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Shams Abbasi
ISLAMABAD, Nov 21 (APP):The Association of Southeast Asian Nations (ASEAN) and Pakistan’s trade volume of US$11.5 billion in 2024 is below its potential, which needs to be rationalized. Pakistan’s trade with the ASEAN countries remains significant, but with a notable trade deficit favouring ASEAN in 2025.
The total trade volume between Pakistan and ASEAN was about US$11.5 billion in 2024, slightly decreased from previous years.
Pakistan’s exports to ASEAN in 2024 were approximately US$3.5 billion, while imports from ASEAN stood at around US$8 billion.
The bulk of Pakistan’s trade is with five ASEAN countries, Indonesia, Malaysia, Thailand, Vietnam and the Philippines.
Pakistan has ongoing trade agreements and negotiations to enhance this relationship: a Free Trade Agreement (FTA) with Malaysia, a Preferential Trade Agreement (PTA) with Indonesia, and ongoing negotiations for an FTA with Thailand and a PTA with Vietnam.
There is a strong government push to boost trade and economic ties, including technology transfer, value addition, and investment in Special Economic Zones (SEZs) under CPEC, aiming to attract ASEAN investors and reduce the trade imbalance.
Strategically, Pakistan serves as a bridge for ASEAN access to Central Asia, Middle East, Western China, and the Indian Ocean for enhancing regional connectivity. Pakistan’s policy and infrastructure improvements aim to make it an advantageous market and production base for ASEAN companies.
Pakistan-ASEAN trade in 2025 is robust, but with a significant trade deficit for Pakistan, and efforts through agreements, investment incentives, and infrastructure development are underway to expand and balance this trade relationship.
It is pertinent to mention that key Pakistani exports to ASEAN countries in 2025 mainly include textiles (such as non-knit men’s and women’s suits, knit sweaters), rice (including basmati variety), house linens, and seafood products.
Textiles make up about 68% of Pakistan’s exports, concentrated in this market, along with significant export volumes of rice and leather goods.
Other notable exports include cotton and agricultural products such as pulses and tree nuts.
Specific sectors like textiles, rice, and services are expected to exhibit steady growth reflecting Pakistan’s export strategy and ASEAN market demand, as ASEAN countries increased imports from Pakistan fastest in 2025.
Among ASEAN countries, Indonesia, Malaysia and the Philippines have shown the fastest increase in imports from Pakistan in 2025.
These countries are key ASEAN partners for Pakistan, accounting for a large share of trade volume.
Malaysia, with an existing Free Trade Agreement with Pakistan, has increased demand for Pakistani textiles, rice, and leather goods, and Indonesia is also committed to executing the Preferential Trade Agreement signed in 2012.
The Philippines also grew imports significantly, particularly in textiles and agricultural products.
Other ASEAN countries with notable but comparatively slower import growth from Pakistan include Thailand, Vietnam and Thailand.
The trade growth is driven by bilateral agreements and Pakistan’s effort to diversify exports, improve regional connectivity, and enhance value-added production in sectors like Information Technology, textiles and food products.
Overall, among the top five ASEAN trading partners (Indonesia, Malaysia, Thailand, Vietnam and Philippines), Indonesia, Malaysia and the Philippines stand out as the fastest-growing importers of Pakistani goods in 2025.
Meanwhile, talking to APP, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Ikram said that ASEAN countries have huge economic potential for connecting the 250 million Pakistan market.
He said that Pakistan can play its due role to connect ASEAN economies with the Central Asian Republic, the Middle East and China.
President of Islamabad Chamber of Commerce and Industry (ICCI), Sardar Tahir Mehood, said that Indonesia and Malaysia are the biggest trading partners of Pakistan in ASEAN, and Pakistan need to reconnect with ASEAN through these two potential economies.