ISLAMABAD: Pakistan is reportedly facing challenges in negotiation of Free Trade Agreement (FTA) with ASEAN (Association of Southeast Asian Nations) due to her status of a Sectoral rather than Full Dialogue Partner, compounded by Singapore’s opposition to Pakistan’s elevation to full partnership status, sources in Commerce Ministry told Business Recorder.
Pakistan was granted Sectoral Dialogue Partner (SDP) status by ASEAN in 1993, marking the beginning of formal cooperation. The first official meeting establishing ASEAN-Pakistan Sectoral Dialogue Relations was held in Islamabad in 1997, initially focusing on key areas including trade, industry, investment, science and technology, tourism and human resource development.
The relationship was further institutionalised in 1999 with the creation of the ASEAN-Pakistan Joint Sectoral Cooperation Committee (APJSCC), which has since convened seven times, most recently in Jakarta in September 2023. During the 4th APJSCC meeting in 2010, Pakistan formally proposed negotiations for a Free Trade Agreement (FTA) with ASEAN.
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Currently ASEAN has signed Free Trade Agreements with six countries (China, Australia, New Zealand, Japan, South Korea and India), all of which are its Full Dialogue Partner countries.
On February 6, 2025, ASEAN and Pakistan reaffirmed commitment to further deepen their partnership at the 8th Meeting of the ASEAN-Pakistan Joint Sectoral Cooperation Committee held at the ASEAN Headquarters Secretariat in Jakarta
The meeting noted the progress made in the first year of implementation of the ASEAN-Pakistan Sectoral Dialogue Partnership: Practical Cooperation Areas (PCA) (2024-2028). Both sides recognised notable cooperation in some areas such as trade and investment; business-to-business linkages; science, technology, and innovation; information and media; and human resource development.
ASEAN and Pakistan shared the view that there remain tremendous opportunities for closer collaboration and recognised the need to work closely to tap the full potentials of the partnership for mutual benefit.
ASEAN encouraged Pakistan to support the forthcoming ASEAN Community Vision 2045 and its Strategic Plans while actively undertaking practical cooperation with ASEAN across the four identified key areas of cooperation of the ASEAN Outlook on the Indo-Pacific (AOIP).
ASEAN also encouraged Pakistan to support the implementation of the Master Plan on ASEAN Connectivity 2025 (MPAC) and the Initiative for ASEAN Integration (IAI) Work Plan IV, and welcomed collaboration with ASEAN centres of excellence.
Looking ahead, they explored opportunities to continue strengthening collaboration in the areas of mutual interest as guided by the PCA 2024-2028, including combating transnational crime, peace and reconciliation, trade and investment, digital economy and cybersecurity, business-to-business networking and linkages, food security, halal industry, energy security, tourism, renewable energy, circular and green economy, infrastructure development, disaster management, climate change, education; human resource development, media, health, climate-change, disaster management, as well as, people-to-people exchanges.
To overcome this challenge and to deepen its ingress in ASEAN, Pakistan has adopted a strategic shift toward strengthening bilateral relations with individual member states within ASEAN region. This approach aims to build stronger economic and political ties that could eventually facilitate Pakistan’s transition to Full Dialogue Partner status and revive prospects for a comprehensive ASEAN-Pakistan FTA.
Pakistan and Malaysia signed the Malaysia-Pakistan Comprehensive Economic Partnership Agreement (MPCEPA) in 2007, establishing a free trade agreement between the two nations. This agreement is Pakistan’s first-ever comprehensive partnership agreement, covering goods, services and investment. Currently, both countries are engaged in review and revision of this existing FTA to further enhance bilateral trade and economic cooperation.
Pakistan and Indonesia signed a Preferential Trade Agreement (PTA) in 2012 to boost bilateral trade. The two nations have agreed to look into further expansion of the PTA in light of the Framework Agreement signed by the two in 2005.
Pakistan and Thailand initiated negotiations on signing of an FTA in 2015. Both sides held nine rounds of negotiations after which the negotiations have come to a pause. Recently, Pakistan has proposed to negotiate a Preferential Trade Agreement (PTA) instead.
Pakistan has recently established a trade mission in Singapore to strengthen bilateral economic ties and explore new trade and investment opportunities. Pakistan has also shared a draft MOU for establishing JTC with the Singapore. Singapore side is of the opinion that both countries first need to increase B2B exchanges and interaction. Opening of Pakistan’s Trade Mission will facilitate these exchanges.
Pakistan opened its trade mission in Manila last year, to enhance bilateral trade relations and foster economic cooperation with the Philippines. As a result, for the first time, delegates from Philippines have participated in flagship events of TDAP.
Pakistan and Vietnam have initiated negotiations to explore the possibility of signing a Preferential Trade Agreement (PTA) during their upcoming 5th Joint Trade Committee (JTC) meeting on July 10-11, 2025, as part of efforts to strengthen bilateral trade relations.
Pakistan and Cambodia have established their first institutional mechanism, a Joint Trade Committee (JTC), with the inaugural meeting taking place in January 2025 during the Commerce Minister’s visit to Phnom Penh.
Copyright Business Recorder, 2025
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