The United Business Group (UBG) today called on the Pakistani government to prioritize South America as a vital yet underutilized trade destination.
UBG President Zubair Tufail, along with former FPCCI Senior Vice President Syed Mazhar Ali Nasir, UBG Spokesperson Gulzar Feroz, and UBG Core Committee Member Malik Khuda Bakhsh, in a statement expressed concerns over Pakistan’s failure to fully engage with this substantial market of over 428 million consumers, boasting an average per capita income of nearly USD 9,600.
Despite cultural commonalities with nations like Argentina, Brazil, and Chile, economic ties remain weak due to insufficient information exchange, limited business connections, and inadequate interpersonal engagements.
The UBG officials pointed to a 2006 Framework Agreement on Trade with the South American trade bloc Mercosur, intended to pave the way for a Preferential Trade Agreement, which has seen little tangible progress. They also lamented the underutilization of the Global System of Trade Preferences (GSTP), a platform shared by Pakistan and several South American countries.
Pakistan’s current exports to South America represent a mere 0.6 percent of its total, while imports comprise 1.6 percent. The UBG advocates for activating trade missions in key South American nations, establishing product display centers within Pakistani embassies, and organizing factfinding missions and trade delegations, highlighting the absence of such delegations in the past.
Tufail emphasized the regional demand for Pakistani staples like rice, textiles, and surgical instruments. He underscored Argentina”s significance as an entry point to other South American economies, urging stronger trade relationships. He further highlighted the burgeoning South American halal market, estimated at over USD 100 million, presenting a significant opportunity for Pakistan”s established halal industry. The UBG is pushing for decisive policy actions to capitalize on this emerging sector.