forward
Highlighting the economic scale of California and Texas, Ambassador Sheikh underscored the potential for deeper business-to-business (B2B) relations. “Economic diplomacy can achieve what seems impossible in political diplomacy,” he concluded.
