Pakistan’s textile industry looks to ‘grab business’ amid US-China tariff escalation

Pakistan’s textile industry looks to ‘grab business’ amid US-China tariff escalation
Tailors stitch men shirts at a small factory in Karachi, Pakistan, on April 8, 2025. (AP)
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Updated 11 April 2025
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Pakistan’s textile industry looks to ‘grab business’ amid US-China tariff escalation

Pakistan’s textile industry looks to ‘grab business’ amid US-China tariff escalation
  • Textile sector in Pakistan generates about $17 billion in exports and is the largest employer in the country
  • Pakistan’s textile industry is expected to face potential losses of up to $2 billion in textile exports under new tariffs

ISLAMABAD: Pakistan’s textile sector is looking at opportunities to “grab business” as the US and China steadily hiked tariffs amid an escalating trade war, the head of the country’s textile council said this week. 
The textile sector in Pakistan generates about $17 billion in exports and is the largest employer in the country, according to Fawad Anwar, Chairman of the Pakistan Textile Council.
“There is an opportunity to grab (business) from China. How well we can do that, that depends on how well we can sit on the table and negotiate,” said Anwar, who spoke to Reuters hours before US President Donald Trump temporarily paused hefty tariffs on dozens of countries for 90 days, except for China.
Pakistan would have been slapped with a 29 percent tariff rate before Trump’s turnabout on Wednesday. A 10 percent blanket duty on almost all US imports will remain in effect, the White House said.
Trump also hiked the tariff on Chinese imports to 125 percent from the 104 percent level that kicked in on Wednesday.
Previously, Beijing had slapped 84 percent tariffs on US imports to match an earlier tariff salvo from Trump and had vowed to “fight to the end” in an escalating tit-for-tat trade dispute between the world’s top two economies.
“This is a war between the two giants, and everything else is a collateral damage,” said Anwar.
Pakistan’s textile industry is expected to face significant challenges from the tariffs with potential losses of up to $2 billion in textile exports estimated by experts, if the 29 percent tariff rate is reinstated after Trump’s 90-day pause ends.
For Pakistan’s textile industry’s Anwar, the levy hike is a short term issue which ‘has to be resolved’.
“They cannot sustain this 29 percent, the US retailer or the US consumer… nobody can sustain this big of a percentage increase,” said Anwar.


Pakistan deputy PM says will soon table 27th constitutional amendment in parliament

Pakistan deputy PM says will soon table 27th constitutional amendment in parliament
Updated 04 November 2025
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Pakistan deputy PM says will soon table 27th constitutional amendment in parliament

Pakistan deputy PM says will soon table 27th constitutional amendment in parliament
  • Key proposals include creating constitutional courts, removing protection for provinces’ share in federal resources, and returning education and population to center
  • Analysts say the Pakistan Peoples Party, a key coalition partner in the federal government that has voiced its opposition to the 27th amendment, has little choice but to back it

KARACHI: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar said on Tuesday that the government will soon table the much-discussed 27th constitutional amendment in parliament, amid concerns that it could undermine provincial autonomy.

Constitutional amendments in Pakistan require a two-third majority in both houses of parliament and have historically been used to redefine the balance of power between the legislature, judiciary and provinces. The proposed 27th amendment follows the 26th amendment passed in October 2024, which empowered parliament to appoint the Supreme Court chief justice for a fixed term and created a panel of senior judges to hear constitutional cases, a move critics said weakened judicial independence.

Pakistan’s constitution, adopted in 1973, has been amended more than two dozen times, often reflecting the country’s shifting balance among civilian governments, the military and the judiciary. Provisions such as the National Finance

Commission (NFC) award, which governs how federal revenue is shared among provinces, are especially sensitive because they underpin Pakistan’s federal structure and provincial autonomy.

In a post on X on Monday, Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto-Zardari, a major coalition partner, said Prime Minister Shehbaz Sharif’s ruling Pakistan Muslim League-Nawaz (PML-N) had approached his party, seeking support in passing the amendment. He said the proposals included creating constitutional courts, restoring executive magistrates, amending Article 243, which defines the command and control of the armed forces, removing protection for provinces’ share in the NFC award and returning education and population planning to the federation.

“Of course, the government is bringing it and will bring it... the 27th amendment will arrive... We will try that it be tabled in accordance with principles, laws and the Constitution,” Dar said in the Senate, the upper house of parliament, adding that the draft amendment would undergo robust debate.

“The government does not have reservations on anything. It is not the case that the amendment is tabled and there is voting on it in a haphazard, ad hoc manner; this will not happen.”

The PPP, a key coalition partner in the federal government that has long claimed credit for spearheading the 18th amendment in 2010, considers it one of its signature democratic achievements. That amendment had significantly strengthened provincial autonomy, devolved several ministries and given provinces a larger share in national resources.

Senator Raza Rabbani, a senior PPP member and one of the architects of the 18th amendment, warned that any attempt to revisit the provincial autonomy will “cast deep shadows over the federation.”

He said the proposed amendment amounted to “a rollback of the 18th amendment” and could reignite divisive nationalist sentiments, arguing that reviving devolved ministries would place an unnecessary financial burden on the federal government that is already struggling to manage its fiscal affairs.

“If Islamabad cannot manage its finances, then let the provinces collect taxes and contribute to federal expenditures through the Council of Common Interests,” he said, cautioning that undoing fiscal devolution would be “counter to the principle of participatory federalism.”

PPP UNLIKELY TO ‘RESIST’ AMENDMENT

Political observers remain skeptical about the PPP’s ability to oppose the amendment.

Lahore-based analyst Salman Ghani said that while the party may protest publicly, it is unlikely to “resist” the amendment in parliament.

“This is happening with 100 percent consent,” he said, adding the PPP was not in a position to say “no” to the amendment which gives more powers to the center.

“During the 18th amendment, the PPP was strong and confident. Today, the balance of power is different. The center needs more resources, and the PPP is in no position to challenge it.”

Ghani believed that the amendment would pass easily in the National Assembly, the lower house of parliament, wherein the ruling PML-N already has the required numbers. “But in the Senate, the government, will need support from the Jamiat Ulema-e-Islam–Fazl,” he said. “In the end, the PPP will accept the bitter pill because they are part of this system and cannot afford confrontation.”

Fazil Jamili, a Karachi-based analyst, agreed with Ghani, saying that political parties were not in a position to “resist.”

Calling the proposal “detrimental to democracy,” Jamili said the 27th amendment, as outlined by Bhutto-Zardari, would “certainly roll back the 18th amendment” and erode provincial autonomy and public trust.

“Around the world, federal governments are devolving powers. We are doing the opposite,” he said. “That’s not healthy for democracy in the long run.”