Global trade fragmentation creates opportunities for Pakistan, says Aurangzeb

Pakistan sees opportunities to expand trade with regional economic blocs amid growing fragmentation in global trade, Finance Minister Muhammad Aurangzeb said, as the country seeks to diversify its economic partnerships and strengthen trade resilience against geopolitical shocks.

“We are sitting here in Thailand. I’m going to be meeting the Thai finance minister,” Aurangzeb said in an interview with Channel News Asia, adding that recent global developments offered Pakistan an opportunity to explore markets beyond its established trading partners.

“At times you have to, as they say, there’s opportunity in adversity,” he said.

“So right now we have fantastic trade relationships. Our largest trading partner is actually the US, followed by the EU. But it now allows us to explore other regional blocks where there is huge potential both ways.”

Aurangzeb said Pakistan was pursuing economic engagement with the Gulf Cooperation Council (GCC), Central Asian republics and the Association of Southeast Asian Nations (ASEAN), where he sees significant potential for trade in both directions.

He cited Pakistan’s engagement with Malaysia and Indonesia, noting that Prime Minister Shehbaz Sharif had visited Malaysia several times, while Malaysian and Indonesian leaders had also visited Pakistan.

He said Pakistan was seeking to move its relationships with international partners from aid towards trade and investment.

The strategy also extends to China and the United States, with Aurangzeb describing Pakistan’s approach to the two countries as an “and-and” discussion. “I think from our perspective, we are going to work with both very closely.”

China remains a longstanding strategic partner, he said, adding that the first phase of the China-Pakistan Economic Corridor (CPEC) focused on infrastructure, including roads, ports and power projects.

The second phase is focused on monetising that infrastructure through business-to-business cooperation and joint ventures, some of which, he said, were already producing goods for export.

The minister also highlighted the importance of Gulf countries to Pakistan’s economy, particularly because of trade and remittance flows. “We hit $41.6 billion in remittances last year. We expect that number to touch $44 billion this year,” he said.

His remarks come as Pakistan seeks to broaden its economic partnerships amid geopolitical uncertainty and changes in global trade patterns.