Manila, 07 Oct.2026 (APP)

Pakistan and the Philippines are preparing to begin preliminary discussions next month on a proposed Preferential Trade Agreement (PTA), a move expected to open new opportunities for trade, investment and broader economic cooperation between the two countries.

Speaking in an interview with APP at the Pakistan Embassy in Manila, Pakistan’s Ambassador to the Philippines Dr Asma Rabbani said the proposed agreement could help diversify bilateral trade, rationalise tariffs and tap into the significant economic potential that remains largely unexplored.

She said Pakistan and the Philippines had considerable scope to expand commercial relations by encouraging greater private-sector engagement and connecting businesses with bilateral and international supply chains. Both sides have already agreed to undertake feasibility studies and establish a technical working group to examine the PTA, with an objective of raising annual bilateral trade to around $500 million.

The ambassador noted that the 2nd Pakistan-Philippines Joint Economic Commission (JEC), held in Manila in February 2026, had revived formal economic dialogue after an eight-year gap. Discussions covered several areas, particularly rice, halal products and trade facilitation.

According to Dr Rabbani, Pakistani rice exports to the Philippines recorded remarkable growth of around 700 percent over the past year. Pakistan is now seeking greater market access and an increased import quota, which could provide additional opportunities for Pakistani exporters to expand into the wider ASEAN market.

Bilateral trade currently stands at around $200 million annually, which the ambassador said remained considerably below the actual potential of the two economies.

She identified pharmaceuticals, surgical instruments, agriculture, food products, textiles, banking and financial services, information technology, the digital economy and tourism as key areas for future cooperation. Pakistani surgical instruments, particularly those produced in Sialkot, are already gaining a stronger foothold in the Philippine market.

Dr Rabbani also stressed the importance of closer business-to-business engagement, saying greater interaction between private sectors could help identify new opportunities and build sustainable commercial partnerships. Agriculture and food processing, she added, offered room for technology transfer, knowledge-sharing and value addition.

IT and digital services were highlighted as particularly promising sectors, with stronger cooperation potentially helping companies from both countries connect with emerging global markets and supply chains.

The ambassador also called for easier visa procedures to encourage business travel, tourism and people-to-people contacts. She noted that Pakistan had introduced visa-free, cost-free entry arrangements for Philippine citizens and hoped similar facilitation would be extended to Pakistani travellers.

With its tourism attractions, including the northern areas and scenic landscapes, Pakistan could offer new experiences for Philippine visitors.

Dr Rabbani said stronger economic engagement with the Philippines could also position Pakistan as a gateway to the wider ASEAN market. She expressed confidence that the proposed PTA, coupled with greater investment and private-sector partnerships, could usher in a new and more diversified phase in Pakistan-Philippines economic relations.