PAKISTAN’S TRADE-FLOW WITH ASEAN REGION: IT’S OPPORTUNITIES AND RECENT

CAUSES.
Furqan Ali | Hafiz Talha Basit | Zainab Roohullah | Haris Abdullah

School of Economics
Quaid-I-Azam University Islamabad

Under Supervision of: MR. UMAR BHATTI

Table of Contents
Introduction: ................................................................................................................................................. 3
Methodology................................................................................................................................................. 5
Pakistan and ASEAN at a Glance ................................................................................................................... 5
ASEAN Total Trade with Different Countries ........................................................................................ 6
Pakistan’s Regulatory Framework and Stakeholder Analysis ....................................................................... 7
Pakistan's New Trade Policy and it's Analysis ........................................................................................... 7
Pakistan’s Opportunities in ASEAN Region ................................................................................................. 10
MALAYSIA............................................................................................................................................ 10
THAILAND ............................................................................................................................................ 14
VIETNAM ............................................................................................................................................. 19
CAMBODIA .......................................................................................................................................... 24
LAOS .................................................................................................................................................... 28
Textiles Sector ......................................................................................................................................... 31
INDONESIA .......................................................................................................................................... 35
SINGAPORE ......................................................................................................................................... 37
BRUNEI ................................................................................................................................................ 39
PHILIPPINES ......................................................................................................................................... 40
MYANMAR .......................................................................................................................................... 41
Non-Tariff Measures ................................................................................................................................... 43
Strategies .................................................................................................................................................... 47
Introduction:
“BOTH PARTIES BENEFIT FROM TRADE EVEN WHEN THERE ARE GROSS INEQUALITIES OF SKILLS AND
PRODUCTIVITY.”

Pakistan has been aggressively pursuing an open gate economic policy over the past decades. It was the
first country in South Asia that adopted a liberal economic policy by deregulating and lessening
government control, encouraging the private sector, and privatizing state’s assets and liabilities. Rising
trends in globalization and new realities that are emerging on the international horizon are also pushing
Pakistan to reassert its position in East Asia and Oceania and chase a proactive policy toward these
regions.

To diversify the market of goods and services between Pakistan and ASEAN, the aim of this project is to
develop an analysis-based strategy to increase and diversify trade with the Association Of Southeast Asian
Nations (ASEAN) that includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines,
Singapore, Thailand, and Vietnam.

In this study we have investigated and highlighted the opportunities for Pakistan’s economy from the free
trade agreement among Pakistan and ASEAN. FTA with ASEAN is a real potential from which Pakistan can
get advantage in various areas to make cooperation such as trade and industry, environment, investment,
science and technology, narcotics control, information technology, agriculture, education, tourism and
human resource development. Pakistan and ASEAN countries share familiar aspirations for peace,
development and prosperity of the region: therefore, it will be great if both parties can cooperate on a
large scale to benefit from each other.

Pakistan was accorded the status of sectoral dialogue partner of ASEAN Ministerial Meeting on 23 July
1993. The inaugural meeting of ASEAN-Pakistan Joint Sectoral Dialogue Relations was convened on 5-7
November 1997 in Islamabad to launch the partnership. Pakistan signed a PTA (Preferential Trade
Agreement) with Indonesia in July 2013. Bilateral trade rose dramatically from approximately US$1.1B in
2013 to US$2.2B in 2014. With a free trade agreement, Indonesia will also have more comfortable access
to Central Asian trade markets, Pakistan will also have an advantage as well. Malaysia and Pakistan FTA
negotiation launched in April 2005 and FTA took effect in January 2008 which aim is to promote market
opportunity for goods and services, investment and enhance tariff reduction on maximum products.

ASEAN is a large potential market with the combined population of over 640 million people, it is the
3rd largest market in the world in terms of population, accounting for approximately 8.6% of the world
population. In 2018, the combined GDP of ASEAN was USD 2.96 trillion now over 3 trillion, and it is
collectively ranked as the 5th largest economy in the world. ASEAN and Pakistan have great potential for
cooperation in various sectors. Pakistan’s total bilateral trade with ASEAN is over US$7 Billion while the
trade between Indonesia-Pakistan reached up toUS$2.3 billion in 2020. With almost 1 billion people of
ASEAN combined with Pakistan itself. It suggests that there is huge scope for Pakistan to scale up its
economic engagement with ASEAN through its member-states. ASEAN member countries continue to
support close friendly ties with Pakistan as a Sectoral Dialogue Partner and an active member of ASEAN
Regional Forum (ARF).

Pakistan has the largest comparative advantage over ASEAN in chapters 3, 8, 41 , 61, 62, 63 at HS 2 digit
product level data, with Malaysia, and Philippines, Pakistan’s trade complementarity stronger than
Indonesia, Singapore, Thailand, and Vietnam. There is huge trade potential that exists Pakistan and ASEAN
member countries

a. Pakistan Trade Comparison with Other Countries of South Asia.

Pakistan’s export trade is relatively lowest in comparison with other South Asian countries viz, India,
Bangladesh etc. Whereas India is exporting the huge trade value of 300 trillion dollars in 2019 throughout
the world.

b. Pakistan’s trade performance (2004-2019)

Methodology
To evaluate Pakistan-ASEAN trade performances (merchandise imports and exports), data from recent
years have been used to analyze, ASEAN-Pakistan trade. The trade data employed in this study is at HS-2-
digit level for the estimation of overall trade performances under concession-wise multiple tracks offered
under the FTA and without FTA, the top ranked products from the earners and loser’s end, and calculation
of Pakistan’s export competitiveness with ASEAN. The major data source used for current analysis is from
international trade center and UN COMTRADE statistics along with certain other additional commerce
and trade data sources.

Pakistan and ASEAN at a Glance

3.5
Pakistan's Trade Flow (2003-2021)
Millions
$1000 USD

3
2.5
2
1.5
1
0.5
0
Import

Import

Import

Import

Import

Import

Import

Import

Import
Import
Export

Export

Export

Export

Export

Export

Export

Export

Export

Export

Brunei Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines Singapore Thailand Vietnam
Countries

● The above-mentioned chart shows Pakistan's trade flow within ASEAN region.
 ● Pakistan exports more than 2 billion USD trade value with Indonesia, Malaysia, and Vietnam from
2003 to 2021.

Pakistan’s Trade by Product line with ASEAN region

Pakistan's: Import & Export

4
Millions

3.5

2.5
x1000 USD

2 Export
Import
1.5

0.5

0
2 3 8 10 17 22 25 30 39 41 42 52 55 62 63 90 95

ASEAN Total Trade with Different Countries

Country Total Trade
Pakistan $7 bn in 2021
India $78 bn in 2021
China $731.9 bn in 2020
Australia $113.7 bn in 2020
South Korea $57.81 bn in 2020
Bangladesh $8 bn in 2020
Sri Lanka $4.48 bn in 2019
Japan $225.9 bn in 2019
New Zealand $15.2 bn in 2017
Pakistan’s Regulatory Framework and Stakeholder Analysis

Pakistan uses the Harmonized System to classify goods. Customs duties are levied on ad-valorem basis.
Pakistan’s overall average applied tariff in 2019 was 10.09 percent. Other than customs duty, the government
charges 17.0 percent sales tax on the duty paid value of a variety of goods produced in or imported into the
country. Customs duty and other charges are payable in Pakistani rupees.

Export subsidies - Pakistan seeks to encourage exports through rebates of import duties, sales taxes, and
income taxes, as well as through subsidized export financing.

The main regulatory body for the trade in Pakistan is the Ministry of Commerce. It is operated under the
government of Islamic Republic of Pakistan.

