Pakistan’s sovereign dollar bonds declined on Friday after US President Donald Trump unveiled a fresh round of tariffs targeting imports from 60 trading partners, including Pakistan, prompting investors to reassess risks across emerging markets.
According to Reuters, Pakistan’s 2036 international sovereign bond fell 0.5 percent to 97.80 cents on the dollar following the announcement. Sovereign bonds issued by other emerging economies, including Sri Lanka and Indonesia, also weakened as the new US trade measures dampened investor sentiment.
The United States imposed tariffs ranging from 10 percent to 12.5 percent on imports from dozens of countries, citing concerns over compliance with US forced labour import restrictions. Pakistan was placed in the 10 percent tariff bracket, alongside India, Bangladesh, Canada, the United Kingdom, Indonesia and Malaysia.
The move replaces the temporary 10 percent universal tariff that was due to expire and forms part of the Trump administration’s broader strategy to reshape global trade and strengthen protections for domestic industries.
The revised tariff regime applies to goods accounting for roughly 99.4 percent of US imports, although products such as crude oil, natural gas, fertilizers and selected food items remain exempt.
Pakistan had previously engaged with US authorities over concerns related to forced labour regulations and submitted responses as part of ongoing discussions aimed at addressing the issue.
