A prominent Pakistani newspaper has sharply criticised the Shehbaz Sharif government’s trade policy after India and the United States announced a sweeping interim trade agreement, calling Islamabad’s approach to Washington “passive” and strategically inadequate.
In an op-ed published by Dawn, senior trade policy expert Dr Manzoor Ahmad described the India–US trade deal as a major shift in New Delhi’s traditional trade stance and a sign of broader realignments in the global economic order.
According to the joint statement issued on February 6, 2026, the United States agreed to lower its reciprocal tariff on Indian goods from 25% to 18%. In return, India committed to eliminating or significantly reducing tariffs and non-tariff barriers on a wide range of US industrial and agricultural products. India also pledged to purchase $500 billion worth of American goods over the next five years and to stop importing Russian oil.
Dr Ahmad characterised the agreement as a decisive break from India’s long-held protectionist trade posture, arguing that it came close to a capitulation under sustained economic and geopolitical pressure. However, Indian officials rejected this interpretation, stating that New Delhi firmly resisted US demands to fully open its agricultural markets. Commerce Minister Piyush Goyal said the deal fully protects sensitive agricultural and dairy sectors and safeguards farmers’ livelihoods.
The Dawn article warned that the India–US trade pact carries significant implications for Pakistan, which currently faces US tariffs of around 19%. The United States remains Pakistan’s largest single-country export destination, with annual exports exceeding $5 billion and a trade surplus of nearly $3 billion in Islamabad’s favour.
Any restructuring of US tariff regimes or preferential market access for Indian goods, the article noted, could adversely impact Pakistan’s core export sectors, particularly textiles and apparel.
Despite this exposure, Dr Ahmad criticised Pakistan for failing to negotiate a comprehensive bilateral trade agreement with the United States. He argued that successive governments, including the current one led by Shehbaz Sharif, relied on seeking unilateral tariff concessions or limited, symbolic trade arrangements rather than pursuing long-term market access.
“These fig-leaf agreements have delivered little in terms of export diversification or sustained competitiveness,” the article said, adding that Pakistan has become increasingly marginalised in global trade as a result.
The op-ed called for a fundamental rethink of Pakistan’s trade strategy towards the US, urging policymakers to adopt a proactive, structured, and long-term approach.
The criticism comes despite a US-Pakistan trade agreement finalised in July 2025 following negotiations in Washington. That pact included cooperation on developing Pakistan’s untapped oil reserves—primarily in Balochistan, Sindh, Punjab, and Khyber Pakhtunkhwa—as well as commitments on infrastructure investment and collaboration in emerging sectors such as cryptocurrency.
As part of the agreement, Pakistan also withdrew its 5% digital services tax on US firms. While both governments described the deal as historic, critics argue it falls short of addressing Pakistan’s deeper trade vulnerabilities at a time of rapidly shifting global alliances.
Originally published on 24×7-news.com.