The Ministry of Commerce imposes many duties/ taxes and restrictions on products.

Customs and import duties:

Customs and certain other duties are collected at the import stage at varying rates classified under the
Harmonized System (HS) Code.

Excise duty:

Federal excise duty (FED) is levied on certain types of manufacturing, import of goods, and rendering of
services at varying rates. Sales tax on services, which is a replacement of FED, under the constitution, is
to be levied and collected by the provinces on services rendered within their jurisdictions.

Pakistan's New Trade Policy and it's Analysis

Pakistan started actively liberalizing its tariff regime in 2005 but the tariff structure is still full of
complexities.

Recently the National Tariff Commission (NTC) of the Ministry of Commerce has formulated a National
Tariff Policy 2019-24 (NTP). The government has acknowledged the significance of imposing import tariffs
for industrial development, export growth and competitiveness.

The main concern was that in previous years, import tariffs were used as a revenue generation but at
present, the focus is on trade promotion and specifically that of exports.

NTP is designed to eliminate inconsistencies in the tariff structure. The purpose is to have a refined tariff
policy which could display trade policy strengths and enhancement of competitiveness through duty-free
access to imported raw material and promotion of investment in efficient industries.

Based on tariff policy reviews, the NTP has adopted measures which include simplification of tariff slabs,
gradual reduction in tariffs on raw material, intermediate goods, and machinery. Moreover, following
vertical consistency, customs duty (CD) and regulatory duties (RD) are statutory regulatory orders (SROs)
that will be lowered in the next five years at a gradual pace.
Based on data from the World Development Indicators database, a gradual reduction in tariff rates is
observed in primary products as well as in manufactured products. This confirms Pakistan is making efforts
to achieve export competitiveness by reduction in tariffs, and the new NTP 2019-24 reflects this as well.
Some interesting points regarding the policy are:

✔ NTP has been committed to trade promotion instead of revenue generation which is expected to
lead towards industrialization and competitiveness. The power to charge tariffs and impose
regulatory duties will be transferred from the customs department to the Commerce Ministry.
However, a regulatory issue may arise here and the new cell may take time to learn the intricacies
of policies.
✔ tariffs on raw materials, intermediate and capital goods will be gradually reduced; the additional
customs duty and regulatory duties will be gradually reduced in the next five years.
✔ The policy shows strong commitment for reductions that will be given through Trade and
Investment policies.
✔ As the import tariff and SROs will be reduced gradually, there should be a reduction of price for
consumers (of imported products) and they should be better off. This can be another feather in
the cap of the government.

Year Regulatory duty Tariff rate Additional Duty Custom duty

levied
2017- Increased to 1500 25% to 17.3% 1% duty levied under Cascaded Tariff
18 tariff lines at HS 8 (vehicles excluded) SRO 1178(1)/2015, Structure (max rate:
Increased 5-10% on which was increased 25%: slabs reduced
import of 570 luxury to 6.2% to 4)
items
Almost 236 Tariff Finance Duty of 50% on
Lines (TLs) of raw Supplementary items including
materials and (Second imported perfumes,
intermediate products Amendment) Act, jewelry, glasses,
were reduced. 2019: tariff beauty products,
concessions to soaps, shaving kits
industries that can and contact lenses
offer import
substitution.
40 TLs incorporated in Duty of 35%
Finance Bill 2019 imposed on
(Supplement-I). imported cigar and
tobacco
2018- 2nd Phase: tariff Lowered tariffs on Duty of 15% on
19 reduction plan raw materials and imported coffee.
approved for 12 intermediate Duty of 20% on
sectors Regulatory goods. imported ice cream.
import duty for 10% tax imposed on
export- oriented imported honey,
industries reduced mushrooms, tin-
[SRO 190(I) 2019] pack vegetables and
fruit, butter, cheese,
eggs, flour, and
corn. 20% tax to be
charged on
imported cocoa
powder, chocolate
paste, sugar,
biscuits, cakes,
almonds, roasted
dry fruit, pastries
and bread.
 Pakistan’s Opportunities in ASEAN Region

MALAYSIA
MALAYSIA Total Export Percentag Mainstream Product Trade Import Mainstream product
Trade Value e line Exported Agreements Value lines Imported
volum in $ Increase in $
e in In Imports
US$ P.A
(Last 25
Years)
PAKISTAN $1.42 $271 6.06% Rice ($59.5M), Free Trade $1.15B Palm
M Onions ($38.9M), Agreement Oil ($534M), Refined
and Crude (FTA) and Petroleum ($86.8M),
Petroleum ($19M) Global System and Other Vegetable
of Trade Residues ($45.4M)
Preferences
(GSTP)
INDIA $13.9B $6.62 10.6% Raw Aluminum ASEAN–India $7.26B Palm
B ($1.33B), Refined Free Trade Oil ($1.64B), Crude
Petroleum ($1.27B), Area (AIFTA) Petroleum ($891M),
and Frozen Bovine and Refined
Meat ($383M) Petroleum ($403M)
CHINA $81.7B $51.5 14.8% Integrated ASEAN–China $30.2B Integrated
B Circuits ($6.18B), Refine Free Trade Circuits ($10.4B), Blank
d Petroleum ($1.41B), Area (ACFTA) Audio Media ($1.93B),
and Broadcasting And and Refined
Equipment ($1.36B) Regional Petroleum ($1.61B)
Comprehensiv
e Economic
Partnership
(RCEP)
BANGLADES $1.4B $207 12.4% Knitted Clothing (105M), FTA, GSTP and $1.2B Mineral Fuels ($403M),
H M Non-Knitted Clothing Preferential Fat and Oils ($215M)
(38M) and Vegetables Tariff and Plastics ($95M)
(10M) Arrangement-
Group of Eight
Developing
Countries
(PTA-D8)
 JAPAN $27.7B $12.1 1.39% Integrated ASEAN-Japan $15.6B Petroleum
B Circuits ($1.94B), Vehicle Comprehensiv Gas ($3.48B), Integrate
Parts ($536M), e Economic d Circuits ($1.17B),
and Semiconductor Partnership and Broadcasting
Devices ($532M) (AJCEP) and Equipment ($537M)
RCEP
AUSTRALIA $10B $3.29 1% (Since Mineral Fuels ($1B), ASEAN- $6.7B Mineral Fuels ($2.6B),
B 2016) Copper and Articles Australia-New Electrical Machinery
($464M) and Ores Zealand Free ($877M) and
($277M) Trade Area Machinery ($711M)
(AANZFTA) and
RCEP
NEW $2.15B $711 3% Concentrated AANZFTA and $1.44B Delivery
ZEALAND M Milk ($221M), RCEP Trucks ($377M),
Kaolin Coated Cars ($212M), and Air
Paper ($40.8M), Conditioners ($103M)
and Malt
Extract ($40.1M)
Data: https://oec.world/

Pakistan Exports to Malaysia was US$382.85 Million during 2021, according to the United Nations
COMTRADE database on international trade, Exports increased significantly compared to last year.

Pakistan has potential in many products from which Pakistan can increase its trade with Malaysia, we have
selected Articles of apparel and clothing accessories, knitted or crocheted HS Code 61.
 Malaysia Imports: Articles of apparel and clothing accessories,
knitted or crocheted
Pakistan 2%
Siri Lanka 2%
Japan 2%
Bangladesh 14%
India 6%

China 74%

Malaysia is currently importing $2.3 Billion worth of Articles of apparel and clothing accessories, knitted
or crocheted which is 74% from China, 14% from Bangladesh, 6% from India, 2% from Japan, 2% from Sri
Lanka and only 2% from Pakistan.

