Challenges surface in trade negotiations between Pakistan and ASEAN
Chillin' Out with ASEAN: Pakistan's Journey Towards Free Trade
Hangin' with ASEAN ain't easy for Pakistan, man. Seems like they're hit with some roadblocks in their quest for a Free Trade Agreement (FTA), and it all boils down to their status as a Sectoral Dialogue Partner rather than a Full Dialogue Partner. Throw in Singapore's stubborn refusal to back Pakistan's promotion, and you've got a recipe for trade troubles.
In the early '90s, ASEAN (that's the Association of Southeast Asian Nations, for those out of the loop) slapped Pakistan with the Sectoral Dialogue Partner (SDP) status, marking the start of their formal cooperation. Fast forward a couple of decades, they had their first official powwow in Islamabad, focusing on trade, tech, tourism, and more.
But things got serious in '99 when they established the ASEAN-Pakistan Joint Sectoral Cooperation Committee (APJSCC). Since then, they've had seven meetings, with the last one happenin' in Jakarta back in '23. During one of those get-togethers in '10, Pakistan proposed negotiations for an FTA, man.
Now, here's the kicker: while ASEAN's been friendly with six Full Dialogue Partner countries (namely China, Australia, New Zealand, Japan, South Korea, and India), ALL of 'em got a signed FTA deal going. But since Pakistan's still just an SDP, it ain’t so easy for 'em.
On February 6, '25, they met again at the ASEAN Headquarters and high-fived each other about strengthening their partnership. They took a look at the progress made in the first year of their ASEAN-Pakistan Sectoral Dialogue Partnership: Practical Cooperation Areas (PCA), which is set to run from '24 to '28. They celebrated some progress in areas like trade, investment, and more, but they still felt there was lots of room for growth.
To move forward, ASEAN encouraged Pakistan to support their Community Vision 2045 and its Strategic Plans. They also wanted Pakistan to work closely with ASEAN across the four key areas of cooperation of the ASEAN Outlook on the Indo-Pacific (AOIP). ASEAN even suggested collabin' with their centers of excellence.
So, to make some real shifts, Pakistan's been takin' a strategic approach. They're tryin' to beef up their bilateral ties with individual ASEAN countries, hopin' it'll help them climb the partnership ladder eventually.
Pakistan and Malaysia already got a Comprehensive Economic Partnership Agreement goin' on since '07, coverin' trade, services, and investment. They're even reviewin' and revising this deal to boost their economic cooperation.
Pakistan and Indonesia signed a Preferential Trade Agreement in '12 to pump up their bilateral trade, and they're thinkin' about expandin' it now. Pakistan and Thailand kicked off negotiations for an FTA in '15, but negotiations have since halted. Pakistan proposes a Preferential Trade Agreement instead now.
Recently, Pakistan set up a trade mission in Singapore to build up their economic ties and explore new trade opportunities. They also shared a draft MOU for a joint trade center, but Singapore thinks they gotta boost B2B exchanges first.
Pakistan established a trade mission in the Philippines last year and hosted some delegates from the Philippines at flagship events. They're also talkin' about an FTA with Vietnam soon. Pakistan and Cambodia got their first Joint Trade Committee meetin' in '25, a step towards deeper trade relations.
So, that's where things stand, man. Pakistan's got a long way to go, but they ain't quittin'. They're keepin' their eye on the ball, tryin' to build the foundation for a comprehensive ASEAN-Pakistan FTA in the future.
[1] https://www.dawn.com/news/1660801[2] https://www.thenews.com.pk/print/800901-asian-dragon-to-provide-aid[3] https://tribune.com.pk/story/2388806/asean-stalls-pakistans-aspirations[4] https://www.n pray.gov.pk/islaam/islaam-articles/articles/asean-stalls-pakistans-aspirations
Overall, Pakistan is grappling with challenges related to its current Sectoral Dialogue Partner status with ASEAN and opposition from key ASEAN members like Singapore, complicating its FTA negotiations. This limitation restricts Pakistan’s negotiation leverage and access within ASEAN decision-making forums, while limited private sector engagement and concerns have further added to the diplomatic challenges. To overcome these hurdles, Pakistan is taking a pragmatic, step-by-step approach by focusing on deepening bilateral trade and economic ties with individual ASEAN member countries before pursuing a comprehensive ASEAN-Pakistan FTA.
- In order to overcome hurdles related to their position as a Sectoral Dialogue Partner with ASEAN, Pakistan is focusing on increasing their interest in private sector engagement and deepening bilateral trade and economic ties with individual ASEAN member countries.
- Despite facing opposition from key ASEAN members like Singapore, Pakistan is pursuing financial opportunities by proposing Preferential Trade Agreements instead of Free Trade Agreements with countries like Thailand and Vietnam, with the goal of building the foundation for a comprehensive ASEAN-Pakistan Free Trade Agreement in the future.
