ISLAMABAD: The Ministry of Commerce is finalising terms of references (TORs) for carrying out study to explore possibilities of free trade agreement (FTA) with South Korea.
Bilateral relations between Pakistan and South Korea relations refer to bilateral diplomatic relationship. Since the 1980s, the relations between two Asian countries have been improved and periodically enhanced. Both the countries have embassies at each others’ capital cities Islamabad and Seoul and both countries are also members of Friends of Democratic Pakistan (FoDP). Bilateral trade between the two countries is around $ 1.1 billion. Both sides have expressed interest to further promote the trade and investment relationship between the two countries.
A well-placed source at MoC told this scribe here on Tuesday that in April this year MoC signed a Memorandum of Understanding (MoU) with South Korean Ministry of Trade, Industry and Energy. Both sides agreed in the MOU to conduct study to explore the possibilities of Free trade agreement.
“MoC is in the process finalizing TORs of the study in this regard,” the source said, adding: “MoU also contained a proposal to form a Joint Trade Commission and Pakistani Commercial Counselor in Seoul had been asked to finalize the agenda of the first meeting of the JTC in consultations with Korean side.
The source said that Pakistan‘s major exports to Korea were fish and fish preparation, oil seed and oleaginous fruit, cotton yarn, cotton fabrics (woven), petroleum, ethyl alcohol, chemical elements and compounds, leather and medical/ surgical instruments.
“77.5% of our exports comprise raw materials like Naphtha, Unrefined copper, Indentured Ethyl Alcohol and cotton yarn,” the source observed adding that Pakistan‘s major imports from Korea were Iron and steel manufacturing machinery and it parts, vaccines for human medicine, chemical material and products, polyesters, dying tanning and coloring matters.
“In June this year, the source said that then Korean Ambassador to Islamabad while speaking at a meeting with Chief Minister Punjab had said that Korea wanted to promote trade and economic ties with Pakistan, therefore volume of trade between the two countries should be further increased as well as Korean companies want to make investment in Pakistan especially in Pakistan.
Similarly, the source added that In April this year, on the occasion of signing MoU between both the countries, Prime Minister Nawaz Sharif proposed inking a free trade agreement (FTA), with an aim aims to boost trade between the two countries beyond the 2012 level of $1.6 billion, to then visiting South Korean Premier Chung Hongwon at a meeting here in the federal capital in Islamabad.
“At that time South Korean Premier also reciprocated and said that Pakistan and Korea should expand their trade, economy and energy sectors and enhance bilateral relations by increasing personnel exchanges in the private sector,” the source maintained.