Pakistan is the 8th largest exporter of textile products in Asia. Pakistan has a supply base for almost all
man-made and natural yarns and fabrics, including cotton, rayon and others. This abundance of raw
material is a big advantage for Pakistan due to its beneficial impact on cost and operational lead time.
Textile sector of Pakistan presents the most attractive opportunities for investors in the value-added
segment particularly ‘Apparel and Made-ups’ where there is considerable growth potential. Many
international brands currently operate in Pakistan and work with the local textile mills such as H&M, Levis,
Target, Nike, Adidas, Puma etc.
Pakistan will be able to take advantage of the best possible fiscal incentives in the Special Economic Zones,
skilled and inexpensive labor, easy availability of raw materials, competitive energy tariffs, low freight
costs and preferential access to Malaysian markets.

ANALYSIS

Articles of apparel and clothing accessories, knitted or crocheted, have big trade potential in the
Malaysian Market. While this category falls under the MPCEPA, 5 of the 6 top potential subcategories
have a duty regime of 20%. Comparatively, duties for China and India for these same categories are at 0%
making their product more competitive in the Malaysian market.
 THAILAND

THAILAND Total Export Percentag Mainstream Product line Trade Impor Mainstream product
Trade Value e Exported Agreements t lines Imported
volume in $ Increase Value
in US$ In Imports in $
P.A
(Last 25
Years)
PAKISTAN 1.27B $166M 4.11% Non-fillet Frozen Bilateral Tax $1.1B Vehicle
Fish ($50.3M), Treaty and Parts ($187M),
Molluscs ($30M), Global System Cars ($80.4M), and
and Used Clothing of Trade Polycarboxylic
($19.3M) Preferences Acids ($57.6M)
(GSTP)
INDIA $9.4B $ 5.2B 7% (Since Machinery ($1B), ASEAN–India $4.2B Pearls ($963M),
2016) Plastics ($729M), Free Trade Machinery ($687M)
and Electrical Machinery Area (AIFTA) And Organic
($487M) Chemicals ($300M)
CHINA $81.2B $51B 13.4% Broadcasting ASEAN–China $30.2 Synthetic
Equipment ($3.15B), Free Trade B Rubber ($2.18B),
Computers ($1.49B), Area (ACFTA) Office Machine
and Coated Flat-Rolled And Parts ($2.09B),
Iron ($1.25B) Regional and Other
Comprehensiv Fruits ($2B)
e Economic
Partnership
(RCEP)
BANGLADES $907.6 $50.6 2.8% Knit T-shirts ($7.58M), GSTP $857 Cement ($111M),
H M M Non-Knit Women's M Refined
Suits ($5.58M), and Non- Petroleum ($76.8M),
Knit Men's and Propylene
Suits ($5.29M) Polymers ($32M)
JAPAN $47.7B $24.5B 0.83% Vehicle ASEAN-Japan $23.2 Other Prepared
Parts ($2.03B), Integrate Comprehensiv B Meat ($1.56B),
d Circuits ($1.05B), e Economic Broadcasting
and Hot-Rolled Partnership Equipment ($1B),
Iron ($685M) (AJCEP) and and Cars ($998M)
RCEP
AUSTRALIA $13.2B $2.8B 2.37% Crude ASEAN- $10.4 Delivery
Petroleum ($451M), Australia-New B Trucks ($2.51B),
Zealand Free Cars ($1.37B),
Trade Area and Gold ($1.06B)
 Petroleum Gas ($302M), (AANZFTA) and
and Coal RCEP
Briquettes ($283M)
NEW $2.1B $666M 4.56% Concentrated AANZFTA and $1.44 Delivery
ZEALAND Milk ($221M), RCEP B Trucks ($377M),
Kaolin Coated Cars ($212M),
Paper ($40.8M), and Air
and Malt Conditioners ($103M
Extract ($40.1M) )
Data: https://oec.world/

Pakistan Exports to Thailand were US$251.31 Million during 2021, according to the United Nations
COMTRADE database on international trade, which has increased significantly in recent years.

Pakistan has potential in many products from which Pakistan can increase its trade with Thailand, we have
selected Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical
instruments and apparatus; parts and accessories HS Code 90
 Thailand Imports: Optical, photographic, cinematographic, measuring,
checking, precision, medical or surgical instruments and apparatus; parts
and accessories

China 28%

India 2%

Japan 70%

Thailand is currently importing USD 4.2 Billion worth of Optical, photographic, cinematographic,
measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories
which is 70% from Japan, 28% from China and 2% from India.

Pakistan’s medical device trade balance has historically been negative, with a constrained domestic
manufacturing base, but there are signs that this will change. Increasing rates of surgical procedures has
meant the demand for steel surgical devices and dental instruments has surged in the three months to
October 2020.
Pakistan remains a high-growth medical devices market, driven by a large population, a healthy private
sector and an expanding public healthcare sector, and we expect this growth to remain in double digits in
local currency terms over coming years. We have maintained our forecast CAGR and project that the
market will expand by a 2020-2025 CAGR of 11.8% in local currency terms, which should see the market
reach PKR157B.
In Strategic Policy Framework 2020-25 the Pakistan Government, seeing the potential, has set targets for
exports in many fields including surgical equipment.

ANALYSIS

Pakistan is seeing steady growth in this sector, Pakistan should take advantage of Thailand’s huge market.
Currently Pakistan’s Exports to Thailand is less than 0.1% of Thailand’s total export of Product Code HS 90.
Top potential subcategories have a duty regime of 5% for Pakistan. Comparatively, duties for Japan and
China for these same categories are at 0% and high cost of production for Pakistan makes their product
more competitive in Thailand’s market.
 VIETNAM

VIETNAM Total Export Percentag Mainstream Product Trade Impor Mainstream product
Trade Value e line Exported Agreements t lines Imported
volum in $ Increase Value
e in In Imports in $
US$ P.A
(Last 25
Years)
PAKISTAN $574M $136M 12.7% Cotton ($30M), Plastics Global System $438 Electrical Machinery
($21M) and Raw Hides of Trade M ($227M), Man Made
and Skins ($21M) Preferences Filaments ($47M) and
(GSTP) Coffee, Tea ($37M)

INDIA $10B $ 4.5B -9% (Since Iron and Steel ($1B), ASEAN–India $5.5B Electrical Machinery
2016) Meat and Edibles Free Trade ($3B),
($446M) and Cotton Area (AIFTA) Machinery ($363M)
($335M) And Inorganic
Chemicals ($232M)
CHINA $153B $104B 22% Integrated ASEAN–China $49.4 Telephones ($12.5B),
Circuits ($12B), Free Trade B Integrated
Telephones ($6.8B), Area (ACFTA) Circuits ($8.47B),
and Semiconductor And and Non-Retail Pure
Devices ($3.67B Regional Cotton Yarn ($1.84B)
Comprehensiv
e Economic
Partnership
(RCEP)
BANGLADES $777M $83.8 4.85% Packaged GSTP $693 Broadcasting
H M Medicaments ($23.5M), M Equipment ($103M),
Scrap Iron ($5.62M), Cement ($60.9M),
and Jute Yarn ($5.04M) and Gravel and
Crushed
Stone ($51.4M)
JAPAN $39B $17B 7% (Since Electrical Machinery ASEAN-Japan $22B Electrical Machinery
2016) ($4.5B), Machinery Comprehensiv ($5.6B), Knitted
($2.5B) and Iron, Steel e Economic Clothing ($2B) and
($2.1B) Partnership Non-Knitted Clothing
(AJCEP) and ($1.9B)
RCEP
AUSTRALIA 9B $4.97B 16.5% Coal Briquettes ($1.94B), ASEAN- $4.07 Broadcasting
Iron Ore ($743M), Australia-New B Equipment ($848M),
and Bovine ($373M) Zealand Free Video
Trade Area Displays ($274M),
 (AANZFTA) and and Textile
RCEP Footwear ($196M)
NEW 1.1B $546M 11.1% Concentrated AANZFTA and $582 Broadcasting
ZEALAND Milk ($174M), RCEP M Equipment ($163M),
Butter ($61.6M), Video
and Apples and Displays ($46.1M),
Pears ($59.3M) and Textile
Footwear ($26.8M)
Data: https://oec.world/

Pakistan Exports to Vietnam will be $194.18 Million during 2021, according to the United Nations
COMTRADE database on international trade.

