1. 2024 US Election
Donald Trump ex-president of the USA and Kamala Harris have different views on economic techniques but their approaches are the same. Trump and Kamal Harris pledged to assist the middle country and help with business. Pakistan involved in a middle-class country in the world. Pakistan and the United States have broad and stronger business relations. On the one hand, The United States is an important market for Pakistani export businesses with the fifth export in 2023. However, investing in the USA provides a different reality. USA foreign direct investment (FDI) is relatively small, accounting for 4% of all FDI in FY24, according to the State Bank of Pakistan. Pakistan’s finances depend on different institutions like the World Bank and the International Monetary Fund. The USA has a considerable influence on these bank departments. America election 2024 what effect particular on the pakistan bussines.
2. Trump
Us election on 2024 Trump USA First policies offer 60Pc tariffs on Chinese country imports. The 10pc import from the other countries, Pakistan included in these countries. Pakistan’s special exports are textiles and apparel to the American country. Pakistan is not focusing on textiles, explains CEO Pakistan Ehsan Malik. Trump’s ex-president is announcing a free trade agreement covering textiles. Pakistan is a direct competitor to Salvador and Guatemala in textiles.
a. Trump’s promoting the CBTPA.
CBTPA is in the middle of America and DR is made of yarns and fabric. These yarns and fabric are free to enter the USA, increasing those industries to form deep ties with US companies.
3.Kamal Harris
Kamal Harris has signaled a normal approach, opting to talk with china. Democrat party and administration will be starting new tariffs with Pakistan. It is more likely to target nations like Vietnam, Cambodia, and Laos that China has moved production to and can utilize as a conduit for exports to the United States.
4. Ways to increase the purchasing power of Americans
Though using different strategies, both candidates have put forth plans to increase Americans’ purchasing power.
1. In keeping with Biden-era policies, Harris prioritizes middle-class tax relief by seeking to increase the child tax credit for newborns to $6,000 per year.
2. In the meantime, Trump is proposing to double the current $2,000 child tax benefit to $5,000 annually.
3. Harris has pledged to lower taxes for 100 million Americans, especially middle-class individuals.
5.Impact on economic pakistan
By increasing disposable income, these policies may boost demand for clothing purchases, which would benefit Pakistan.
But according to Dr. Manzoor Ahmad, a former ambassador to the World Trade Organization, this would only slightly impact Pakistan’s exports.
The numerous policies proposed by both presidential contenders are intended to boost the purchasing power of Pakistan’s export target market, the middle-class.
6. Corporate tax battle
Harris supports raising the corporate tax rate from 21 percent to 28 percent in an effort to target large corporations.
Trump’s strategy is different, though, because it benefits large companies who produce goods in the US. Raising the tax rate might deter US investment in Pakistan from expanding.
The top corporate tax rate was reduced from 35 percent to 21 percent, and the top personal tax rate was decreased from 39.6 percent to 37 percent under the 2017 Trump tax bill.
Trump has suggested lowering the corporation tax rate to 15 percent for businesses who manufacture their goods in the US.
A reduction in tax rates would encourage even greater investment in homegrown manufacturing, which would reduce the need for imports and have an indirect effect on Pakistan.
7. Potential routes and lost possibilities
During Trump’s presidency, the US-China trade war began in 2018. Soybean exports had room in the tit-for-tat actions prior to the normalization of commodity ties.
Other nations seized the chance to profit quickly, but Pakistan lost out because it was mired in red tape.
Tariffs on China could open up new chances for Pakistan under Trump. For instance, media sources state that China made a $2.2 billion investment in Mexico’s automotive industry in the first half of 2024 in order to gain a “back door” into the US market.
Pakistan may develop into a different location for exports and investment. However, before that can occur, the nation must address its numerous internal issues.
“Considering the state of security and the absence of operational Special Economic Zones.
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