Trade wars and rising tariff tensions could intensify economic strain in Pakistan unless urgent policy shifts are undertaken, experts warned at a seminar organized by the Pakistan Institute of Labour Education and Research (PILER) in collaboration with the Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST).

The event, titled ‘Trade Wars and Tariff Tensions: The Economic Fallout for Pakistan, the Region, and the Globe’, brought together economists, industrialists, labor representatives, and civil society stakeholders to assess the domestic and global impact of protectionist trade policies.

Renowned economist Dr Asad Saeed, delivering the keynote, cautioned that Pakistan’s fragile macroeconomic framework leaves it especially exposed to global disruptions.

He elaborated that local industries, already constrained by the absence of tax incentives and high energy costs, are ill-equipped to absorb the additional shocks from trade wars. He added that this situation could result in further pressure on wages and job security, noting that wage increases may fail to keep pace with inflation.

Though Pakistan’s contribution to the U.S. trade deficit is just 0.3%, Dr. Saeed pointed out that secondary effects-such as global shifts in sourcing and pricing-could indirectly hurt Pakistani exporters.

He also suggested that targeted bilateral agreements in sectors like agriculture and minerals could offer opportunities for Pakistan to mitigate the fallout and expand its export base. Commenting on global trends, Dr. Saeed remarked that U.S. efforts to reindustrialize will likely fall short without supportive immigration and labor market reforms.

Veteran trade unionist Qamar brought attention to the unequal burden on workers, especially in developing countries with minimal social protection mechanisms. He emphasized the need for Pakistan to use this period of uncertainty to not only diversify its exports but also implement stronger labor protections.

Further insights came from industrialist Nazim F. Haji, civil society advocate Mahnaz Rahman, and Kirstine Drew of the Pakistan Accord, who collectively highlighted the importance of integrating workplace standards, gender equity, and industrial resilience into national trade strategies.

The forum concluded with a shared call for Pakistan to approach current global trade shifts as a critical moment for economic reform and inclusive growth.