Exploring SCO Exports from Pakistan: Unlocking Potential in Trade
The upcoming Shanghai Cooperation Organization (SCO) Head of Government meeting in Islamabad on October 15-16, 2024, presents a pivotal moment for enhancing international trade relationships among member states. Established in 2001, the SCO brings together key regional players, including China, Russia, India, and several Central Asian countries, covering around 80% of Eurasia. This diverse network offers significant opportunities for fostering trade growth and addressing existing challenges in import and export dynamics.
Pakistan’s Trade Deficit with China
Pakistan’s exports to the SCO countries, especially China, experienced a significant growth in FY24. Pakistan’s exports to China rose 33.68pc to $2.707bn in FY24 from $2.025bn in FY23. Contrary to this, imports surged 39.14pc to $14.779bn in FY24 from $10.621bn over the corresponding period of last year. This shows an increase in trade deficit with maximum countries in FY24. One contributing factor is the free trade agreement between China and ASEAN countries, which reduced 93% of tariff lines to zero, making it harder for Pakistan to compete. To narrow this gap, negotiating preferential tariffs for Pakistan, especially in vital sectors like textiles and clothing, is crucial.
Untapped Potential with Russia
The imports from Russia swelled by 36.58pc to $1.011bn in FY24 from $740.18m in FY23. Contrary to this, exports to Russia fell by 10.89pc to $78.91m in FY24 compared to $88.56m in the preceding year. Yet research indicates a remarkable export potential of $2.8 billion, particularly in textiles, agricultural products, and manufactured goods. By improving freight forwarding capabilities and building stronger ties with international freight partners, Pakistan can tap into this potential and reverse the downward trend.
The Role of Freight Forwarding in Trade Success
Efficient freight forwarding and logistics are vital for successful import and export operations. Enhancing international trade relationships requires Pakistan to modernize its logistics infrastructure and work closely with trusted international freight partners. Reliable freight forwarding services can help reduce costs, ensure timely deliveries, and improve Pakistan’s competitiveness across SCO member states.
With strategic planning and leveraging the SCO framework, Pakistan can address trade barriers, boost its export figures, and strengthen its economic ties within this expansive regional network.
Source : Dawn
