Industrialists and Karachi Chamber of Commerce and Industry (KCCI) leaders have asked for exploring more trade avenues in Thailand and finalising a free trade agreement (FTA) soon.
Echoing similar remarks at a meeting at the KCCI, Thailand Ambassador Rongvudhi Virabutr urged the chamber to foster and push the government to finalise the FTA as soon as possible.
He expressed the intent to accelerate discussions on the FTA as the trade deal was his top priority, though negotiations had been suspended for some time.
"We urge the business community in Karachi, particularly the KCCI, to advocate for timely conclusion of the FTA. While Pakistan has faced the challenge of trade deficit in previous FTAs, it is important to recognise that these agreements extend beyond goods trading and include services and investment – the key areas where both nations can benefit," he said.
The envoy called for increasing Thailand-Pakistan trade from its current value of $1.1 billion to $2 billion. Trade between the two countries had previously reached $1.8 billion before the Covid-19 pandemic, indicating that the target of $2 billion was achievable with concerted efforts.
"We can identify new sectors for cooperation and stimulate activities that will boost bilateral trade," he said.
Virabutr pointed out that Pakistan's exports to Thailand currently stood at around $150 million, with trade balance in favour of Thailand. He saw the potential to drive up exports to Thailand, particularly in fields of pharmaceutical, seafood, chemical, cement and the like.
He said approximately 60% of Pakistan's economy was driven by the services sector, which presented a wealth of opportunities for collaboration.
He also pleaded for reducing the cost of doing business, particularly through innovations like the Association of Southeast Asian Nations (Asean) single window system – a paperless platform for customs clearance within the Asean bloc. "We believe this system can be extended to the trade partners of Asean, including Pakistan, to scale down business costs. Pakistan's FTA with Malaysia makes you people eligible to benefit from the Asean single window paperless clearance system," he said and also proposed the organisation of an Asean trade fair in Karachi.
Thailand Consul General in Karachi Surashete Boontinand announced the introduction of an e-visa facility that would allow applicants to apply for visas online, eliminating the need to visit Thai consulate.
Earlier, KCCI Senior Vice President Ziaul Arfeen said despite the significant trade potential between the two nations, Pakistan's exports to Thailand remained relatively low at around $149 million while imports from Thailand reached $719 million in FY24.
There is a strong need to address this trade imbalance by exploring new avenues for collaboration. Both countries have expressed a strong commitment to concluding the FTA, which will open new trade vistas.
Talking to The Express Tribune, Hyderabad Chamber of Small Traders and Small Industry's (HCSTSI) former president Muhammad Farooq Shaikhani said the FTA could significantly enhance Pakistan's trade volume by reducing tariffs, increasing market access and attracting foreign investment. This will not only boost industrial expansion but also improve competitiveness of Pakistani products in the Thai market. He said the success of the agreement depended on well-balanced negotiations to ensure that local industries were not negatively impacted. Pakistan must focus on diversifying its exports to maximise benefits and avoid excessive reliance on limited sectors. Effective implementation, careful planning and continuous monitoring will be crucial for long-term success of this trade partnership.
He urged the government to actively pursue similar FTAs with other countries to strengthen Pakistan's industrial base. By securing new markets, reducing trade barriers and encouraging foreign direct investment, Pakistan can integrate into global supply chains, adopt advanced technologies and enhance industrial efficiency.
On top of that, he said trade agreements should be structured to protect domestic industries from unfair competition.
He said a well-planned trade policy could lead to job creation, economic diversification and sustainable growth. To fully capitalise on these opportunities, Pakistan must also improve its infrastructure and regulatory frameworks, ensuring fair competition and long-term economic resilience.
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