PIDE holds moot: Speakers for export-oriented approach to trade accords

ISLAMABAD: Speakers at a roundtable conference on Friday called for an export-oriented approach to the country’s trade agreements, noting that imports from regional trade agreement (RTA) partners had grown much faster than exports since 2000. They stressed that the government must renegotiate existing agreements to secure better market access and ensure effective implementation to boost regional exports.

The conference, titled “From Signing to Exporting: Exploring the Export-Promoting Role of Trade Agreements,” was organised by the Pakistan Institute of Development Economics (PIDE). Speakers observed that Pakistan’s lag behind regional peers in trade facilitation underscored the need for simpler customs procedures, paperless processes, and inclusive reforms to unlock significant export potential. They said the right reforms could make Pakistani businesses more competitive in global markets.

Participants included representatives of the WTO, the Economic Advisory Group, the Pakistan Business Council, APTMA, the EXIM Bank of Pakistan, Pakistan Single Window, IBA, and SPRC, among others. Dr Uzma Zia, Senior Research Economist, PIDE, moderated the session.

Dr Amjad Masood, Chief of Research and Director, CTLI, presented the report’s key findings. Since 2000, imports from RTA partners have grown far faster than exports, so that each dollar of imports is now matched by only about 20 cents of exports. The report proposes an export-oriented RTA framework built on export-focused negotiation, alignment with industrial policy, demand-based partner selection, SPS access alongside tariff cuts, deeper agreements, and a KPI-based performance review at the Ministry of Commerce. It also maps this framework against Pakistan’s existing agreements, identifying the provisions already in place, the main gaps, and the clauses and actions needed to close them.

Opening the discussion, Dr Ahmad, former Ambassador of Pakistan to the WTO and the Chair of the WTO Trade Dispute Arbitration Panel, welcomed the study as timely. He noted that Pakistan’s latest agreement, with Turkiye, covers only about 2 percent of its trade, and that apart from the agreement with China, none of Pakistan’s RTAs has succeeded.

He attributed this partly to high domestic protection, which led business interests to push for weaker agreements, and stressed that negotiation and implementation matter as much as the concessions exchanged.

Dr Vaqar Ahmed, Member of the Economic Advisory Group and Team Lead, Oxford Policy Unit, argued that zero tariffs alone would not sustain long-term growth, whereas a higher frequency of trade would. He suggested treating FTA offers as a step towards unilateral liberalization even while negotiations continue, opening trade with all neighbours with a strong focus on connectivity, and bringing all provinces on board.

Dr Hassan Butt, Senior Advisor, CEEC, emphasized economic diplomacy and inter-ministerial coordination, noting that many MoUs signed through embassies are never implemented. Sarrah Javad of APTMA observed that the market access Pakistan secures often misses the tariff lines that matter to its exporters. Phase II of the China–Pakistan FTA added access on 313 tariff lines, but many of these are products Pakistan does not export at all. Javed Kureishi, CEO, Pakistan Business Council, called for clearly designated leads for review processes, backed by a proper follow-up protocol.

Sarmad Pretu of the EXIM Bank of Pakistan identified collateral requirements as a key constraint on SMEs’ access to export finance and outlined how the Bank’s support for exporters has evolved.

Dr Zafar Mahmood, Professor, NUST, argued that Pakistan’s problem is not too few trade agreements but a failure to translate preferential access into export competitiveness, and called for more active economic diplomacy.

Dr Adil Nakhoda, Chairperson of the EAG, urged Pakistan to pursue deeper trade agreements and lower its MFN tariffs to integrate into global value chains.

Copyright Business Recorder, 2026