Korean envoy concerned over 27% decline in trade

Wants both countries to work on enhancing cooperation

KARACHI: The absence of a Free Trade Agreement (FTA) between Pakistan and South Korea and a lack of understanding of respective markets are the two main reasons for the continuous decline in bilateral trade, said Korean Ambassador to Pakistan Song Jong-Hwan.

During his visit to the Karachi Chamber of Commerce and Industry (KCCI), he said Korea-Pakistan trade, after touching the two-way trade volume at $1.6 billion in 2012, had decreased by 27% to $1.17 billion in 2014.  “This is a matter of serious concern and needs urgent attention, considering Pakistan’s potential and Korea’s trade volume of $1 trillion with the rest of the world.”

Referring to the Korean Prime Minister’s visit to Pakistan in mid-April 2014, during which both sides agreed to explore possibilities of FTA, he said that Federal Minister for Commerce Khurram Dastgir also visited Korea in July 2015, where an agreement for a joint feasibility study on FTA was inked between the two research institutes of Korea and Pakistan with a mandate to conclude the study within a year.

Furthermore, underscoring the need for business-to-business (B2B) matchmaking and networking, which were essential to capturing the real trade potential in the two emerging markets, he said, “In this regard, exchange of business delegations can play a vital role to increase the trade volume.”

“Pakistan’s participation in trade expos in Korea and similarly Korean businessmen’s participation into Pakistan’s business events such as Expo Pakistan in Karachi and BOI International investment Conference in Islamabad would be meaningful to revive the two-way trade volume,” he added.

He assured round-the-clock support to the KCCI by the Korean Embassy, Korean Consulate in Karachi and Korean Investment & Trade Promotion Agency (KOTRA) in order to promote trade.

Speaking on the occasion, the KCCI President said, “We want to promote investment in the country and would do everything to develop Pakistan-Korea business cooperation.

“Pakistan has also offered Korea to establish a dedicated Special Economic Zone for Korean investors in Pakistan, which, if established, would prove favourable for both countries,” he added.

Bilateral trade between Pakistan and Korea currently stands at around $1 billion. During fiscal year 2015, Pakistan’s total exports to Korea stood at $336.42 million whereas Pakistan’s imports from Korea were $672.68 million.

Published in The Express Tribune, November 26^th, 2015.

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