China and the U.S. are both ‘critical and strategic allies’

Countries around the world have been feeling the pressure of rates imposed on their exports to the United States, as well as commercial tensions between the largest superpowers in the world.

Pakistan is no exception.

The president of the United States, Donald Trump, had imposed a 29% tax on all exports in the country in southern Asia to the US. UU. On April 2. Since then, it has reduced duty to 10%, as part of its 90 -day break on tariffs imposed on some countries and goods.

The weighted average tariff on US exports to Pakistan is around 7%, says Federal Minister of Finance and Income from Pakistan, says Muhammad Aurengzeb. On the contrary, the weighted average tariff on the imports of USA of Pakistan is around 10%, he said.

“We export a little more than $ 5 billion (Y) importing approximately $ 2 billion more,” Aurengzeb told CNB on the margin of the spring meetings of the IMF world bank.

He added that Pakistan is now looking to interact with the United States to “close this gap.”

The imports of the country of the United States include “high quality cotton”, as well as other agricultural products, such as soy beans, said the minister. In the future, it is recognized that trade between the two countries could include metals such as copper, produced by Pakistan.

“From the perspective of Pakistan, the United States has been a very strategic partner, one of our biggest commercial partners. Therefore, we want to commit ourselves very constructively with the United States,” said Aurengzeb.

When asked if Pakistan has pivotar plans towards China, the finance minister replied that the South Asia Nation is not willing to choose one country over the other.

“Where I feel and where the government is … both are very critical and strategic allies for Pakistan.”

Touching China, Aurengzeb said it has a “long data relationship” with Pakistan.

For example, Pakistan has been active in the Signature Belt and Road initiative of China that influences the construction of multimillion -dollar infrastructure projects in all countries.

A key project in the initiative is the Chinese-Pakistan economic corridor that has seen China investing more than $ 65 billion in Pakistan, even in the port of Gwadar that provides the western region of Xinjiang in China a gate to the Arabic sea.