To enhance investment and trade volume, Pakistan and Korea are looking forward to sign Free Trade Agreement (FTA). The two countries already have bilateral trade and diplomatic relations for over three decades. Pakistan’s Commerce Minister had visited the Republic of Korea in July to discuss bilateral trade and possibilities of FTA.

However, it will take at least four to five years, as the process is still at initial stage said Muhammad Waseem Vohra, CEO, Eastern Enterprises, and Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI), the apex trade body of Pakistan. Trade figures would have to be compared by the two nations and they would also have to scrutinise certain other implications before finalising everything.

In view of its experience with China, Pakistan needs to negotiate the FTA carefully. China exports goods to Pakistan worth $12 to 13 billion annually against Pakistan’s exports amounting hardly to $2.5 billion causing closure of several local industries in the country as the zero tariffs under FTA benefit China.

However, with Korea, this should not be the case, as the current trade volume of Pakistan with Republic of Korea is around one billion dollars, which could be augmented to a great level if Korea allows access to its market.

Fpcci.org.pk