PAKISTAN AND ASIA PACIFIC: TRADE RELATIONS AND FUTURE PROSPECTS ATIF IKRAM SHEIKH PRESIDENT, Federation of Pakistan Chambers of Commerce and Industry PRESIDENT, ECO Chambers of Commerce and Industry VICE PRESIDENT, Confederation of Asia Pacific Chambers of Commerce and Industry

The Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) is a leading
international trade organization that promotes trade and industry in the Asia-Pacific region.
Established in 1966, its mission is to foster economic cooperation, trade relations, and industrial
development among the countries in the region. CACCI comprises chambers of commerce and
industry from over 30 countries in the Asia-Pacific, uniting them on a single platform. The
organization was instituted when several countries in the Asia-Pacific region recognized the
need for a common platform to promote trade and industry on a regional level. Since then, it has
played a pivotal role in fostering economic development, trade cooperation, and industrial
modernization in the region. The organization's primary objectives are to reduce trade barriers
among member countries, expand investment opportunities, and promote the exchange of trade
policies.

CACCI's member countries include major economic powers in the Asia-Pacific, such as China,
Japan, South Korea, Australia, New Zealand, and Southeast Asian nations (members of the
Association of Southeast Asian Nations, ASEAN). Additionally, South Asian countries like
Pakistan, India, Bangladesh, and others are also members. The organization has undertaken
numerous initiatives to enhance trade among member countries, including trade agreements,
investment forums, and trade exhibitions. It has also been instrumental in advancing
agreements like Free Trade Agreements (FTAs) and the Regional Comprehensive Economic
Partnership (RCEP) in the region. The Regional Comprehensive Economic Partnership (RCEP)
is a free trade agreement among 15 Asia-Pacific countries, including Australia, Brunei,
Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the
Philippines, Singapore, Thailand, and Vietnam.

Pakistan has been a member of CACCI since 1985. Through this organization, Pakistan has
sought to strengthen trade relations with other Asia-Pacific nations. Key sectors of Pakistan's
economy, such as agriculture, textiles, IT, pharmaceuticals, fashion, footwear, and services;
stand to benefit significantly from CACCI’s platform. By utilizing this platform, Pakistan can take
substantial steps to boost investment and trade in these sectors. Pakistan's trade relations with
Asia-Pacific countries have a long historical foundation. The region is a significant trading
partner for Pakistan, facilitating imports and exports of various goods. Over the past few years,
trade relations have seen considerable growth, and further expansion is anticipated in the
future. While Pakistan stands to gain many advantages from CACCI, it faces challenges such
as political instability, inadequate infrastructure, and inconsistent trade policies. To overcome
these challenges, Pakistan needs to adopt sound economic policies, improve infrastructure, and
create a conducive environment for foreign investors.

By entering into free trade agreements with CACCI member countries, Pakistan can increase its
exports. Additionally, the forum can help attract foreign investment into Pakistan's economy.
Furthermore, Pakistan can acquire advanced technology and industrial expertise from
developed nations, aiding its industrial progress. Participating in CACCI-organized trade
exhibitions provides Pakistan with opportunities to introduce its products to international markets
and improve its trade policies by learning from others.

CACCI represents a vital organization for promoting trade and industry in the Asia-Pacific
region. By leveraging this platform effectively, Pakistan can seize opportunities to expand trade,
attract investment, and acquire modern technology. However, this requires addressing internal
challenges and adopting sound economic strategies. Utilizing CACCI effectively can strengthen
Pakistan's economy and enhance its role in regional trade.

To improve trade relations with ASEAN countries (Singapore, Malaysia, Indonesia, Thailand,
Vietnam, the Philippines, Myanmar, Cambodia, Laos, and Brunei), Pakistan must adopt several
measures. Strengthening these ties would be highly beneficial, given the economic stability of
ASEAN nations. Currently, the trade volume between Pakistan and ASEAN is limited,
necessitating improvements. Negotiating free trade agreements with ASEAN countries can help
reduce trade barriers. Participation in trade exhibitions and fairs in these countries can introduce
Pakistani products to new markets. Improved banking and financial systems on both sides can
facilitate trade transactions, while frequent trade delegations can strengthen relationships
further. Reducing tariff and non-tariff barriers is essential, as is upgrading Pakistan's digital
infrastructure to promote digital trade. Logistics and transportation improvements will ensure
smoother product delivery. Pakistani products must meet international standards to gain broader
acceptance. Additionally, trade missions should be made more effective, and special policies
must be crafted to enhance trade diplomacy. A comprehensive strategy to explore export
opportunities, eliminate trade barriers, and increase cooperation will allow Pakistan to expand
its trade volume significantly.

China is Pakistan's largest trading partner, with a steadily increasing trade volume. China's
investments in various sectors are further strengthening these trade relations. Similarly, South
Asian countries such as India, Bangladesh, Sri Lanka, and Nepal are significant trading
partners, with untapped potential for growth. Southeast Asian nations like Malaysia, Indonesia,
Thailand, and Vietnam, as well as other Asia-Pacific countries like Australia, Japan, and South
Korea, are also key trading partners for Pakistan. Expanding cooperation in these regions can
greatly benefit Pakistan. To achieve this, Pakistan must attract more investment and acquire
technical expertise from these countries to advance its industries.

According to the World Bank, Pakistan's total exports stood at $30,769 million, while its total
imports were $70,176 million in 2022. The country's trade deficit grew by 55.6% despite a
25.5% expansion in exports, which were outpaced by a 42.1% increase in imports۔ Regarding
trade partners, Pakistan's top export destinations include the United States, China, the United
Kingdom, the Netherlands, and Germany. Its top import sources are China, the United Arab
Emirates, Saudi Arabia, Indonesia, and Qatar. China, the United Arab Emirates, Saudi Arabia,
Indonesia, and Qatar are among Pakistan's top trade partners in Asia. The United Kingdom, the
Netherlands, and Germany are significant trade partners for Pakistan in Europe. The United
States is a major trade partner for Pakistan in North America.

As the President of the Federation of Chambers of Commerce and Industry, Pakistan's largest
trade organization, I believe that improving infrastructure is crucial for promoting trade activities.
Such improvements will only be possible if Pakistan's chambers of commerce and trade
associations are actively consulted and taken on board during policy formulation.