The US wants to increase its trade with Pakistan four-fold. This doubtless means increasing US exports but Pakistan needs a significant boost to its export economy before it is in a position to increase its purchases significantly. Pakistan’s exports contracted by 0.2 per cent year over year in the 12 months to May 31, following a 0.9 per cent annual decline in the prior three years. The US accounted for 16.6 per cent of the total, and managed to increase by 5.8 per cent in the past 12 months.

The major challenge in increasing imports from Pakistan will lie in either diversifying its exports to the US, or significantly eating into the market share of other countries supplying the US. In aggregate the apparel and textile industries accounted for 37.8 per cent and 35.1 per cent respectively of all US imports from Pakistan in the 12 months to May 31. Given Pakistan accounted for just 1.7 per cent of US apparel imports and 8.4 per cent of textiles there may well be room for increased market share.

Levi Strauss’ imports of apparel and textiles from Pakistan in the second quarter rose 101.5 per cent. JC Penney’s imports rose 13.3 per cent while Adidas’ imports grew by 9.9 per cent.