By Shams Abbasi
ISLAMABAD, Nov 24 (APP): The local business leaders and traders on Friday called for the Free Trade Agreement (FTA) to take bilateral trade between Pakistan and Kazakhstan up to the level of $1 billion.
After the FTA, there is huge potential to take bilateral trade to $1 billion on both sides, in which the role of the business community is vital, President Federation Pakistan Chamber of Commerce and Industry (FPCCI) Irfan Iqbal Sheikh told APP here.
He said that the joint trade potential of Pakistan and Kazakhstan was very important in regional trade as Kazakhstan was the largest economy in Central Asian Republics.
Irfan said that Pakistan and Kazakhstan were geographically significant in the region. Both countries want to work on regional economic integration using their geo-strategic position, he said.
He said that at the end of 2022, mutual trade between Pakistan and Kazakhstan was $195 million, which was much less than its potential.
President FPCCI expressed the hope that the business communities of Pakistan and Kazakhstan will play a significant role in increasing bilateral trade in the near future.
He said that recently direct flights have been started between the two major cities of Lahore and Almaty, which will benefit the business communities of both sides.
Meanwhile, President Islamabad Chamber of Commerce, Ahsan Zafar Bakhtavari said that Pakistan and Kazakhstan are major two countries in the region whose bilateral trade volume is much less than its potential.
He said that Central Asia is very important in the global trade and energy resources with which Pakistan has centuries-old trade relations.
Ahsan Bakhtavari said that the growth of trade between Pakistan and Kazakhstan depends on the businessmen of both countries, whose relations are very important.
He said that we have strong ties with the communities of Kazakhstan which need to be further enhanced in the future.
Meanwhile, President, Faisal Chamber of Commerce, Dr. Khurram Tariq said that recently Kazakhstani businessmen and various Kazakh brands have visited Faisalabad Chamber of Commerce and Industry and important negotiations were held on both sides.
He said that since Faisalabad is the textile city of Pakistan, the business communities of both the countries can benefit from each other’s experiences on textile trade from here.
Dr. Khurram Tariq said that Central Asia has historically been a trade partner of Pakistan with which Pakistan wants to increase its trade relations in the future.
He said that since Kazakhstan is the largest economy in Central Asia, mutual trade between the two nations is important for economic integration in the region.
It is pertinent to mention that Kazakhstan, a hydrocarbon and mineral-rich country has experienced impressive economic growth and the country is prone to the shocks in oil and extractive minerals market. Kazakhstan’s strategic location makes it a transit hub for emerging economies.
Kazakhstan’s export basket consists of mineral fuels, iron and steel, ores, slag and ash, copper, and inorganic chemicals. At the same time, the import basket is dominated by mechanical appliances, vehicles, electrical machinery, and pharmaceutical products.
Kazakhstan is Pakistan’s non-traditional trade partner and the main export basket consists of cereals, edible fruits and nuts, pharmaceutical, surgical, and leather products.
While Pakistan’s imports consist of inorganic chemicals, raw hides, iron and steel, and man-made filament, Keeping in view the socio-economic structure.
Pakistan needs to initiate PTA negotiation in the medium term with FTA in its long-term strategy for CARs.
For fruits and vegetables and other perishable items, cold storage cargo is not available to Pakistani exporters.
Besides this, now direct cargo flights are available between the two countries that can facilitate medicaments and other perishable items.
Payment challenges need to be considered by the State Bank of Pakistan by opening Pakistani banks and establishing strong linkages with local Kazaks banks for exporter facilitation.
