KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Wednesday urged the government to gear up free trade agreement (FTA) with Korea to exploit existing opportunities and enhance bilateral trade between the two countries.
The chamber also stressed on reviving Pak-Korea Joint Trade Committee to enhance economic integration in the manufacturing, hydropower sector, SME, finance, transport and education sectors.
“Despite strong bilateral economic relationships, Pakistan’s exports to Korea stood at only $206 million in FY22 as compared to $170 million in FY21,” KCCI president Mohammed Tariq Yousuf said. He was speaking at Korea Pakistan Business Forum 2023 organised in a local hotel.
Pakistan’s average monthly exports to Korea remained at a meagre $23 million during the last 18 years, which was mainly because of the fact that Pakistani goods face higher tariffs as compared to their competitors, according to KCCI chief.
“Many Pakistani products including marble and granite, pharmaceuticals, cement, leather, rice and sports goods can find a good market in Korea, which the country can import from Pakistan.”
Yousuf mentioned that despite Pakistan’s ongoing economic challenges, various corporate results in the stock market had remained positive in 2022. He informed that multinational companies operating in Pakistan had also posted massive growth, which “clearly indicates Pakistan’s economic resilience”.
Appreciating Korean companies such as Lotte Pakistan, Hyundai Motor Group, and Samsung etc., he urged them to further enhance their production activities so that Pakistan’s overall industrial output could improve.
Commenting on South Korea’s New Village Movement that has become a global model for poverty eradication, KCCI chief said Pakistan’s agriculture sector holds 20 percent share of GDP, and over 50 percent population live in rural areas.
“Korean companies can help Pakistan in capacity building of its farmers and may uplift this sector through technology transfer which was badly needed to improve the agricultural yield. Korean corporations may also help the local economy by creating value addition in the textile sector, coastal belts and technology parks in various potential rural markets in Sindh, Punjab and Baluchistan.”
KCCI president stressed to explore joint ventures with Korea and investment in special economic zones under CPEC. “Korean businesses/ corporations can also take advantage of opportunities in Pakistan’s IT sector, forest conservation and recycling,” he said.
Yousuf was of the view that participation in each other’s trade fairs and single country exhibitions would be a great way for the business community of both countries to explore new trade avenues and promotion strategies.