In a strategic move to invigorate its trade relations, Pakistan has revealed plans to establish nine new trade missions across Africa, Europe, and Asia.
This decision comes in the wake of stagnant exports, which have hovered around the $25 billion mark, lagging behind its peers.
The lack of advancement in export figures is attributed to the ineffectiveness of existing trade missions and inconsistent domestic policies.
The initiative, requiring an annual budget of Rs70 million for the new missions, is set to be funded in the upcoming 2024-25 fiscal year budget by the Pakistan Muslim League-Nawaz (PML-N)-led government.
According to commerce ministry officials, the expansion will include two missions each in Africa and Europe, with an additional five in Asia.
This plan has received formal approval from the Special Investment Facilitation Council (SIFC), which also sanctioned the requisite funding to be sought in the FY25 budget.
This move is partly influenced by the “Look Africa” policy, aimed at tapping into the South African market’s vast potential, estimated at $100 billion.
Despite the large market, Pakistan’s trade footprint in Africa has been minimal, with exports barely surpassing the $4 billion mark in the fiscal year 2019-20.
The commerce ministry attributes this to a lack of engagement with African nations, a situation it hopes to remedy with the establishment of new trade missions.
In Europe, where Pakistan benefits from the GSP Plus status, resulting in boosted export volumes through duty incentives, the new missions aim to deepen engagement and secure a larger market share.
Additionally, the focus on Asia, particularly Central Asia, is seen as a counter to the active Indian influence in the region.
The previous PML-N administration under Nawaz Sharif had shown a keen interest in this area, aiming for a free trade agreement with the Eurasian Economic Union (EEU), though diplomatic hurdles with Armenia have stalled progress.