Pakistan has potential in many products from which Pakistan can increase its trade with Vietnam, we have
selected Pharmaceutical Products HS Code 30
 Vietnam Imports: Pharmaceutical Products

Pakistan 4% Bangladesh 3%

Japan 11% China 15%

India 67%

Vietnam is currently importing $5.1 Billion worth of pharmaceutical products which is 67% from India,
15% from China, 11% from Japan, 4% from Pakistan and 3% from Bangladesh. Pharmaceutical products
are currently an underutilized opportunity in Pakistan as there is a trade potential of export of Antibiotics,
Medicaments, Hormones and Penicillin and many other products.

Pakistan’s Pharmaceutical Sector will be valued around $3.2 billion in 2020, doubling from $1.64 billion in
2011. Pharmaceutical exports in 2019 stood at $218 million which is only 0.9 percent of the total exports.
Due to recent expansion in public healthcare, the value of pharmaceuticals manufacturing in Pakistan
could rise to $5 billion by 2024-25.
Pakistan has seen steady growth in the production of pharmaceutical products, there is a lot of room for
growth, especially in value added pharmaceutical products. Vietnam’s market can be a good opportunity
for Pakistan.

In Strategic Policy Framework 2020-25 the Pakistan Government, seeing the potential, has an export
target for the New Strategic Sector in many fields including pharmaceutical products.

ANALYSIS

Pakistan is exporting only $205 million worth of exports of pharmaceutical products to Vietnam, most of
Vietnam’s imports come from India, top potential subcategories have a duty regime of 3% for Pakistan.
Comparatively, duties for India, China and Japan for these same categories are at 3%, 0% and 0%
respectively. Pakistan Should increase its production of pharmaceutical equipment and take advantage of
Vietnam’s Market.
 CAMBODIA
CAMBODIA Total Export Percentag Mainstream Product Trade Import Mainstream product
Trade Value e line Exported Agreements Value lines Imported
volume in $ Increase in $
in US$ In Imports
P.A
(Last 25
Years)
PAKISTAN $33.25 $31.1 18.4% Packaged Bilateral $2.15 Felt or Coated Fabric
M M Medicaments ($10.8M) Investment M Garments ($765k),
, Treaty Knitting
Tanned Equine and Machines ($330k),
Bovine Hides ($6.49M), and Medical
and Tanned Goat Instruments ($245k)
Hides ($2.78M)
INDIA $223M $169M 19.1% Packaged ASEAN–India $54.1 Rubber ($12.8M),
Medicaments ($44.1M) Free Trade M Semiconductor
, Area (AIFTA) Devices ($5.61M),
Frozen Bovine and Palm
Meat ($19.3M), Oil ($2.78M)
and Synthetic Filament
Yarn Woven
Fabric ($6.91M)
CHINA $9.53B $8.07B 22.5% Light Rubberized ASEAN–China $1.46B Tanned
Knitted Fabric ($1.06B), Free Trade Furskins ($155M),
Broadcasting Area (ACFTA) Rice ($147M),
Equipment ($273M), And and Bananas ($120M
and Pile Fabric ($211M) Regional )
Comprehensiv
e Economic
Partnership
(RCEP)
BANGLADESH $20.1M $10.9 23.9% Packaged No Specific $9.23 Light Rubberized
M Medicaments ($5.17M) Trade M Knitted
, Agreement Fabric ($7.81M), Bi-
Other Vegetable Wheel Vehicle
Residues and Parts ($547k),
Waste ($1.8M), and Heavy Mixed
and Heavy Mixed Woven
Woven Cotton ($171k)
Cotton ($1.28M)
 JAPAN $2.17B $514M 7.9% Frozen Bovine ASEAN-Japan $1.63B Non-Knit Women's
Meat ($71.5M), Large Comprehensiv Suits ($223M), Knit
Construction e Economic Sweaters ($145M),
Vehicles ($38.2M), Partnership and Non-Knit Men's
and Bi-Wheel Vehicle (AJCEP) and Suits ($144M)
Parts ($31.6M) RCEP
AUSTRALIA $346M $121M 10.7% Coal ASEAN- $225M Gold ($37.4M),
Briquettes ($58.5M), Australia-New Rice ($24.8M),
Malt ($15.2M), Zealand Free and Felt or Coated
and Delivery Trade Area Fabric
Trucks ($11.1M) (AANZFTA) and Garments ($16.2M)
RCEP
NEW $34.8M $10.4 8.52% Uncoated Kraft AANZFTA and $24.4 Rice ($5.5M), Knit
ZEALAND M Paper ($2.51M), Apples RCEP M Sweaters ($2.12M),
and Pears ($1.08M), and Textile
and Refined Footwear ($1.98M)
Petroleum ($794k)
Data: https://oec.world/

Pakistan Exports to Cambodia were US$26.51 Million during 2021, according to the United Nations
COMTRADE database on international trade, Pakistan Exports to Cambodia have been declining gradually.

Pakistan has potential in many products from which Pakistan can increase its trade with Cambodia, we
have selected Electrical machinery and equipment and parts thereof crocheted HS Code 85.
 Cambodia Imports: Electrical machinery and equipment and parts thereof
India 1% Japan 8%

China 91%

Cambodia is currently importing $4.2 Billion worth of Electrical machinery and equipment and parts
thereof which is 91% from China, 8% from Japan and 1% from India.
Pakistan is exporting $160 Million worth of Electrical machinery and equipment and parts thereof to
countries like Turkey ($92M), Afghanistan ($17.9M), Saudi Arabia ($8.89M), UAE ($4.45M), Oman
($3.78M), Nigeria ($3.67M) etc. There is a lot of potential for growth of this product in Pakistan.

ANALYSIS

Pakistan is seeing steady growth in this sector. Currently Pakistan’s Exports to Cambodia for Product Code
HS 85 is a mere $86,000. Top potential subcategories have a duty regime of 15-35% for Pakistan.
Comparatively, duties for China is 1-3% and for Japan is 10-15% for these same categories. Having a very
low tariff rate China has a huge advantage and makes its product more competitive in Cambodia’s Market.
 LAOS

