UK Ponders Free Trade Agreement with Pakistan to Boost Bilateral Trade

The United Kingdom may soon sign a Free Trade Agreement (FTA) with Pakistan, a move that could significantly boost bilateral trade between the two nations. According to Jane Marriott, the UK High Commissioner to Pakistan, the current trade between the two countries is "outdated and at the lowest ebb," with the UK receiving £4.1 billion worth of goods from Pakistan, mostly under tariff reductions.

Marriott's statement comes as the two countries seek to increase trade volumes, which are currently deemed low. Interestingly, she pointed to India, with whom the UK is negotiating a similar FTA, citing its large market and population of 1.4 billion as a prime example. The UK has also maintained its close relationship with the European Union, which it exited last year, further emphasizing the need for expanded trade agreements. Meanwhile, Pakistan is awaiting UK approval of its demand for a £1.2 billion loan package, contingent on International Monetary Fund-mandated reforms, including governance and fiscal discipline improvements.

The UK High Commissioner also touched upon the importance of Pakistan's stability and security, calling for economic reforms and governance improvements. Noting the significance of addressing Indigenous Talent sector issues and devising effective solutions, Marriott approached such matters with a sense of concern. While refusing to comment on the ongoing case against a former prime minister, she highlighted the importance of a fair and transparent legal process.

In a significant departure from the UK's policy of staying out of regional affairs, Marriott expressed support for the China-Pakistan Economic Corridor (CPEC), regardless of not being involved in the project. Reiterating that the UK government is not against CPEC, she desired for the project's dividends to positively impact millions of Pakistani people, locating value and importance in Pakistan's stability and economic success.

Furthermore, Marriot stressed the role of accountability, transparency, and inclusive democracy as crucial elements for Pakistan's future. By emphasizing the importance of these values, Marriott signified that the UK's vision goes beyond immediate economic interests, driving towards the end goal of a more potent Pakistan that has a strong economy and effective governance system.