Pakistan FTA expedited

Thailand is revving up free trade agreement (FTA) talks with Pakistan, aiming to wrap up the negotiations next year.

Sirinart Chaimun, director–general of the Trade Negotiation Department, said she will lead senior officials to hold another talk with Pakistani counterparts next month.

Thailand held the first round of formal FTA dialogue with Pakistan in Bangkok in September, hoping not only to boost trade with Pakistan but also utilise the country as the threshold to western China, Central Asia and the Middle East, particularly for Muslim consumers.

The first round mainly covered the FTA structure and negotiation plans and the focus of each round of talks, while the second round will focus mainly on market access for goods and trade facilitation.

The first round followed the two countries’ third Joint Trade Committee meeting in Islamabad from Aug 12-13.

Ms Sirinart said the trade pact, once implemented, will generate maximum benefits for Thailand and Pakistan, as it will get rid off trade obstacles not only in the form of tariffs but also non-tariff measures, increasing the competitiveness of both countries.

“Currently, Thailand and Pakistan have significantly expanded bilateral trade and investment,” she said.

“A number of Thai investors including Siam Cement Plc, Thai Urethane Group and Charoen Pokphand Group have established their presence in Pakistan.”

She said the FTA will enhance investment and export opportunities for Thailand, as Pakistan has a population of 210 million, of which 30 million have high purchasing power.

Pakistan’s location also makes it a gateway for product distribution to other regions such as western China, central Asia and the Middle East.

Pakistan is already one of Thailand’s most important trade partners, ranked second in South Asia after India.

Bilateral trade between Thailand and Pakistan has steadily increased over the last five years, with average growth of 7.02% a year. Last year, bilateral trade amounted to US$1.02 billion.

During that period, Thailand enjoyed an annual trade surplus over Pakistan averaging $777 million.