LAOS Total Export Percentag Mainstream Product Trade Import Mainstream product
Trade Value e line Exported Agreements Value lines Imported
volume in $ Increase in $
in US$ In Imports
P.A
(Last 25
Years)
PAKISTAN $540k $525k 12.3% Packaged Bilateral $14.8k Microphones and
Medicaments ($374k), Investment Headphones ($8.39k)
Unpackaged Treaty ,
Medicaments ($88.1k), Non-Knit Men's
and Light Mixed Suits ($4.91k),
Woven Cotton ($23k) and Video
Displays ($775)
INDIA $29.8M $27.9 19.7% Electric Motor ASEAN–India $1.89 Petroleum
M Parts ($7.26M), Free Trade M Coke ($882k), Wood
Hydraulic Area (AIFTA) Carpentry ($306k),
Turbines ($3.26M), and Unprocessed
and Packaged Synthetic Staple
Medicaments ($2.81M) Fibers ($122k)
CHINA $3.1B $1.42B 14.6% Iron ASEAN–China $1.68B Copper Ore ($308M),
Structures ($100M), Free Trade Rubber ($261M),
Insulated Area (ACFTA) and Refined
Wire ($53.5M), And Copper ($183M)
and Iron Railway Regional
Products ($45M) Comprehensiv
e Economic
Partnership
(RCEP)
BANGLADES $1.35M $1.29 24.4% Leather of Other Asia-Pacific $64k Data Not Available
H M Animals ($456k), Trade
Knitted fabric ($275k) Agreement
and Low Voltage
Protection Equipment
($138k)
JAPAN $269M $142M 6.9% Machinery Having ASEAN-Japan $127M Insulated
Individual Comprehensiv Wire ($15.5M),
Functions ($27.5M), e Economic Leather
Stone Working Partnership Footwear ($13.8M),
Machines ($26.1M), (AJCEP) and and Wood
and Cars ($25.4M) RCEP Charcoal ($13.7M)
 AUSTRALIA $108.6 $17.3 0.62% Liquid ASEAN- $91.3 Gold ($75.2M),
M M Pumps ($4.31M), Australia-New M Broadcasting
Stone Processing Zealand Free Equipment ($3.58M),
Machines ($1.71M), Trade Area and Leather
and Valves ($1.27M) (AANZFTA) and Footwear ($2.18M)
RCEP
NEW ZELAND $3.56M $838k 3.83% Insulated AANZFTA and $2.72 Video Recording
Wire ($15.5M), Leather RCEP M Equipment ($1.02M),
Footwear ($13.8M), Video
and Wood Displays ($403k),
Charcoal ($13.7M) and Broadcasting
Equipment ($391k)
Data: https://oec.world/

Pakistan Exports to Laos was $499k during 2021, according to the United Nations COMTRADE database
on international trade. In 2016 it increased to $1.3 Million but in recent years it has decreased significantly.

Pakistan has potential in many products from which Pakistan can increase its trade with Laos, we have
selected Paper and paperboard; articles of paper pulp, of paper or of paperboard HS Code 48.
 Lao Imports: Paper and paperboard; articles of paper pulp, of
paper or of paperboard
Japan 2%

China 98%

Lao is currently importing $253 Million worth of Paper and paperboard; articles of paper pulp, of paper
or of paperboard which is 98% from China and 2% from Japan.

Pakistan Exports of paper and paperboard, articles of pulp, paper and board was $64.1 Million during
2021, which has decreased substantially from 2017 where its exports were more than $100 Million.
Pakistan is underutilizing its potential for production of paper and paperboard, articles of pulp, paper and
board. Pakistan should increase its production if they want to take advantage of ASEAN’s Market.
ANALYSIS

Pakistan production of paper and paperboard, articles of pulp, paper and board is growing, currently
Pakistan is exporting only $18,000 worth of this products to Laos, most of Laos imports of this product
comes from China, top potential subcategories have a duty regime of 5% for Pakistan. Comparatively,
duties for China for these same categories are at 0% respectively. Pakistan Should increase its production
of paper and paperboard, articles of pulp, paper and board and have to decrease its cost of production if
they want to compete with China in Laos’s Market.

Textiles Sector
Highlights
● Ranked 3rd in the world in terms of yarn production.
● $8.5% Textile contribution to GDP.
● $1.2 trillion Global textiles apparel demand in 2017-18
Pakistan is the 8th largest exporter of textile products in Asia. It is the 4th largest producer and 3rd largest
consumer of cotton.

Pakistan's Export: Cotton

1.2
x1000 (Millions)

0.8

0.6
Export
0.4

0.2

0
Brunei Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines Singapore Thailand Vietnam
52

● Pakistan’s largest cotton exports in ASEAN Region is with Indonesia and Vietnam.
● Exports grew 32% in Calendar year 2021, as a result of enhanced competitiveness
● Exchange rate policy, coupled with competitive power and gas tariffs led to a turn around
● EU GSP + status grants lower tariffs to export from Pakistan
● Upgradation of plants and machinery has significantly enhanced production capacity
● Targeting $20 bn exports in 2022
● A complete value chain albeit fragmented
● Relatively less vertically integrated units. Attractive investment opportunities for investment in
integrated units
● Export focus has been on yarn and fabric; offers substantial upside to capture export markets’
share in value-added products.
 ● Unit costs in Pakistan across the Textile Value Chain (TVC) vis-à-vis China are competitive.
● Unit costs are even more competitive in higher value added products, garments and bed-linen.

a. Opportunities for foreign investors in the Textile Sector

● Pakistan is the 8th largest exporter of textile products in Asia
● It is the 4th largest producer and 3rd largest consumer of cotton.
● It comprises 46% of the total manufacturing sector and provides employment to 40% of the total
labor force.
● 5% of the total textile companies are listed on the stock exchange. There are 423 textile industries
working in the country.
● The industry consists of 11.3 million spindles, 3 million rotors, 400,000 power looms, 18,000
knitting machines and a processing capacity of 5.2 billion square meters.
● It has about 700,000 industrial and domestic stitching machines. There are 21 filament yarn units
with a capacity of 100,000 tons.
● A complete textile value chain exists in the country, unlike many other countries that possess only
the primary base or the finished base.

b. Potentials for Textile industry

Pakistan has a supply base for almost all man-made and natural yarns and fabrics, including cotton, rayon
and others. This abundance of raw material is a big advantage for Pakistan due to its beneficial impact on
cost and operational lead time.

Many international brands currently operate in Pakistan and work with the local textiles mills such as
H&M, Levis, Target, Nike, Adidas, Puma etc.

Textile sector of Pakistan presents the most attractive opportunities for foreign investors in the value-
added segment particularly ‘Apparel and Made-ups’ where there is considerable growth potential.
 INDONESIA
INDONESIA Total Export Percentag Mainstream Product Trade Import Mainstream product
Trade Value e line Exported Agreements Value lines Imported
volum in $ Increase in $
e in In Imports
US$ P.A
(Last 25
Years)
PAKISTAN $2.62B $190M 2.93% Rice ($40.6M), Semi- Preferential $2.43B Palm Oil ($1.62B),
Finished Iron ($40.1M), Trade Coal
and Citrus ($22.7M) Agreement Briquettes ($183M),
(PTA) and and Unprocessed
Global System Artificial Staple
of Trade Fibers ($102M)
Preferences
(GSTP)
INDIA $18.9B $7.91B 4.55% Special Purpose ASEAN–India $11B Coal
Ships ($772M), Semi- Free Trade Briquettes ($3.8B),
Finished Iron ($302M), Area (AIFTA) Palm Oil ($3.05B),
and Frozen Bovine and Stearic
Meat ($272M) Acid ($258M)
CHINA $73.4B $40.8B 13.8% Telephones ($1.95B), ASEAN–China $32.6B Ferroalloys ($4.55B),
Broadcasting Free Trade
Equipment ($1.57B), Area (ACFTA) Coal
and Computers ($1.13B) And Briquettes ($2.67B),
Regional and Palm Oil ($2.47B)
Comprehensiv
e Economic
Partnership
(RCEP)
BANGLADESH $1.76B $75.5 8.63% Knit T- GSTP $1.69B Palm
M shirts ($11.7M), Jute Oil ($697M), Coal
Yarn ($10.9M), Briquettes ($335M),
and Non-Knit Men's and Sulfate Chemical
Suits ($8.63M) Woodpulp ($87.4M)
JAPAN $23.6B $9.24B 0.18% Vehicle ASEAN-Japan $14.4B Coal
Parts ($763M), Hot- Comprehensiv Briquettes ($1.85B),
Rolled Iron ($264M), e Economic Precious Metal
and Cars ($220M) Partnership Scraps ($963M),
(AJCEP) and and Petroleum
RCEP Gas ($836M))
 AUSTRALIA $6.94B $3.88B 2.89% Coal ASEAN- $3.06B Gold ($371M),
Briquettes ($469M), Australia-New Refined
Iron Ore ($415M), Zealand Free Petroleum ($223M),
and Bovine ($381M) Trade Area and Shaped
(AANZFTA) and Wood ($137M)
RCEP
NEW $1.29B $708M 4.82% Concentrated AANZFTA and $585M Other Vegetable
ZEALAND Milk ($242M), RCEP Residues ($188M),
Butter ($59.2M), Coal
and Cheese ($50.8M) Briquettes ($51.6M),
and Shaped
Wood ($25.4M)
Data: https://oec.world/

