In a bid to diversify export markets, Pakistan is negotiating a transit trade agreement with Kazakhstan and Tajikistan.
Pakistan has traditionally depended on the export markets of the Middle East, United States and European Union (EU). However, Central Asian states offer a big potential for exports, which remains an untapped market for Pakistan.
Kyrgyzstan’s Deputy Minister of Foreign Affairs Aibek Artykbaev on Friday called on Federal Minister for Commerce and Investment Syed Naveed Qamar.
The meeting was attended by Special Secretary Commerce Ahmed Mujtaba Memon and Additional Secretary Syed Hamad Ali.
Naveed Qamar stated that the “government’s vision is to make Pakistan a trade, transit and shipment hub, ensuring connectivity with Afghanistan and beyond. In this regard, Pakistan has signed a transit trade agreement with Uzbekistan and is negotiating another agreement with Kazakhstan and Tajikistan,” he added.
During the previous government of PML-N, former prime minister Nawaz Sharif had made sustained efforts to explore the markets of Central Asia and even Russia to tap the export potential. Nawaz Sharif also visited several Central Asian states to advance progress on transit trade agreements.
However, during the previous administration of Pakistan Tehreek-e-Insaf (PTI), this momentum could not continue. A major obstacle was the Kabul government of the time, which created many hurdles.
In addition, after the launch of China-Pakistan Economic Corridor (CPEC), Pakistan and China are looking at markets of Central Asia for their trade potential.
Pakistan is also the best option for the landlocked Central Asian countries like Tajikistan. Likewise, Gwadar Port offers trade opportunities for Central Asian states and Russia.
There has been the Quadrilateral Traffic and Transit Agreement (QTTA) between Pakistan, China, Kyrgyzstan and Kazakhstan, which is part of CPEC. This agreement offers an excellent communication route between Central Asia and Gwadar Port in the Arabian Sea, Naveed Qamar added.
During the meeting, both sides discussed ways and means of increasing trade volume between the two countries and enhancing cooperation in other areas of mutual interest.
Naveed Qamar said that promoting international trade, transit and investment is the pivot around which Pakistan seeks to devise its economic policies.
Bilateral trade between Pakistan and Kyrgyzstan stood at $4.27 million during fiscal year 2021-22, which does not reflect the true potential of trade between the two countries, the minister stressed. Kyrgyzstan is also part of the CASA power project, under which Pakistan will import 1,000 megawatts of electricity from Tajikistan.
The main reasons for such a low level of trade volume between the two countries include limited knowledge of each other’s markets and absence of sound banking channels, he added.
Commerce minister said that the Pak-Kyrgyzstan Trade and Investment Forum was held from April 19-20, 2022 in Islamabad and on April 22 in Lahore. He expressed the desire that such activities should be held on a regular basis in the future.
Naveed Qamar maintained that a draft MoU on the establishment of the Joint Working Group has been shared with the Kyrgyz Republic and its response was awaited.
Published in The Express Tribune, August 20th, 2022.
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