Trade between Pakistan and the Association of Southeast Asian Nations (ASEAN) has exceeded US$11 billion in 2026, highlighting the steady growth in economic relations between the two sides.
Pakistan- ASEAN trade ends US$ 11 billion in 2026, strengthening regional economic ties
By Shams Abbasi
ISLAMABAD, Jul 14 (APP): Trade between Pakistan and the Association of Southeast Asian Nations (ASEAN) has exceeded US$11 billion in 2026, highlighting the steady growth in economic relations between the two sides.
The milestone reflects ASEAN’s rising significance as one of Pakistan’s leading trading partners and creates new opportunities to deepen collaboration in trade, investment, and regional economic development.
According to official figures, Pakistan exported goods worth around US$3 billion to ASEAN member states during 2026, while imports from the regional bloc stood at approximately US$7 billion, resulting in a trade deficit of nearly US$4 billion.
ASEAN has emerged as one of Pakistan’s most significant regional markets, driven by rising demand for textiles, agricultural products, leather goods, seafood, chemicals, and industrial raw materials. Pakistan, in turn, imports machinery, palm oil, electronic equipment, chemicals, and manufactured goods from ASEAN economies, particularly Malaysia, Indonesia, Thailand, Singapore, and Vietnam.
Thailand remains one of Pakistan’s major trading partners within ASEAN. Pakistan’s exports to Thailand were valued at US$ 251.28 million, while imports reached US$845.44 million, resulting in a bilateral trade deficit of US$594.16 million.
Seafood accounted for more than 34 percent of Pakistan’s exports to Thailand, reflecting the country’s competitive advantage in marine products.
Trade experts believe Pakistan possesses significant potential to enhance exports to ASEAN by diversifying its export basket beyond traditional textile products.
Sectors such as information technology, pharmaceuticals, engineering goods, processed foods, sports goods, and halal products offer considerable opportunities for future growth.
Improved regional connectivity, trade facilitation measures, and stronger business-to-business collaboration are expected to further strengthen commercial ties.
The Ministry of Commerce is implementing the Strategic Trade Policy Framework (2025–30), aimed at enhancing export competitiveness, diversifying export markets, and integrating Pakistan more effectively into regional and global value chains through improved market access, digital trade initiatives, and export promotion measures.
Economists believe narrowing the trade gap with ASEAN will require greater industrial productivity, increased value-added exports, and stronger investment partnerships with Southeast Asian economies.
Pakistan’s strategic location and expanding manufacturing base provide a strong foundation for attracting investment and integrating into evolving regional supply chains.
Talking to APP on Tuesday, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Ikram Sheikh, said Pakistan and ASEAN possess enormous potential to expand bilateral trade, investment, and economic cooperation.
He emphasized that product diversification and enhance the competitions of Pakistan’s industrial sector are essential to reducing the trade deficit with ASEAN while creating new opportunities in innovation-driven and high-value industries.
President of the Rawalpindi Chamber of Commerce and Industry (RCCI), Usman Shaukat, said ASEAN countries remained among Pakistan’s largest trading partners and that the chamber would continue to facilitate stronger business linkages with the region.
He stressed that the private sector must take a leading role in strengthening Pakistan-ASEAN economic relations through increased trade, investment, joint ventures, and greater participation in regional value chains.
With bilateral trade now exceeding US$11 billion in 2026, policymakers and business leaders believe deeper engagement with ASEAN will play a pivotal role in boosting Pakistan’s exports, attracting foreign investment, and accelerating sustainable economic growth.