Indonesia Imports: Cotton 05

China
14%

Pakistan
India
50%
26%

Japan
8%
Iran
2%

The above-mentioned pie chart shows the Cotton (HS 2-digit=52) import scenario of Indonesia in which
Pakistan has a comparative advantage and is the leading Indonesian cotton market, even though top
potential subcategories have a duty regime of 10% for Pakistan. Comparatively, duties for India, China and
Japan for these same categories are at 5%, 0% and 0% respectively

However, Pakistan still has more potential to capture similar dynamic comparative advantages in other
ASEAN region countries.
 SINGAPORE

SINGAPORE Total Export Percentag Mainstream Product Trade Import Mainstream product
Trade Value e line Exported Agreements Value lines Imported
volume in $ Increase in $
in US$ In Imports
P.A
(Last 25
Years)
PAKISTAN $646M $62M 6% (Since Mineral Fuels ($17.7M), Bilateral Tax $584M Mineral Fuels ($239M),
2016) Vegetables ($6M) and Treaty, Essential Oils ($52M)
Knitted Clothing ($6M) Bilateral and Plastics ($50M)
Investment
Treaty and
Global System
of Trade
Preferences
(GSTP)
INDIA $20.6B $8.3B 2% (Since Mineral Fuels ($3.98B), ASEAN–India $12.3B Electrical Machinery
2016) Ships Boats ($1.1B) and Free Trade ($2.4B), Machinery
Machinery ($686M) Area (AIFTA) ($2.2B) and Ships,
boats ($1.1B)
CHINA $97B $54B 11.1% Integrated ASEAN–China $42.9B Integrated
Circuits ($5.55B), Refine Free Trade Circuits ($10.6B),
d Petroleum ($4.88B), Area (ACFTA) Ethylene
and Broadcasting And Polymers ($2.25B),
Equipment ($3.97B) Regional and Machinery Having
Comprehensiv Individual
e Economic Functions ($1.86B)
Partnership
(RCEP)
BANGLADESH $2.45B $161 4.22% Non-Knit Men's GSTP $2.29B Refined
M Suits ($30.3M), Petroleum ($856M),
Non-Knit Women's Synthetic Coloring
Suits ($22.1M), Matter ($104M),
and Refined and Computers ($77.2
Petroleum ($18.4M) M)
JAPAN $26.8B $15.8 1.48% Gold ($1.62B), ASEAN-Japan $11B Packaged
B Integrated Comprehensiv Medicaments ($1.13B),
Circuits ($1.49B), e Economic Gas Turbines ($1.02B),
and Passenger and Partnership and Integrated
Cargo Ships ($1.41B) (AJCEP) and Circuits ($999M)
RCEP
 AUSTRALIA $13.36 $7.1B 4.04% Iron Ore ($2.13B), ASEAN- $6.26B Refined
B Gold ($988M), Australia-New Petroleum ($2.82B),
and Petroleum Zealand Free Other Edible
Gas ($659M) Trade Area Preparations ($379M),
(AANZFTA) and and Crude
RCEP Petroleum ($333M)
NEW $2.02B $789 5.42% Concentrated AANZFTA and $1.24B Refined
ZEALAND M Milk ($167M), RCEP Petroleum ($492M),
Gas Turbines ($142M), Spark-Ignition
and Bovine, Sheep, and Engines ($122M),
Goat Fat ($59.1M) and Gas
Turbines ($107M)
Data: https://oec.world/

Singapore mainly exports mechanical appliances, mineral fuels, and electrical machinery to Pakistan
against imports of apparel, textile articles, mineral fuels, and pharmaceutical products. Pakistan exports
to Singapore various products, these include medical instruments, semi-milled or wholly milled rice,
Portland cement, and T-shirts.
 BRUNEI

BRUNEI Total Export Percentag Mainstream Product Trade Import Mainstream product
Trade Value e line Exported Agreements Value lines Imported
volum in $ Increase in $
e in In Imports
US$ P.A
(Last 25
Years)
PAKISTAN $21M $1.36 4.23% Onions ($428k), Non- No Specific $19.6 Refined
M Knit Trade M Petroleum ($19.5M),
Activewear ($136k), Agreement Other Organo-Inorganic
and Potatoes ($105k) Compounds ($57.5k),
and Acyclic
Alcohols ($1.49k)
INDIA $482M $ 60M -2% (Since Vehicles ($38M), ASEAN–India $422M Mineral Fuels ($420M)
2016) Machinery ($3.8M) Free Trade and Organic Chemicals
and Meat ($3M) Area (AIFTA) ($1M)
CHINA $1.77B $542M 11.7% Refined ASEAN–China $1.23B Cyclic
Petroleum ($72.2M), Free Trade Hydrocarbons ($799M),
Iron Pipe Area (ACFTA)
Fittings ($32.5M), And Petroleum
and Iron Regional Gas ($165M),
Pipes ($24.2M) Comprehensiv and Refined
e Economic Petroleum ($82.7M)
Partnership
(RCEP)
BANGLADES $32.8 $2.81 19.9% Air Pumps ($1.51M), No Specific $30M Petroleum
H M M Baked Goods ($169k), Trade Gas ($29.9M),
and Flavored Agreement Valves ($79.8k),
Water ($163k)) and Other Cloth
Articles ($23.2k)
JAPAN $1.73B $131M 0.43% Cars ($33.9M), Refine ASEAN-Japan $1.6B Petroleum
d Petroleum ($15.1M), Comprehensiv Gas ($1.47B),
and Steam e Economic Refined
Turbines ($14.4M) Partnership Petroleum ($42.6M),
(AJCEP) and and Crude
RCEP Petroleum ($39.6M)
AUSTRALIA $1.1B $85M 24.4% Mineral Fuels ($49M), ASEAN- $1.01B Mineral Fuels ($1B) and
(Since Live Animal ($8M) and Australia-New Fish ($2.8M)
2016) Dairy Produce ($4.8B) Zealand Free
Trade Area
 (AANZFTA) and
RCEP
NEW $42.4 $3.4M 0% (Since Dairy Produce ($2M), AANZFTA and $39M Mineral Fuels ($39M)
ZEALAND M 2016) Fish ($367k) and RCEP
Vegetables ($213k)
Data: https://oec.world/

