Pakistan is preparing to increase its imports of US cotton and soybeans in an effort to reduce its bilateral trade surplus with the United States to below $2 billion, according to a Bloomberg report. This strategic move aims to appease the Trump administration and potentially secure relief from recently imposed US trade tariffs.

The initiative comes in response to tariffs implemented by US President Donald Trump earlier this month, which could significantly impact Pakistan’s export-oriented economy. In the financial year 2023-24, Pakistan maintained a trade surplus of approximately $4 billion with the United States, a figure the country now seeks to cut by half.

Agricultural Imports as the Primary Strategy
Pakistan, already the second-largest buyer of US cotton by value after China, plans to focus on increasing agricultural imports as its primary strategy. The United States remains Pakistan’s largest export destination, with textiles and garments constituting the majority of sales.

The current plan emphasizes commodity imports over more expensive alternatives such as crude oil. While the federal government has considered purchasing additional crude oil from the US, high shipping costs have limited consensus on implementing this option.

Government Deliberations
A comprehensive strategy report addressing the trade imbalance was presented to Prime Minister Shehbaz Sharif on April 9. However, formal responses from the Prime Minister’s Office are still pending.

The initiative reflects Pakistan’s pragmatic approach to navigating the changing global trade landscape and protecting its vital export sector from potential tariff impacts. By proactively addressing the trade surplus, Pakistan hopes to maintain favorable trade relations with the United States, which remains crucial for its economic stability.