PAKISTAN – KOREA AVENUES FOR ECONOMIC COOPERATION DR MUHAMMAD ATHER ELAHI IBA KARACHI

CONTENTS Motivation for economic cooperation Economic and industrial structure Potentials & opportunities Avenues for economic cooperation Short term Medium term & long term Gains from Trade

MOTIVATION FOR ECONOMIC COOPERATION Political Motives Job Creation – provision of public goods Respond to “unfair” movement of goods and services Gain political influence and promote harmonization Economic Motives Promote competition for the domestic industries and discourage rent-seeking attitude Rise in consumer surplus w.r.t lower prices and wider choices Cultural Motives Globalization  increased similarities in tastes and preferences

ECONOMIC AND INDUSTRIAL STRUCTURE Geo-strategic location: Southern Asia, bordering the Arabian Sea, between India on the east and Iran and Afghanistan on the west and China in the north Population: 196,174,380 (July 2014 est.) World rank – 7 th Age Structure: 0-14 years: 33.3% (male 33,595,949/female 31,797,766) years: 21.5% (male 21,803,617/female 20,463,184) years: 35.7% (male 36,390,119/female 33,632,395) years: 5.1% (male 5,008,681/female 5,041,434) 65 years and over: 4.3% (male 3,951,190/female 4,490,045) (2014 est.) GDP (PPP basis): $574.1 billion (2013 estd) World rank – 27 th GDP Composition: Agri (25.3%) Industry (21.6%) services (53.1%) Labor Force: mn (Agri 45.1%, industry 20.7%, services 34.2%) Exports: textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs Imports: petroleum, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea Source: CIA Factbook

POTENTIALS & OPPORTUNITIES Agriculture Energy (Conventional & Alternative) Infrastructure (dams, bridges, motorways, power & water supply) IT & Telecom (young, competitive labor with high IT skills) Textile Retail Automotive Financial services Pharmaceuticals Mining & gems Tourism Attractive investment policies for FDI

TRADE POTENTIAL IN RICE (HS ) IN USD 1000

TRADE POTENTIAL IN ARTICLES OF JEWELLERY (HS ) IN USD 1000

TRADE POTENTIAL IN COTTON YARN (HS ) IN USD 1000

Trade Potential in Kitchen Linen etc (HS ) in USD 1000

Trade Potential in Mens/Boys trousers & Shirt (HS ) in USD 1000

Trade Potential in Petroleum oils and preparations (HS ) in USD 1000

Trade Potential in Automobiles, piston engine etc (HS ) in USD 1000

Trade Potential in Optical devices. Appliances etc(HS ) in USD 1000

Trade Potential in cargo vessels etc (HS ) in USD 1000

AVENUES FOR ECONOMIC COOPERATION Bilateral cooperation in business, energy, infrastructure, and trade in goods and services. Short term Create awareness (seminars, forums) Improving b2b connections (visa, communications, telecom, flight connections) Medium & long term Infrastructure development FTA

GAINS FROM TRADE Pakistan also share benefits from trade as revealed by comparative advantage though balance of trade remain in favor of South Korea Intra-industry trade and value added chain in the region Regional investment would increase as the result of bilateral trade Future is in Asia – lets start believing it !

THANK YOU!