No Muslim country has signed a Free or Preferential Trade Agreement with Pakistan during the last five years, the National Assembly heard on Monday, reported “ Nation”. Federal Minister for Commerce Khurram Dastgir said there had been no new trade agreements with an Islamic country since deals were struck with Malaysia and Indonesia in 2007. Pakistan had been facing trade deficit with Indonesia even before signing the PTA and it still persists. Heavy palm oil import was the major reason for the deficit. In 2013-14, Pakistan imported 2. 2 million tons of palm oil amounting to $1. 9 billion.Of the total import of palm oil, 52 percent was imported from Indonesia. The minister said palm oil is raw material for cooking oil and other consumer items. Availability of palm oil at cheaper rates has resulted in lower cost of production and benefited consumers. To another question, the minister said that no trade agreement has been signed between Pakistan and Iran during last three years.However, Pakistan signed the PTA with Iran in March 2004 and is operational since September 2006. At present only the EU has preferential agreements with Pakistan. Our exports to European Union increased more rapidly in 2014 than many regional competitors including Bangladesh, India and Vietnam. With a potential market for export diversification and enhancement of commodities such as, tea, paper, coal, spare parts, machinery, steel and chemical products, why is it that trade is limited to the EU? Do other Muslims states not trust trade relations with Pakistan? Is Pakistan not competitive enough to be given preferential access? Or is it simply, that we just do not try to expand further? One can look at lack of political will, cross-border disputes and mistrust being major factors hampering the development of trade among Muslim countries. Trade among Muslim states, according to the Islamic Development Bank, accounts for less than six per cent of the global trade. While North American states, East Asian states and the European states have successfully created trade blocs, Muslim states, abundant from the Levant to the Himalayas have missed out on a potentially powerful economic trade bloc in the last forty years. There is
vast potential amongst the Muslim countries to start trading. While our core exports are increasingly facing competition from Vietnam and Bangladesh in Europe, we need to discover more markets. It is time for local business and national planners to look beyond just oil and gas when it comes to trade with Muslim states.
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