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Pakistani newspaper slams government's inaction after India secures US deal
India-US trade deal has far-reaching consequences for Pakistan, 'Dawn' claimed

Pakistani newspaper slams government's inaction after India secures US deal

Feb 09, 2026
04:46 pm

What's the story

A recent op-ed in the Pakistani newspaper Dawn has criticized Prime Minister Shehbaz Sharif's government for not making serious efforts to secure a bilateral trade agreement with the United States. The article, written by Dr Manzoor Ahmad, a senior trade policy expert, comes after India and the US signed an interim trade agreement on February 6, 2026. The deal is expected to have far-reaching consequences for Pakistan as well, which faces 19% tariffs currently.

Deal details

India and US sign interim trade agreement

The India-US trade deal is a major shift from New Delhi's traditional stance. The US has agreed to reduce its reciprocal tariff on Indian goods from 25% to 18%. In return, India will eliminate or significantly reduce tariffs and non-tariff barriers on US industrial goods and various agricultural products. It also plans to purchase $500 billion worth of US goods over five years and stop buying Russian oil.

Trade impact

Pakistan's textile sector may be adversely affected

The Dawn article highlights that the India-US trade deal could have a direct impact on Pakistan's key export sectors, especially textiles and apparel. The US is already Pakistan's largest single-country export destination, with imports over $5 billion and a trade surplus of around $3 billion in Pakistan's favor. However, despite this exposure, Islamabad has not taken serious efforts to negotiate a comprehensive bilateral trade agreement with Washington.

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Policy critique

'Fig leaf agreements' have not helped Pakistan

Dr Ahmad's article also criticized Pakistan for relying on unilateral tariff preferences or narrow agreements covering limited products. Such "fig leaf agreements" have yielded little in terms of sustained market access or export diversification, leaving Pakistan increasingly marginalized in global trade. The op-ed emphasized the need for Pakistan to rethink its trade policy with the US and pursue more comprehensive agreements.

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Agreement details

US-Pakistan trade agreement finalized in July 2025

The US-Pakistan trade agreement was finalized in late July 2025 after negotiations in Washington. It includes a pact to jointly develop Pakistan's untapped oil reserves, mainly located in Balochistan, Sindh, Punjab, and Khyber Pakhtunkhwa. President Trump had called it a "historic" energy partnership on Truth Social while PM Sharif and Finance Minister Muhammad Aurangzeb praised enhanced market access in the US.

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