Mian Anjum asks South Asia to rethink reliance on distant markets as exports face severe pressures
ISLAMABAD, NOV 30 /DNA/ – The SAARC Chamber of Commerce and Industry (SCCI) has cautioned that South Asian economies, particularly Pakistan, must urgently reorient their trade strategies toward regional markets as US tariffs continue to erode export competitiveness and threaten industrial jobs. The chamber says the region is entering a phase where dependence on distant markets is proving dangerous, and integration within South Asia has become essential to ensure economic stability and long-term growth.
SCCI Vice President Mian Anjum Nisar observed in a statement that the sweeping tariff regime imposed by the United States is disrupting Pakistan’s export-driven industries, weakening its price edge in global markets and triggering concerns about production slowdowns. A 10 percent baseline tariff has been placed on all imports, with additional duties tailored for different countries, and Pakistan’s goods recently faced tariffs reaching 29 percent before diplomatic efforts eased them to 19 percent. For sectors that operate on thin cost margins, such as textiles and garments, this shift has significantly increased the landed cost of Pakistani products in American markets, discouraging buyers and shrinking demand.
Anjum Nisar, who is also chairman of FPCCI’s Businessmen Panel (BMP), referring to a report, noted that Pakistan’s textile exports may fall by up to 30 percent under the new tariff structure, leading to estimated revenue losses of nearly 490 million dollars each year. This impact, they warn, is not limited to foreign exchange earnings; the domestic consequences are equally alarming. Textile hubs in Faisalabad, Karachi and Lahore, which rely heavily on the US market, could face deepening cutbacks, reduced shifts and thousands of potential layoffs if the export decline persists.
The BMP chief, referring to the study jointly released by the Saarc Chamber of Commerce and Industry and the South Asian Federation of Accountants titled Trading Beyond Borders, noted that the findings of the report reinforce his concerns. The study highlights how Pakistan’s textile exports remain vulnerable, with potential declines in revenues of up to 30 percent due to US tariffs. It further mentions that the tariff-induced price hike has eroded Pakistan’s competitiveness and may lead to contraction in export volumes by 20 to 30 percent. The assessment also echoed AnjumNisar’s observations about the strain on employment within Pakistan’s industrial centres.
The report also pointed out long-standing issues affecting Pakistan’s trade relations with the US, including rigid tariff regimes, inconsistent customs valuations, complications arising from import SROs and requirements relating to halal certification and genetically engineered products. Pakistan’s placement on the US Special 301 Watch List for intellectual property rights weaknesses has also created trade frictions that limit market access. Despite these obstacles, Pakistan’s exports to the US had grown steadily from 3.7 billion dollars in 2014 to 4.3 billion dollars in 2025, mostly due to textiles, apparel and leather goods.
The study additionally documented the impact of tariffs on India, which faces duties as high as 50 percent on key exports and 100 percent on certain branded pharmaceuticals and films. As a result, India has encountered capital outflows exceeding 15.5 billion dollars and a depreciation of its currency, weakening investor confidence and placing pressure on industries reliant on the US market. The report concluded that external policy shocks have exposed the fragility of South Asian export structures and underscored the urgent need for diversification.
He also points out long-standing obstacles continuing to strain Pakistan’s trade relations with the US, including inconsistent customs valuation practices, complex SRO-based import rules, and regulatory barriers such as halal certification requirements and restrictions on genetically engineered products. Pakistan’s presence on the US Special 301 Watch List due to weaknesses in intellectual property rights enforcement has further complicated market access. Despite these persistent frictions, Pakistan’s exports to the US had shown encouraging growth over the past decade, rising from 3.7 billion dollars in 2014 to 4.3 billion dollars in 2025, driven by textiles, apparel and leather products.
The chamber warns that this progress is at risk if Pakistan fails to adjust to the new global landscape. Similar pressures are also weighing on India, which, according to the chamber’s observations, is confronted with tariffs up to 50 percent on major export categories and even 100 percent on certain branded pharmaceuticals and films. These measures have sparked capital outflows exceeding 15.5 billion dollars from India, weakened its currency and shaken industrial confidence. The chamber argues that the fragility exposed by US tariffs on both sides of the border illustrates how dangerously reliant South Asian economies have become on a single destination market.
SCCI Vice President stressed that South Asian economies can no longer treat regional trade as an afterthought. He said the current tariff shock should be seen as a turning point and an opportunity for countries to reconsider their economic priorities. According to Nisar, regional markets offer a sustainable alternative to external uncertainty, and deeper economic cooperation within South Asia can help cushion shocks, create efficiencies and reduce transport and logistics costs.
