Pakistan is intensifying efforts to deepen trade and economic cooperation with the Association of Southeast Asian Nations (ASEAN) as the country seeks to diversify its export destinations and capitalize on one of the world’s fastest-growing economic regions.
Pakistan eyes greater trade with ASEAN to unlock new economic opportunities
By Shams Abbasi
ISLAMABAD, Jul 2 (APP): Pakistan is intensifying efforts to deepen trade and economic cooperation with the Association of Southeast Asian Nations (ASEAN) as the country seeks to diversify its export destinations and capitalize on one of the world’s fastest-growing economic regions.
ASEAN, comprising Indonesia, Malaysia, Brunei, Cambodia, Laos, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, represents a market of more than 680 million people with a combined gross domestic product (GDP) exceeding US$4 trillion, offering immense opportunities for trade, investment and industrial collaboration.
Pakistan’s trade with ASEAN has witnessed steady growth in recent years, with Malaysia, Indonesia, Thailand, Singapore and Vietnam emerging as its major trading partners. The country exports textiles and garments, rice, leather products, surgical instruments, sports goods, fruits, seafood and pharmaceutical products to ASEAN markets, while importing palm oil, machinery, electrical equipment, chemicals, rubber products, electronics and industrial raw materials.
Malaysia remains one of Pakistan’s closest economic partners in Southeast Asia. The Pakistan-Malaysia Closer Economic Partnership Agreement (MPCEPA), which came into force in 2008, has played a significant role in facilitating bilateral trade by reducing tariffs and improving market access for businesses in both countries.
Trade with Indonesia has also expanded under preferential trade arrangements, particularly benefiting Pakistan’s exports of kinnow, textiles and pharmaceutical products.
Singapore serves as a regional financial and logistics hub for Pakistani exporters seeking greater access to ASEAN markets, while Vietnam and Thailand continue to offer promising opportunities in agriculture, manufacturing, food processing and tourism.
Despite the encouraging progress, experts believe Pakistan’s trade with ASEAN remains well below its true potential.
High logistics costs, limited direct shipping links, non-tariff barriers, inadequate trade promotion and insufficient awareness among exporters continue to impede stronger commercial engagement.
The government’s “Look East” policy, complemented by initiatives of the Trade Development Authority of Pakistan (TDAP), aims to strengthen economic ties with Southeast Asia through enhanced business-to-business engagement, trade exhibitions, investment promotion and improved regional connectivity.
Talking to APP here on Thursday, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said ASEAN possesses enormous potential to serve as a catalyst for Pakistan’s economic growth by expanding bilateral trade and investment.
He said Malaysia and Indonesia, in particular, could become strategic partners in developing Pakistan’s halal industry and significantly boosting exports of halal-certified products to ASEAN markets.
President of the Islamabad Chamber of Commerce and Industry (ICCI), Sardar Tahir Khan, also underscored the importance of strengthening economic engagement with ASEAN.
Speaking to APP, he said ASEAN’s over US$4 trillion economy presents tremendous opportunities for Pakistani businesses and urged the country’s private sector to actively explore the region’s expanding markets.
He said the ICCI would continue to facilitate stronger business linkages between Pakistan and ASEAN countries, especially Malaysia and Indonesia, which could serve as gateways for expanding Pakistan’s commercial footprint across Southeast Asia.
Beyond conventional merchandise trade, analysts believe Pakistan has considerable potential to enhance cooperation with ASEAN in information technology, halal food production, renewable energy, tourism, higher education and the digital economy.
Pakistan’s rapidly expanding IT industry, in particular, stands to benefit from partnerships with technologically advanced economies such as Singapore and Malaysia.
With global supply chains undergoing significant transformation, stronger economic engagement with ASEAN offers Pakistan an opportunity to diversify exports, attract foreign investment and integrate more effectively into regional value chains, contributing to sustainable economic growth and enhanced competitiveness in Asian markets.
