Ayesha Saba

Experts have emphasised the need for Pakistan and Tajikistan to launch joint ventures in export-oriented sectors to bolster trade and economic cooperation. They stress that these collaborative efforts can drive export-oriented production, leveraging the strengths and resources of both nations. Recently, Pakistan and Tajikistan signed a series of memorandums of understanding and agreements, signifying a major advancement in their bilateral relationship. These agreements, demonstrating extensive cooperation, cover a wide range of areas, including aviation, diplomacy, education, sports, social relations, industrial cooperation, and tourism.

Speaking to WealthPK, Mohammad Suleman, a research associate at the Trade Development Authority of Pakistan, said: “Pakistan and Tajikistan undoubtedly have a strategically important and economically lucrative relationship. In order to make bilateral trade and economic relations more effective, recently both sides agreed to continue to work on common areas of interest.” Suleman stated that Pakistan could increase the balance of trade and earn high foreign exchange by allowing the landlocked Central Asian countries to ship goods through sea routes, which the region lacks.

“Located in a land-locked but resource-rich region, Central Asian countries need better access to regional markets, including Pakistan, China, India, and the countries of West Asia. Pakistan has huge energy demands that can be met by growing trade with those countries because they are rich in energy resources,” he said. Speaking to WealthPK, Sara Rehman, Senior Executive Officer at the Federation of Pakistan Chambers of Commerce and Industry said Pakistan has been trying to establish trade and economic cooperation with Tajikistan. “The existing trade volume is below potential and can be increased by adding improved linkages and removing trade barriers.”

“The dismal performance of exports has been a persistent problem for Pakistan, which has adversely affected GDP growth and exports to GDP ratio. SEZs in Pakistan, under the CPEC framework, are key to encouraging foreign investment.” He suggested that Pakistan must leverage opportunities such as the proposed preferential trade agreement (PTA) with Tajikistan so as to maximise its potential gains. “It is high time that the reserves of mutual goodwill between the two countries are channeled into lucrative gains for Pakistan.”

Credit: INP-WealthPk