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Which sector of Pakistan’s economy is most likely to be affected by a US tariff?

A. Textile
B. Pharmaceuticals
C. Agriculture
D. Pharmaceuticals
Correct Answer: A. Textile

The question asks which sector of Pakistan's economy would be most affected by a US tariff. The correct answer is Textile.

  • Textile: Pakistan's textile industry is a major exporter, particularly to the United States. Tariffs imposed by the US would directly increase the cost of Pakistani textile products, making them less competitive and significantly impacting this sector's revenue and employment.
  • Pharmaceuticals: While Pakistan has a pharmaceutical industry, its export volume to the US is generally lower compared to textiles, making it less susceptible to broad tariff impacts.
  • Agriculture: Pakistan's agricultural sector primarily serves domestic consumption, and while some agricultural products are exported, they typically face different trade dynamics than manufactured goods like textiles.

Therefore, due to its significant export volume and reliance on the US market, the textile sector is most vulnerable to US tariffs.

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