PAKISTAN aims to boost its trade with Africa more than two-fold by 2025, and the country is also looking at pos sibilities of reaching free trade agreements with the Continent, an advisor said on Thursday. Speaking at Pakistan-Africa Trade Development Conference held in Kenyan capital Nairobi Abdul Razak Dawood, Adviser to Prime Minister on Commerce, Industries and Investment said Pakistan is open to discuss all proposals from African nations “at bilateral and multilateral level”.
The holding of the trade development conference was a step in the right direction as it is in line with the stated objective of the Government to diversify trade and reach out to more markets in the globe. There are bright prospects for increasing trade and commercial ties with African countries as geographic distances are no more as relevant as they were before because of rapid development of the communication sector. However, it is regrettable that despite repeated claims made by successive Governments to enhance trade with Africa, the ground situation is not so good. Pakistan’s trade with Africa has remained stagnant at $3 billion/year from 2012-13 to 2016-17, which has increased to $4.6 billion in 2018-19. Pakistan’s share in total trade of African countries is 0.4 per cent. African continent hosting more than 1.2 billion population and with a $500 billion import bill is a lucrative market. There are, of course, tariff and non-tariff barriers on both sides that need to be pin-pointed and removed through aggressive trade diplomacy and we hope the Advisor, having a rich background of trade and commerce, has the capacity and vision to do that.
A ‘Look Africa’ policy has been prepared that should be implemented in letter and spirit but tangible progress can only be made if targets are assigned to Pakistan Missions in African countries and their realization ensured in a time-bound manner. Pakistan can supply rice, engineering goods, electrical appliances, textiles, apparel, pharmaceuticals, sports goods, surgical instruments, cutlery, furniture and many more products to African countries while the country can be a good market for supply by the African exporters. A study recently conducted also surmised that Pakistan also has a leading defence production industry that is a new market for many African countries willing to buy JF-17 Thunder planes and Mashaq trainer planes, armoured vehicles, small arms and drones, especially in the context of recently ratified African Continent Free Trade Agreement (ACFTA) by 44 African countries. Many Pakistani entrepreneurs have businesses in some African countries especially Kenya and possibility of initiating joint ventures in Pakistan may also be explored. Pakistan always championed the causes of African people and, therefore, enjoys a lot of goodwill there. What we need is transformation of this goodwill into concrete projects and programmes for boosting trade and investment relations for mutual good. Africa has so far not received the priority it deserved and as a consequence our neighbouring countries have captured greater share of that market. It is time we make genuine efforts to improve the situation by way of product diversification, value-addition, inking of more trade agreements and removal of different barriers. The Government also needs to review its overall approach to the trade and economy as there can’t be significant increase in trade if we do not increase productivity and encourage industrialization.
Trade with Africa
