Trump’s Tariffs and the Impact on Pakistan: Can Trade Still Drive Growth?

In this episode of the Flywheel Economics Podcast, we dive deep into the impact of Trump’s tariffs on Pakistan.
We explore what these changes mean for emerging markets and how they may reshape global trade in the years ahead.

Our guest, Dr. Manzoor Ahmad, former Ambassador to the World Trade Organization, brings unique insights into Pakistan’s trade vulnerabilities. He explains that rising U.S. tariffs are not just about America’s domestic politics.
They also reveal underlying weaknesses in countries like Pakistan, especially those with fragile export bases.

At the core of Pakistan’s challenge is a long-standing anti-export bias. For decades, heavy protectionist policies have shielded sectors like automobiles and textiles. However, these policies have also discouraged innovation, lowered competitiveness, and limited productivity growth.

Moreover, we revisit ideas from our earlier episode about Sialkot’s export flywheel. Sialkot became a global hub for sporting goods through self-sustaining, export-driven growth. Yet few other regions in Pakistan have managed to replicate that success. We ask: why not?

Dr. Ahmad argues that Pakistan must move beyond low-value textile exports. The country needs to embrace higher-value industries like engineering, pharmaceuticals, and processed goods. At the same time, he stresses that trade liberalisation must be paired with reforms in infrastructure, education, and R&D to succeed.

Meanwhile, we also look at Nigeria’s experience — and how missed opportunities there echo similar patterns. Protectionism often protects the few while sacrificing broader economic progress.

Despite the challenges, there is still hope. If Pakistan moves quickly, reforms trade policy, and embraces global competitiveness, it could catch the next wave of global growth.

This episode offers essential insights for policymakers, entrepreneurs, and anyone interested in the future of Pakistan’s economy.

Listen now on Apple, Spotify, YouTube, or SoundCloud.
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