Pakistan secured relatively better deal: Finance Advisor
According to Khurram Schehzad, Advisor to the Finance Minister: 'No other country in South or Southeast Asia has received a deal offering such low tariffs and the kind of investment prospects that Pakistan has been offered by the US'
Schehzad was referring to US President Donald Trump's executive order, which introduced tariffs on exports from dozens of trading partners, including a revised 19 percent tariff on Pakistani goods, down from the previous 29 percent. The announcement came a day after the two countries finalized a trade agreement.
Analysts see major economic gains in Pakistan's trade deal with US
According to the executive order outlining the new tariff structure, Pakistan will face a 19 percent tariff rate as Trump's tariff deadline takes effect on August 1.
Speaking at the launch of the Institute of Cost and Management Accountants of Pakistan (ICMAP)'s Budget 2025-26 Compendium titled 'Insights, Analysis and Impact', Schehzad said the US has committed to investing in Pakistan's oil and gas sector—a critical area, as energy currently constitutes nearly 90% of the country's import bill. He noted that this investment could significantly reduce Pakistan's energy burden over the next 20 to 25 years.
'This is a major victory in trade negotiations,' he said. 'We have secured a relative advantage in U.S. tariff adjustments, and it is now the private sector's responsibility to seize these opportunities and forge meaningful deals.'
Commenting on the broader economic outlook, Schehzad said, 'The country's economic situation has improved in recent months, and this is the point from where we can begin to realize sustainable economic success.' However, he acknowledged that the salaried class has not yet received adequate relief and assured that efforts are underway to address their concerns in future policies.
He highlighted the government's recent tariff reforms, aimed at reducing import duties to support local manufacturers and boost exports. 'Pakistan had effectively become a closed economy,' he noted, 'but we are now transitioning toward a more open and competitive economic model.'
Schehzad added that the direction of economic policy is now on the right track and expected to benefit the middle- and lower-income classes. He said inflation is easing compared to peer economies and reiterated that the government's role is to facilitate—not control—economic activity. 'We are not in the business of doing business,' he said. 'Our responsibility is to empower people, create jobs, and increase incomes.'
He also emphasized the need to promote local enterprise and disclosed that agreements have been signed with banks to provide loans to small businesses. On the taxation front, he noted notable improvements in compliance and enforcement over the past year, with further gains expected in the upcoming fiscal period.
Calling for enhanced research capacity and innovation, Schehzad urged ICMAP to establish an incubation center and encourage young professionals to introduce new ideas. He stressed that the knowledge economy must be shaped by merit, critical thinking, and objective analysis.
The event, attended by economists, financial experts, and policymakers, marked a significant moment for ICMAP as it continues its role in providing policy insight and economic analysis. Schehzad congratulated the institute on the launch of the compendium and highlighted the importance of understanding economic systems to achieve long-term growth.
The Budget 2025-26 Compendium unveiled at the event includes expert commentary on the new fiscal framework, industry perspectives, and findings from the ICMA-Gallup Post-Budget Survey. It captures public sentiment on government measures, outlines key changes from the Finance Bill to the final Finance Act, and provides a comprehensive comparison of Budget 2025-26 with that of 2024-25. The report also evaluates the short- and long-term impacts of budgetary measures on Pakistan's economy.
ICMAP Executive Director Aamir Ijaz Khan and other senior officials also spoke during the ceremony.
Copyright Business Recorder, 2025
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