Pakistan to get benefits from $3 trillion Asean’s economy: envoy

ISLAMABAD: Pakistan has huge trade and investment opportunities in the $3 trillion economy of the Association of Southeast Asian Nations (Asean) for increasing the bilateral trade and economic ties.

With Asean’s $3 trillion economic power and a large market of 650 million people in the region, the mutual $7 billion trade between Asean and Pakistan is far below its potential, Ambassador of Vietnam to Pakistan Nguyen Tien Phong said, while addressing the Pakistan-Asean Business Forum, organised by the United Business Group (UBG) of the Federation of Pakistan Chambers of Commerce and Industry.

The ambassador said Pakistan is a huge market with a Gross Domestic Product (GDP) of $300 billion and a population of 230 million, where there are huge opportunities for the Asean countries, as well.

China has $600 billion in trade with Asean countries. Similarly, China and Asean countries have a free trade agreement with Pakistan from which both sides can benefit.

Regarding the multilateral trade in Asean and Pakistan’s trade interests with this trading bloc, Vietnam, being an important member of Asean, would play its due role in paving the way for trade for Pakistan, he said, adding that Asean is a very effective trading bloc of the world and have signed free trade agreements (FTAs) with China, Japan, Australia and New Zealand from which all the regional countries are benefitting.

The Vietnamese ambassador said the way Pakistan has Generalised Scheme of Preferences (GSP) Plus agreement with the European countries and the FTA with other countries, both sides can promote bilateral trade under one agreement.

Phong said that talks on further progress on the proposed Preferential Trade Agreement (PTA) between Pakistan and Vietnam are likely to take place in the middle of November, 2021.

In the fifth meeting of the “Vietnam-Pakistan Trade Committee Plan”, both sides will discuss the two top agendas of bilateral trade and investment, the PTA and the agreement on mutual investment and its protection.

The ambassador said in the fifth round of talks under the trade subcommittee, the two sides will also discuss other issues of bilateral trade and investment cooperation between the two countries.

After signing of the PTA between the two countries, there would be talks on the FTA so as to increase the trade volume, he said, adding, at present, there is a bilateral trade of around $700 million between the two countries, which is far below its potential and to increase it, the trade volume between the two countries needs to be increased.

Responding to a question, he said the main reason for the decline in bilateral trade volume was the lack of mutual awareness between the two sides, which needed to be improved in the future.

Phong said that Pakistan also has good trade and economic relations with the Asean countries, which need to be further enhanced.

The Golden Jubilee of diplomatic relations between Pakistan and Vietnam would be on August 11 of 2022 and the 50 years of diplomatic relations would be marked in a dignified manner in which the development of bilateral diplomatic and trade relations between the two countries would be reaffirmed, he said.

Trade, economic, cultural and people-to-people contacts between the two countries would have to be further enhanced, he added.

Meanwhile, Ambassador of Thailand to Pakistan Chakkrid Krachaiwong, hinted at the signing of a free trade agreement between Pakistan and Thailand. Malaysia’s acting ambassador urges increase in Asean-Pakistan trade volume.

Addressing the forum, Islamabad Chamber of Commerce and Industry (ICCI) president Shakeel Munir said that the economic and trade relations between Pakistan and Asean countries need to be enhanced. In this regard, there is a need to improve relations between the business communities on both sides.