Pakistan is exploring new export markets in Afghanistan and Central Asia, according to recent statements from Commerce Minister Jam Kamal Khan. The minister emphasized that addressing existing “political and connectivity challenges” could significantly enhance trade opportunities with these regions.
Traditionally, Pakistan’s exports have been focused on Western economies, China, and the Gulf Cooperation Council (GCC) countries. Now, Pakistan aims to diversify its export markets by targeting the landlocked Central Asian Republics (CARs) and potentially expanding into the South African region.
In the period from July to February 2024, exports to five Central Asian countries—Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan—grew by 21.17%, reaching $158.07 million compared to $130.45 million in the same period the previous year.
The Commerce Minister highlighted the importance of leveraging Pakistan’s natural resources, including minerals, agro-products, gems, and fisheries, to boost exports. He proposed opening new trade missions in regions with significant trade potential to further enhance market access.
Efforts are underway to overcome political and logistical obstacles that have historically hampered trade with Afghanistan and the CARs. Pakistan is strategically positioned to serve as a regional trade hub, connecting the landlocked CARs with international markets.
Recent developments include increased investment talks and economic exchanges with Central Asian nations, reflecting Pakistan’s goal to strengthen its trade relationships in the region. Despite Afghanistan’s role as a transit route and trade partner, strained political relations have complicated formal trade processes.
One major challenge is the CARs’ landlocked geography, which has limited Pakistan’s logistical focus in the past. Trade routes often involve complex arrangements through Afghanistan, with restrictions and high transportation costs affecting the flow of goods.
Pakistan’s initiative to enhance its role in Central Asian markets aligns with its broader strategy to become a key player in regional trade and transit.
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