Pakistan-ASEAN Trade Hits $11.5bn Amid Rising Deficit
Pakistan’s trade with the Association of Southeast Asian Nations (ASEAN) reached $11.5 billion in 2024, highlighting growing economic engagement yet persistent challenges. Despite steady interactions, the trade deficit in 2025 continues to favor ASEAN economies, with Pakistan exporting $3.5 billion and importing around $8 billion. Trade is concentrated primarily in five ASEAN countries: Indonesia, Malaysia, Thailand, Vietnam, and the Philippines.
P.c. Pakistan Today
To address the imbalance, Pakistan is actively pursuing trade frameworks, including a Free Trade Agreement (FTA) with Malaysia, a Preferential Trade Agreement (PTA) with Indonesia, and ongoing negotiations for an FTA with Thailand and a PTA with Vietnam. Initiatives also focus on technology transfer, value addition, and boosting ASEAN investments in Special Economic Zones under CPEC, aiming to make Pakistan a competitive production base for regional companies.
Exports to ASEAN in 2025 are largely textiles, including non-knit suits and knit sweaters, alongside rice, seafood, leather goods, house linens, cotton, pulses, and tree nuts. Textiles alone account for approximately 68% of exports, reflecting strong market demand. Among ASEAN countries, Indonesia, Malaysia, and the Philippines recorded the fastest growth in imports from Pakistan. Malaysia’s demand increased under the FTA, Indonesia continued implementing its 2012 PTA, and the Philippines saw substantial growth in textiles and agricultural products. Thailand and Vietnam experienced moderate import increases.
The overall trade rise is supported by bilateral agreements, diversification strategies, and enhanced connectivity, particularly in value-added sectors such as information technology, textiles, and food products. FPCCI President Atif Ikram noted that ASEAN economies present significant potential for engaging Pakistan’s 250-million-strong market, underscoring long-term opportunities for balanced trade growth.