Pakistan eager to develop trade ties with Thailand, envoy says
Despite years of delay and the recent election at home, Pakistan is committed to further boosting economic ties with Thailand, said its ambassador.
In an interview with The Nation, Ambassador Sohail Mahmood said that this could be achieved through further negotiation on the free trade agreement (FTA) as well as the proposed Joint Trade Committee (JTC).
“The JTC will be the first step to discuss trade barriers and to boost trade volume,” he said. “The MoU [memorandum of understanding] is ready for signing.”
Commerce Minister Boonsong Teriyapirom was scheduled to visit Islamabad in February to sign the MoU, which would pave way for the inaugural JTC meeting. The trip was postponed, but the ambassador is hopeful that the MoU will be signed this year.
Bilateral trade recently crossed the US$1 billion (Bt29.93) mark. Major exports from Pakistan to Thailand were textile-related products, seafood products, metal ores and chemicals. Thai exports included automobiles and parts, chemical products, sugar, polymers, synthetic filaments and staple fibres and rubber products.
Negotiations on the FTA kicked off in 2005, but stalled due to political change in Thailand after which, all negotiations were subject to parliamentary approval.
For the ambassador, who completes his term in June, the FTA and JTC would pave the way for more joint ventures with Pakistan. Currently there are only a handful of Thai companies with an established presence in Pakistan, including Charoen Pokphand Foods, Siam Cement and Malee Sampran.
Mahmood said there were also opportunities in Pakistan for Thai companies to explore business in the gems and jewellery industry as well as the food industry. Add to this, the country’s 180 million population, its geographical location in Central Asia and proximity to the Gulf, and it’s a market with great potential, he said.
“Pakistan can be a hub for exports to these areas, while Thailand can be our springboard to Southeast Asia – the region that Pakistan has no significant relations with,” noted the ambassador.
Pakistan just held its general election this month, won by the Pakistan Muslim League.
Addressing Thai investors’ concerns of security, the ambassador said that most violence was in isolated border regions, while major areas of Pakistan were “free of violence and free from any kind of problems”, thus ensuring the safety of industries and the economy.
“It’s quite good for investment,” he said, adding that Pakistan is in need of infrastructure development in the areas of energy, roads and housing. He noted that Nawarat Patanakarn, a listed Thai construction firm, is now looking for opportunities there.
The ambassador said that both countries could also work on building a long-term relationship through educational ties. About 100 Pakistani students are now studying at the Asia Institute of Technology. To promote studies in Thailand, there are discussions to have a Pakistani corner at Thammasat University and establish academic links there, along with Chulalongkorn University. Meanwhile, some Thais are being given the Pakistan government’s scholarships for medical and engineering studies.
Last year, 56,000 Pakistanis visited Thailand. In January, Pakistan and Thailand agreed to further enhance bilateral relations in various fields, including trade and economic cooperation, tourism and defence.
