Acting Chairman of the Malaysia-Pakistan Business Council (MPBC), Usman Ahmad, pointed out that Malaysia can serve as a springboard for Pakistan to export its products into the broader ASEAN market, which will help improve the longstanding trade deficit between the two countries.
“Malaysia is serving as this year’s ASEAN chair, and this could be a turning point for Pakistan, providing favorable conditions for its businesses to enter Southeast Asia.”
He said this yesterday on the Bernama program “The Nation,” during an interview with host Nadia.
Last year, bilateral trade between Malaysia and Pakistan was USD 1.5 billion. Malaysia’s main exports to Pakistan included palm oil, chemicals, and electrical and electronic products, while major imports from Pakistan were rice, refined petroleum, and onions.
Usman mentioned that Pakistan is currently only a “Sectoral Dialogue Partner” of ASEAN, not a full dialogue partner, and therefore cannot export products to this lucrative regional market.
He said that since 1993, Pakistan has been a sectoral dialogue partner of ASEAN, but is now actively seeking to upgrade to a “Comprehensive Dialogue Partner” to show its commitment to deepening regional cooperation and expanding ties with ASEAN.
However, he said that using Malaysia as a channel would create a huge opportunity for Pakistan to access the Southeast Asian market, and the country’s government is seriously studying this approach.
He said that a prerequisite for implementing this strategy is the establishment of a Malaysia-Pakistan Joint Chamber of Commerce recognized by both countries, and the MPBC is actively pushing for the creation of such a chamber as the next step to promote matchmaking, streamline bilateral trade and investment initiatives, and expand cooperation with ASEAN.
Usman, who is also the CEO of Gamalux Oils Ltd., said that Pakistan’s Ministry of Commerce is actively handling this matter and hopes to make some tangible progress.
He emphasized that chambers of commerce and business councils like MPBC play an important role in promoting legislation favorable to trade and business, since intergovernmental agreements usually map out the next 10 to 20 years, whereas business needs are much more urgent.
He believes that since diplomatic ties were established in 1957, Malaysia and Pakistan should also adopt innovative ways to further strengthen trade, investment and economic cooperation. Potential areas for collaboration include halal trade and two-way tourism.
According to the annual review of the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA), both countries still face challenges in strengthening economic cooperation. The biggest issue for Pakistan is the persistent trade deficit in favor of Malaysia.
As an ASEAN member, Malaysia has strong trade relations and economic agreements with other ASEAN countries, as well as with China, India and others.
“For Pakistani exporters, it’s not easy to bypass these existing trade relationships to benefit from the MPCEPA, especially when markets like North America also demand attention.”
In addition, Usman believes that both the public and private sectors of the two countries must break from convention to enhance cooperation, and that governments play an important role in promoting favorable trade policies, particularly since both countries are Commonwealth members and have predominantly Muslim populations.
He stated that the two countries still face challenges in promoting trade cooperation, such as cumbersome bureaucratic procedures and non-tariff barriers. Therefore, the establishment of a Malaysia-Pakistan Joint Chamber of Commerce will not only help simplify trade and investment processes, but also ensure joint participation from both governments and the private sector.
Currently, the MPBC is registered in Malaysia but not yet in Pakistan, and is currently the only trade body promoting bilateral cooperation.