Islamabad, Aug 1 (PTI) Pakistan on Friday announced that the US has imposed a 19 per cent tariff on its exports and termed the step as a "balanced and forward-looking" move that enhances the country's competitiveness in the American market.

The new rate is down from the previous 29 per cent tariff announced by US President Donald Trump.

Welcoming the "successful conclusion" of the tariff-related discussions with the US, the Ministry of Foreign Affairs in a statement said, “As per the outcome of these talks, a tariff of 19 per cent will be applicable for Pakistani exports to the US market.” The decision reflected a “balanced and forward-looking approach by the US authorities, keeping Pakistan competitive relative to other South and Southeast Asian countries”, it said.

The ministry said the revised tariff level is expected to support Pakistan's export potential, especially in key sectors such as textiles, "which remain the backbone of the country’s export economy”.

Pakistan's exports to the US rose by 11.06 per cent to USD 5.552 billion from USD 4.999 billion in the first 11 months of the last fiscal.

The ministry said the current tariff presented a “significant opportunity to expand Pakistan’s footprint in the US market”.

“It is now essential for Pakistani exporters and trade bodies to adopt an aggressive and focused marketing strategy to capitalise on this development,” it said.

The statement also pointed out a substantial potential for growth in other sectors.

“The Government of Pakistan looks forward to further positive engagements and close cooperation with the United States in the areas of investment, artificial intelligence, crypto currency, mines and minerals, energy, and other emerging sectors," it said.

The ministry said Pakistan will continue to engage closely with Trump and the US administration to promote the shared goals of economic development and mutual prosperity.

The revised tariff for Pakistan came after the US and Islamabad finalised a trade deal in Washington on Wednesday.

In a social media post on Wednesday, the US President said, “We have just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves." However, it was not immediately clear what massive oil reserves in Pakistan Trump was referring to.

Meanwhile, Khurram Schehzad, Adviser to Pakistan's Finance Minister, in a social media post said, “Pakistan is possibly the only country which the US has offered its investments as well, besides a competitive trade deal.” The “deal signals a strategic deepening of economic ties and shared growth”, he said.

Pakistan has long claimed to have large oil deposits along its coast, but no progress has been made to tap those deposits. It has been trying to lure in investments to tap into these reserves.

The country currently imports oil from the Middle East to meet its energy demands.

President Trump on Thursday signed an executive order that raised tariffs for over five dozen countries with Washington's negotiations for trade deals went down to the wire ahead of the August 1 deadline.

The tariffs in the list range from 10 per cent to 40 per cent, with Japan being charged 15 per cent, Laos and Myanmar (40 per cent each), Sri Lanka (20 per cent) and the United Kingdom (10 per cent). PTI SH SCY SCY

Tariff reduction secures enhanced market competitiveness for Pakistani exports to the US under new trade deal. A trade arrangement sets a tariff of 19 per cent on Pakistani exports to the US, replacing a higher prior rate and aimed at enhancing Pakistan's export competitiveness-especially in textiles-by improving market access. The announcement encourages Pakistani exporters and trade bodies to pursue focused marketing strategies to capitalise on the revised tariff and notes continued bilateral engagement on investment and emerging economic sectors following negotiations in Washington.