PHILIPPINES
Total Export Percentag Mainstream Product Trade Import Mainstream product
PHILIPPINES Trade Value e line Exported Agreements Value lines Imported
volum in $ Increase in $
e in In Imports
US$ P.A
(Last 25
Years)
PAKISTAN $185M $125M 4.05% Alcohol > 80% Bilateral Tax $59.7 Cars ($9.93M), Scra
ABV ($31.6M), Treaty, M p Iron ($7.72M),
Packaged Bilateral and Other Processed
Medicaments ($23.2M) Investment Fruits and
, and Citrus ($19.8M) Treaty and Nuts ($4.97M))
Global System
of Trade
Preferences
(GSTP)
INDIA $2.19B $1.56B 10% Packaged ASEAN–India $631M Refined
Medicaments ($228M), Free Trade Copper ($82.7M),
Area (AIFTA) Gold ($78.4M),
Motorcycles ($116M), and Office Machine
and Semi-Finished Parts ($67.1M)
Iron ($103M)
CHINA $47.4B $34.5B 15.1% Refined ASEAN–China $12.9B Integrated
Petroleum ($2.4B), Free Trade Circuits ($4.33B),
Integrated Area (ACFTA) Office Machine
Circuits ($1.72B), And Parts ($1.34B), and
and Broadcasting Regional Nickel Ore ($1.3B)
Equipment ($1.66B) Comprehensiv
e Economic
 Partnership
(RCEP)
BANGLADESH $74M $56.1 8.05% Packaged GSTP $17.8 Malt
M Medicaments ($11.4M) M Extract ($5.02M),
, Scrap Iron ($3.8M),
Milk ($6M), and Knit T- and Animal Meal
shirts ($5.92M) and Pellets ($2.43M)
JAPAN $18.5B $8.21B 0.67% Integrated ASEAN-Japan $10.3B Insulated
Circuits ($830M), Comprehensiv Wire ($1.09B),
Delivery e Economic Bananas ($749M),
Trucks ($293M), Partnership and Wood
and Buses ($269M) (AJCEP) and Carpentry ($627M)
RCEP
AUSTRALIA $1.67B $1.23B 2.27% Precious Metal ASEAN- $439M Office Machine
Ore ($242M), Australia-New Parts ($54.6M),
Wheat ($168M), Zealand Free Electric
and Copper Trade Area Batteries ($47.4M),
Ore ($136M) (AANZFTA) and and Electrical
RCEP Transformers
($25.3M))
NEW ZEALAND $563M $479M 5.11% Butter ($124M), AANZFTA and $83.8 Bananas ($8.25M),
Concentrated RCEP M Office Machine
Milk ($117M), Parts ($5.47M),
and Cheese ($51.9M) and Tropical
Fruits ($5.31M)
Data: https://oec.world/

MYANMAR

MYANMAR Total Export Percentag Mainstream Product Trade Import Mainstream product
Trade Value e line Exported Agreements Value lines Imported
volume in $ Increase in $
in US$ In Imports
P.A
(Last 25
Years)
PAKISTAN $68.7M $23.7 12.3% Packaged Global System $45M Dried
M Medicaments ($10.7M), of Trade Legumes ($41M),
Preferences Rubber ($1.02M),
(GSTP) and Vegetable
 Industrial Fatty Acids, Tanning
Oils and Extracts ($854k)
Alcohols ($4.91M),
and Unpackaged
Medicaments ($1.53M)
INDIA $1.41B $837M -7% (Since Pharmaceutical ASEAN–India $575M Vegetables ($388M),
2016) Products ($232M), Free Trade Wood Articles ($63M)
Vehicles ($69M) and Area (AIFTA) and Cereals ($40M)
Electrical Machinery
($57M)
CHINA $16.77 $11.4B 12.4% Broadcasting ASEAN–China $5.37B Petroleum
B Equipment ($637M), Free Trade Gas ($1.31B), Refined
Heavy Synthetic Cotton Area (ACFTA) Copper ($669M),
Fabrics ($563M), And and Rice ($508M)
and Light Rubberized Regional
Knitted Fabric ($436M) Comprehensiv
e Economic
Partnership
(RCEP)
BANGLADES $113M $48.4 10.5% Packaged GSTP $64.1 Dried
H M Medicaments ($19M), M Legumes ($21.9M),
Iron Pipes ($6.23M), Onions ($12.8M),
and Industrial Fatty and Non-fillet Fresh
Acids, Oils and Fish ($7.52M)
Alcohols ($5.18M)
JAPAN $2.12B $673M 6.03% Delivery ASEAN-Japan $1.45B Non-Knit Men's
Trucks ($46.1M), Comprehensiv Suits ($176M), Non-
Cars ($39.3M), and Hot- e Economic Knit Men's
Rolled Iron ($38.5M) Partnership Coats ($114M),
(AJCEP) and and Non-Knit
RCEP Women's
Suits ($103M)
AUSTRALIA $190M $143M 11.7% Wheat ($63.5M), Coal ASEAN- $46.9 Trunks and
Briquettes ($29.6M), Australia-New M Cases ($7.43M),
and Other Coloring Zealand Free Crustaceans ($4.27M)
Matter ($7.93M) Trade Area , and Dried
(AANZFTA) and Legumes ($3.92M)
RCEP
NEW $47.2M $39.1 20.8% Myanmar are AANZFTA and $8.1M Dried
ZEALAND M Concentrated RCEP Legumes ($961k),
Milk ($28.9M), Trunks and
Butter ($2.48M), Cases ($790k),
and Cheese ($1.63M) and Non-Knit Men's
Shirts ($621k)
Data: https://oec.world/
Non-Tariff Measures
Non-Tariff Measures (NTMs) OR Non-tariff Barriers (NTBs) are generally defined as measures other than
tariffs, which have an effect on trade. The concept of tariff commonly refers to “ordinary customs duties”,
which under the ASEAN Trade in Goods Agreement (ATIGA) are “any customs or import duty and a charge
of any kind imposed in connection with the importation of a good”. Therefore, NTMs comprise all
measures other than “ordinary customs duties” and “other duties and charges” having an effect on trade.

The concept of NTMs is very broad, and includes a number of different measures, ranging from
quantitative restrictions of all kinds, technical regulations, standards, SPS measures, customs rules, etc.
All of them share the same characteristic of affecting trade.

To ensure greater transparency with respect to NTMs adopted by ASEAN Member States, the ATIGA
requires each ASEAN Member State to:

• Establish a database on NTMs applied in its territory; and

• Notify amendments to existing measures or the adoption of new measures.
• The ATIGA also requires that the information on NTMs be included in the ASEAN Trade Repository
(ATR).

Taking into account the specificity of the ASEAN framework, the ASEAN classification of NTMs for purposes
of the transparency requirements mandated under the ATIGA includes the following broad NTM
categories:

• Labeling Requirements;
• Technical barriers to trade (TBT);
• Licensing or Permit Requirements;
• Contingent trade protective measures;
• Non-automatic licensing, quotas, prohibitions, and quantity control measures other than for SPS
or TBT reasons;
• Price-control measures including additional taxes and charges;
• Testing measures;
• Measures affecting competition;
• Product Registration Requirements;
• Subsidies (excluding export subsidies);
• Government procurement restrictions;
• Intellectual property; and
• Export-related measures. Etc.

Some of these NTMs are discussed below

1. Labeling Requirements

Almost all ASEAN countries have imposed strict labeling requirements as a non-tariff measure in common,
making it difficult for Pakistan to access the respective markets. These extensive labeling requirements
include:

• Prescribed Name and Description of the product should be clearly visible on the product.
• Legibility Requirements
 • Recall Information
• Ingredients/Components Listing
• Date Marking
• Directions for use
• Country of Origin etc.

Above mentioned are some of the labeling requirements observed in the ASEAN countries. In our view, if
Pakistan makes itself proficient and succeeds in labeling its export goods up to the mark as per the
international standards and requirements of ASEAN; this can result in an increase in our trade as many of
our goods do not find the way to ASEAN markets because of poor labeling standards.

