Pakistan eyes East Africa trade push amid US tariff threats

Pakistan turns to Africa as global trade tensions rise

Amid escalating global trade tensions triggered by fresh US tariffs under President Donald Trump, Pakistan is shifting focus toward East Africa, aiming to expand trade with the East African Community (EAC) through new maritime corridors. The EAC comprises eight nations—Burundi, Democratic Republic of the Congo, Kenya, Rwanda, Somalia, South Sudan, Tanzania, and Uganda—with a combined population exceeding 500 million and a GDP of around $345 billion.

According to State Bank of Pakistan data, Pakistan’s trade with Eastern Africa during the first nine months of FY25 reached $1.30 billion, with exports valued at $617.12 million and imports at $688.20 million. Kenya remained Pakistan’s leading trading partner in the region. In a recent milestone, Haleon Pakistan exported its first shipment of Centrum multivitamins to Kenya.

Federal Minister for Maritime Affairs Junaid Anwar Chaudhry announced that new maritime trade corridors will be launched to strengthen trade ties with the EAC, starting with a direct shipping line between Karachi and Djibouti. The corridor will provide Pakistani exporters with faster and more cost-effective access to East African markets. Djibouti, a key regional logistics hub, will serve as an entry point to countries such as Somalia and Ethiopia.

The second phase of the initiative involves the full development of Gwadar Port into a regional export hub targeting Africa. The minister underscored the port’s strategic location and potential to deepen Pakistan’s economic linkages with both Africa and the Middle East.

Chaudhry noted that the initiative will be backed by an inter-ministerial consortium encompassing trade, finance, diplomacy, and technology stakeholders, aiming to create an integrated support system for exporters. The minister expressed optimism that the effort will boost Pakistan’s exports, particularly in textiles, agriculture, pharmaceuticals, and machinery, while fostering long-term commercial partnerships with EAC member states.

The pivot to Africa coincides with mounting pressure from the US, which recently imposed a 29% reciprocal tariff on Pakistani goods, citing Islamabad’s 58% duty on US imports. Pakistan plans to send a high-level delegation to Washington for trade negotiations. Meanwhile, Asian countries including Pakistan are exploring increased US oil and gas purchases in a bid to ease tariff burdens and rebalance trade flows.

Pakistan’s East Africa strategy is seen as a timely move to diversify its export markets and reduce exposure to ongoing geopolitical trade risks.

Monitoring Desk
Monitoring Desk
Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Farmers reject Punjab govt’s Rs15b relief package

Farmers cultivated wheat on the request of Maryam Nawaz, but now the government is turning a blind eye to their plight, says Alliance President