Image credit:Armen Press
Prime Minister Shehbaz Sharif has highlighted the potential of the South American market to significantly bolster Pakistan’s economy, following the federal cabinet’s approval of a new trade agreement. The decision, which was announced on Monday, marks a strategic move by the Pakistani government to diversify its trade partnerships and tap into emerging markets beyond its traditional partners in Asia, Europe, and North America.
Speaking at a press conference in Islamabad, Prime Minister Sharif emphasized the importance of expanding Pakistan’s economic horizons. The trade agreement, approved unanimously by the federal cabinet, outlines a framework for enhancing trade and investment ties with South American nations. It includes provisions for reducing tariffs, improving market access for Pakistani goods, and fostering cooperation in various sectors such as agriculture, textiles, and pharmaceuticals. The agreement also aims to promote joint ventures and partnerships between businesses in Pakistan and South America.
One of the key components of the agreement is the establishment of a preferential trade agreement (PTA) with Brazil, Argentina, and Chile—three of the largest economies in South America. This PTA is expected to lower trade barriers and facilitate easier access to South American markets for Pakistani exporters, particularly in sectors where Pakistan has competitive advantages, such as textiles and Agro-based products.
Prime Minister Sharif noted that the South American market, with its growing middle class and demand for a wide range of goods, could become a significant destination for Pakistani exports. He also pointed out that the agreement could help Pakistan diversify its export base, reducing reliance on traditional markets and mitigating the risks associated with economic fluctuations in those regions.
The government has also announced plans to send trade delegations to South America in the coming months to explore business opportunities and strengthen bilateral ties. These delegations will include representatives from key industries, who will engage with their counterparts in South America to identify potential areas of collaboration.