Pakistan and UK Seek to Strengthen Trade Ties with New Agreement

Karachi: The Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Muhammad Aman Pracha, has underscored the importance of implementing initiatives to bolster trade relations between Pakistan and the United Kingdom. Speaking on a recently reached trade agreement, Pracha noted the intent to enhance economic collaboration and reduce trade barriers between the two nations.

The agreement calls for the establishment of joint working groups and regular review meetings, aiming to foster cooperation in sectors such as digital trade, renewable energy, agriculture, and pharmaceuticals. Pracha emphasized that a formal Free Trade Agreement (FTA) is crucial to significantly boost bilateral trade.

A “Trade Dialogue Mechanism Agreement” has also been signed, which aims to strengthen economic cooperation, explore trade opportunities, and eliminate barriers to promote mutual investment. Pracha highlighted that Pakistan stands to benefit from the UK’s Developing Countries Trading Scheme (DCTS), which could enhance exports in information technology, agricultural technology, and pharmaceuticals.

Engaging the Pakistani diaspora in the UK is seen as a pivotal step to promote trade, Pracha mentioned, noting the current trade volume at approximately £4.7 billion. He stressed the necessity of addressing non-tariff barriers hampering this trade.

While acknowledging the challenges in negotiating an FTA, Pracha pointed out that such an agreement aligns with the economic priorities of both countries. Although no bilateral FTA currently exists, efforts are underway to establish a foundation for a potential future agreement.

Pracha also highlighted the vibrancy of Pakistan’s technology and digital services sector, with the UK showing interest in leveraging Pakistani tech companies to access European and global markets. British development finance institutions are contributing to this initiative by promoting digital infrastructure and financial inclusion in Pakistan. Additionally, UK Export Finance is assisting Pakistani companies in expanding exports and forming partnerships with British firms. Pracha urged the Pakistani government to seize this opportunity.