Global trade fragmentation creates opportunities for Pakistan, says Aurangzeb

Finance Minister Muhammad Aurangzeb has highlighted opportunities for Pakistan to expand its trade with regional economic blocs as global trade fragmentation intensifies. During a recent interview with Channel News Asia, Aurangzeb expressed his intention to meet with the Thai finance minister, indicating Pakistan's interest in exploring new markets beyond its established trading partners.

He noted the country's significant trade relationships with the US and the EU, but emphasized that Pakistan is now keen on expanding its economic engagements to regional blocks such as the Gulf Cooperation Council, Central Asian republics, and ASEAN, where he sees substantial potential for mutually beneficial trade.

Aurangzeb emphasized that Pakistan is strategically shifting its economic partnerships from aid to trade and investment, a move that extends to key allies like China and the United States. He described Pakistan’s approach toward these nations as an "and-and" strategy, indicating close collaboration with both countries. China's participation in the China-Pakistan Economic Corridor (CPEC) is progressing, with the second phase focusing on monetising infrastructure through business-to-business cooperation and joint ventures.

Aurangzeb also highlighted the importance of remittance flows from Gulf countries, which reached $41.6 billion last year and are projected to increase to $44 billion this year. His comments underscore Pakistan's proactive stance in diversifying its economic partnerships amid geopolitical shifts and evolving global trade dynamics.