Free trade talks with Korea likely to start after June

Envoy says Korean banks will be pushed to open branches in Pakistan

FAISALABAD: South Korean Ambassador Dr Song Jong-hwan has voiced the hope that formal negotiations with Pakistan for a free trade agreement will start immediately after June this year and called trade liberalisation a necessary step for doubling the trade volume between the two countries.

Speaking to the business and trade community at the Faisalabad Chamber of Commerce and Industry (FCCI) on Monday, Song said the existing trade volume was far less than the potential and the two countries must explore it for their mutual benefit.

Quoting reasons for the unsatisfactory trade relationship, he said the absence of FTA and unavailability of trade-related information were the main factors behind the poor performance.

He pointed out that Pakistan and Korea had shared a similar agriculture base, but the latter switched from traditional agriculture to mechanised farming. “Korea is now considered among top 10 economies of the world and Pakistan will be able to follow us to gain economic prosperity.”

He revealed that last year he had visited 11 chambers of commerce in Pakistan and it was his third visit to the FCCI. The ultimate objective was to bridge the gap between business communities of the two countries.

The ambassador added there was already a large presence of Korean companies in Pakistan and more could be convinced to invest and start joint ventures.

Speaking about visa issues, he said he would direct the visa section to issue visas to all genuine businessmen, particularly on the recommendation letter of the FCCI.

“Similarly, Korean banks will also be encouraged to open branches in Pakistan, which will facilitate the business community of the two countries in finalising financial deals under a safe and reliable banking cover.”

Discussing the importance of textile, he said Korea had set up a textile section in the National Textile University, which would help to upgrade the existing textile sector of the city. Similarly, “we are also helping the University of Agriculture to produce agricultural appliances for increasing the per-acre yield.

The ambassador directed officials of Kotra - a state-funded trade and investment promotion agency - to review the proposal of setting up its office in Faisalabad in order to provide after-sales service to buyers of the Korean machinery.

FCCI Vice President Jamil Ahmad said trade between Pakistan and Korea in fiscal year 2014 stood at $1.03 billion.

The trade volume stood largely in favour of Korea as Pakistan exported $377.89 million worth of goods while its imports stood at $657.58 million.

As Pakistan had a growing youth population and the Korean government had allowed market access to unskilled workers, vocational and technical training programmes could help enhance productivity, Ahmad suggested.

Published in The Express Tribune, February 23^rd,  2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.