Labeling Requirements (B310)

Sr NTM
N Reporter Frequency NTM Coverage NTM Affected NTM affected
o Name Ratio Ratio Product Trade
1 Philippines 32.98 35.28 1641 73,022,232.54
2 Malaysia 28.05 48.88 1427 92,147,472.58
3 Brunei 16.99 16.13 735 588,789.80
4 Vietnam 15.24 8.12 758 13,446,893.71
5 Singapore 14.9 31.04 720 97,800,044.31
6 Cambodia 13.1 11.3 522 1,314,069.31
7 Myanmar 13.05 15.92 570 2,734,449.66
8 Thailand 7.84 8.66 399 18,487,908.59

2. License Requirements

We observe the strong license requirements, especially import/export licensing in almost all the ASEAN
countries. Simultaneously getting the license requires very thorough checks and scrutinizing and
extensively detailed documentation. Different bureaucratic complexities and complications also exist in
different ASEAN countries for getting the trade license as well as some policy issues.

These problems impose a sort of blockade for Pakistan to trade. Such problems of complex and difficult
'License Requirements' can be minimized by:

• Getting our trade items up to the mark, so that they meet the due requirements to avail the
license with ease.
• Negotiations on the terms and conditions of getting the License for traders at government and
state level to make things easier.

Licensing or Permit Requirements to Export (P130)

Sr NTM
N Reporter Frequency NTM Coverage NTM affected NTM affected
o Name Ratio Ratio product - Count Trade
1 Philippines 38.25 70.55 1757 111,831,842.82
2 Myanmar 22.28 25.55 313 3,405,301.96
3 Malaysia 21.11 14.56 1018 30,797,612.30
 4 Indonesia 4.09 20.04 189 32,529,671.50

3. Technical Barriers to Trade Requirements

Technical barriers to trade (TBT) are measures that include technical regulations and procedures for the
assessment of conformity with technical regulations and standards, except for measures that qualify as
Sanitary and phytosanitary (SPS) measures. The Technical Barriers to Trade (TBT) Agreement aims to
ensure that technical regulations, standards, and conformity assessment procedures are non-
discriminatory and do not create unnecessary obstacles to trade.

TBT measures include:

• Prohibitions/restrictions of imports for objectives set out in the TBT Agreement;

• Tolerance limits for residues and restricted use of substances;
• Labeling, marking, and packaging requirements;
• Production or post-production requirements;
• Product identity requirement;
• Product-quality or -performance requirement;
• Conformity assessment related to TBT;

These TBT measures offer great resistance to Pakistani products being traded in the group of countries
under discussion i.e., ASEAN. So TBTs should be dealt seriously by Quality Management of our goods,
technical adequacy and accuracy and in addition some relaxations, if possible, should be secured for our
manufacturers and traders by negotiations with ASEAN countries.

Authorization Requirement for TBT Reasons (B140)

Sr NTM
No Reporter Frequency NTM Coverage NTM affected NTM affected
. Name Ratio Ratio product - Count Trade
1 Cambodia 29.1 16.19 1160 1,883,370.20
2 Malaysia 28.19 49.35 1434 93,046,345
3 Indonesia 20.14 38.64 1000 60,647,319.74
4 Philippines 16.42 32.49 817 67,236,586.40
5 Singapore 9.83 32.6 475 102,700,503.11
6 Brunei 9.73 19.34 421 706,207.37
7 Thailand 6.07 11.97 309 25,535,081.28

4. Testing Requirements

Testing requirements are concerned with conformity assessment requirements for products to be tested
against a given regulation. If any of the products doesn't withstand the tests and assessments, it is
rejected straight away and cannot find its way to the trade markets. Testing requirements are very strict
in ASEAN countries in particular causing a halt in our trade.
Serious measures must be taken at all concerned levels to meet the testing requirements of ASEAN.
 Testing requirement (B820)
Sr NTM
No Reporter Frequency NTM Coverage NTM affected NTM affected
. Name Ratio Ratio product - Count Trade
1 Philippines 19.88 48.92 989 101,231,231.08
2 Vietnam 17.67 13.52 879 22,380,069.68
3 Singapore 3.15 27.9 152 87,904,845.23
4 Malaysia 2.32 14.48 118 27,307,007.04
5 Myanmar 1.33 14.95 58 2,568,672.55

5. Product Registration Requirements

Product registration requirements are applied by an importing country and concern measures such as
requirements and guidelines for the registration of products used in the manufacture of food products.
The Government of Pakistan should exert maximum efforts to get the Pakistani products registered in
the ASEAN countries so that the share of our trade in ASEAN could be increased.

Registration requirement for importers for TBT reasons (B150)

Sr NTM
No Reporter Frequency NTM Coverage NTM affected NTM affected
. Name Ratio Ratio product - Count Trade
1 Cambodia 54.04 74.66 2154 8,684,939.79
2 Indonesia 33.98 49.94 1687 78,372,931.52
3 Philippines 32.08 49.58 1596 102,601,851.73
4 Thailand 1.83 7.54 93 16,080,274.33

6. Export Technical Measures

Export technical measures are export regulations that refer to technical specification of products and
conformity assessment systems thereof. They include:

• Inspection requirements;
• Certifications required by the exporting country; and
• Export technical measures not elsewhere specified.

Export Technical Measures (P690)

Sr NTM
No Reporter Frequency NTM Coverage NTM affected NTM affected
. Name Ratio Ratio product - Count Trade
1 Cambodia 65.61 86.53 1078 7,984,338.54
2 Myanmar 28.26 69.78 397 9,300,513.39
3 Vietnam 14.14 42.24 629 70,252,597.71
4 Indonesia 9.79 34.8 452 56,485,370.23
Analysis

The above discussion on some important Non-Tariff Barriers of ASEAN countries clearly suggests that Non-
Tariff Barriers are equally important to be considered as the Tariff measures in trade. So, if we want to
increase our trade in ASEAN to earn more revenues, we should make Non-Tariff Barriers our priority.

Strategies
1- Pakistan is focusing on individual country while trying to make FTAs with ASEAN countries, this
process has been very slow, Pakistan has only managed to make FTA with Malaysia out of 10
countries of ASEAN and have to pay high tariff while trading with other 9 countries. Instead on
focusing on an individual country, Pakistan should focus on ASEAN region as a whole and try to
make single agreement with all 10 ASEAN countries like China, India and Japan did in the form of
ASEAN–China Free Trade Area, ASEAN–India Free Trade Area and ASEAN-Japan
Comprehensive Economic Partnership respectively.
2- CPEC is a very big opportunity for Pakistan to attract ASEAN countries for trade. Like Australia and
New Zealand made a single agreement with ASEAN (ASEAN-Australia-New Zealand Free Trade
Area), similarly Pakistan should involve China in their agreements with ASEAN. If Pakistan can
make FTA with ASEAN then CPEC could become even bigger game changer for us.
3- Regional Comprehensive Economic Partnership (RCEP) is world’s largest free trade pact involving
ASEAN and some of world’s most advanced economies like Japan, China and Australia, one of the
key features of the RCEP is the high degree of diversity among member countries. Recently India
decided to opt out of RCEP, even though Pakistan is not as big as economy as India but Pakistan
should shape its foreign policy in such a way that joining RCEP should be one of its top priority.
4- Pakistan is facing real challenges from Bangladesh and India. They produce better products at
lower cost. Pakistan can tackle these challenges by introducing some cost and quality
management at industrial level. Pakistan should produce finished goods from cotton, as it has
ability to use excessive production of cotton and other raw materials. Producing finished goods in
local market, at better quality and low cost can capture the markets in ASEAN region.