Pakistan Trade Spectrum
Pakistan’s Spaghetti Bowl includes preferential trade linkages with China, Sri Lanka, Malaysia, Indonesia, Iran, and Mauritius on bilateral basis. In terms of regional trade agreements, these extend to the seven South Asian countries of Afghanistan, India, Bangladesh, Bhutan, Nepal and Sri Lanka under SAARC, and to the Central Asian Republics (CARS) under ECOTA. This highlights the country’s resolve to expand and diversify its trade within the region, as beyond it. The cumulative tariff concessions and the expanding domestic manufacturing base positions Pakistan as an important partner in the regional trade.
According to the State Bank, Pakistan' s manufacturing sector has registered 5% growth in the recent months, which surpasses the initial target of 4.5% set as part of the economic resustication programme. The government envisages expansion in the national infrastructure through large-scale investment in the power and communications sectors. The setting up of additional thermal and nuclear power plants in the country, besides expansion in the existing set-up, indicates its resolve to add more more power to the economy. The plan to build a rail corridor from Xingiang in China to Gwadar, supplementing the existing road network between Pakistan and China, constitutes a giant step in economic diversification towards transshipoment economy. The outlet to the Middle East through Gwadar will reduce the export turn around for the Chinese goods and will draw equal benefits for Pakistan in a variety of ways.
On its part, the private sector and the representative trade organizations, including ICC Pakistan, will continue to play their role in the trade development and diversification of the country by adding to its dynamics.
Transit
Pakistan transit network already contains inter-governmental agreements with the following countries, showing the country's willingness and preparedness to participate in regional trade and transshipment in a significant manner. The logistics industry in Pakistan is assisting the government in realizing the true potential of these agreements. We believe that the true transit (and transshipment) potential of Pakistan will be realized with accession to the TIR Convention, 1970. With the rest of the region from Iran to Turkey, and to the Central Asian Republics, already TIR-compliant, only Pakistan has to fill up the missing link to complete the TIR map in this trade corridor.
1: Afghanistan
Afghanistan-Pakistan Transit Trade Agreement (APTTA) encapsulates two-way transit through Pakistan to the land-locked Afghanistan via Karachi and Lahore
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2: China
Pakistan and China have bilateral transport agreements for the carriage of goods by their respective national carriers into each other's territory
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3: Iran
Pakistan and Iran have bilateral transport agreements for the carriage of goods by their respective national carriers into each other's territory.
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4: Azerbaijan
Pakistan and Azerbaijan have bilateral transport agreements for the carriage of goods by their respective national carriers into each other's territory. This Agreement is supplemented by TTFA
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5: Uzbekistan
Pakistan has allowed Uzbekistan a land corridor through Gwadar for imports and exports. This is the first instance of transit to a foreign country via Gwadar. This Agreement is supplemented by the regional customs transit agreement TTFA
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Quadrilateral Agreement
Pakistan is part of the Quadrilateral Transit Agreement, which has been signed by China, Kyrgyz Republic, Kazkhstan, in addition to Pakistan, to provide a land trade route to each other
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Transit Transport Framework Agreement
Pakistan is part of the TTFA, concluded among the 10 ECO member countries, for the implementation of intra-regional transit.
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