“We are hopeful that today’s discussions on bilateral trade will provide a major impetus for trade ties between Korea and Pakistan,” says envoy. PHOTO: ispr.gov.pk
He was speaking at a big gathering of Pakistani and Korean businesspersons who had gathered to celebrate the 30th anniversary of diplomatic ties between the two countries. The event focussed on business ties and was organised by the Embassy of the Republic of Korea in collaboration with the Korea-Pakistan Business Forum here at a local hotel.
“This day is important for us, as it is being celebrated at a time when a pro-business Prime Minister, Nawaz Sharif, has his first day in office,” Choi said. “We are hopeful that today’s discussions on bilateral trade will provide a major impetus for trade ties between Korea and Pakistan.”
“Trade is a win-win situation. We are focusing on bilateral trade because this will be beneficial for both countries. The current $1.6 billion trade between Korea and Pakistan is too small, and this should grow fast in coming years,” he said.
Tariq Ikram, former chief executive of the Trade Development Authority of Pakistan (TDAP), spoke right after Choi and set the tone of the discussion. He said that diplomatic relations between Korea and Pakistan are excellent, but there is a communication gap in the private sector, especially from Pakistan’s side.
Korea annually imports 14 items worth $17 billion, including wheat and maize, from different countries of the world. Pakistan exports all these items to different countries except Korea, Ikram observed, citing his recent research on bilateral trade between the two countries.
“This lack of understanding of the Korean market on part of Pakistani exporters is one of the biggest reasons why bilateral trade with Korea is growing slowly,” he said.
Choongjae Cho, who is looking after the South Asian chapter of the Korean Institute for International Economic Policy, said that trade and commerce between Korea and India has been growing steadily if compared to Korea’s trade with Pakistan, despite the fact that the nature of both Indian and Pakistani economies is very similar.
A decade ago, bilateral trade between Korea-Pakistan and Korea-India was growing at a similar ratio, but the situation has completely changed today. As of now, Korea and India are targeting bilateral trade to the tune of $40 billion, whereas Pakistan and Korea do not even have a bilateral trade target before them, Cho said.
He also said that Korean Foreign Direct Investment (FDI) in India is $2.75 billion, while there are 615 Korean companies operating in India. On the other hand, Korean FDI in Pakistan is just $89 million, and only 32 Korean companies are operating in Pakistan.
Cho, who had especially flown to Pakistan to speak to the gathering, stressed that a free trade agreement (FTA) is the most effective way to increase bilateral trade. “Pakistan and Korea should immediately finalise FTA negotiations and simplify visa and travelling procedures to increase bilateral trade,” he added.
Dean and Director of the Institute of Business Administration-Karachi Dr Ishrat Husain, who was the lead panellist among the economic experts present, said that Korean companies are transferring technologies to different countries, and Pakistani businesspersons should take advantage of this situation.
“It is my humble advice to Pakistani businesspersons that they adopt a policy of looking eastwards. You have to go out for opportunities. It is East, not West, where you see dynamism and growth,” he commented.
Published in The Express Tribune, June 7th, 2013.
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far from the fact.Pakistan should rather compare itself with Bangladesh.
" In 2009, the two-way trade between Bangladesh and South Korea was equivalent to US$ 1.185 billion"
this was in 2009,the current trade will be the same as that Pakistan has with Korea.The military comparison is different form economic comparison,while it is good to compare military,comparing the scale of trade and economies with India shows how much they have come to understand.