THAILAND and Pakistan are set to wrap up their bilateral free-trade agreement negotiations this year and the pact could be implemented next year.

After leading the Thai team for the third round of negotiations in Bangkok last week, Sunanta Kangvalkulkij, deputy director-general of the Trade Negotiations Department, said that Thailand and Pakistan had made big progress in the free-trade pact.

She said they had finalised the agreement on customs and trade facilitation and expected the remaining issues to be wrapped up by the end of this year.

She said the two sides had also made a lot of progress on a tax-reduction format, sanitary standards, and investment.

“If the pact is enforced, it should create greater benefits for both countries in terms of more trade and investment,” Sunanta said.

“Pakistan will not only be a potential market, but also a gateway for penetrating South and Central Asia.

“Pakistan could also be a source of raw materials, while Thailand could also be springboard for Pakistan to reach Asean markets.”

In another plus, she said more Thai investors should invest in Pakistan after Thai companies had already invested there.

Thai investors in Pakistan include Siam Cement, Thai Urethane Chemical Industrial, and CP Pakistan.

Thai goods expected to have a greater opportunity for export to Pakistan under an FTA include garments, leather goods, sport products, and chemical products.

Pakistan has FTAs with China, Malaysia, Indonesia, Sri Lanka and Mauritius. Besides Thailand, it is negotiating free-trade deals with Turkey and South Korea.

Last year, bilateral trade reached between Thailand and Pakistan reached US$1.03 billion (Bt46 billion), with Thailand exports to Pakistan worth $913.3 million, an increase of 4.4 per cent year-on-year. Pakistani imports to Thailand declined 14.6 per cent to $119.6 million.

Pakistan is Thailand’s second-largest trading partner in South Asia after India, and No 42 globally.