Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 339 Thu. May 12, 2005  
   
Business


Pakistan mulls FTA with S’pore


Pakistan intends to broker a "comprehensive" free trade agreement (FTA) with Singapore as part of its drive for closer economic ties with Southeast Asia, Prime Minister Shaukat Aziz said here Wednesday.

"We want to integrate more with this part of the world," Aziz told reporters, a day after agreeing with Singapore Prime Minister Lee Hsien Loong for their two nations to start talks next month on an FTA.

Aziz was speaking to the media in Singapore on the last leg of a Southeast Asian tour that has also taken him to Thailand, Malaysia and Brunei.

Aziz kickstarted similar FTA negotiations with Thailand and Malaysia during his trip, which he has characterised as important in helping Pakistan's "East Asia" economic push.

"On this trip, Singapore, Malaysia and Thailand all want to do comprehensive FTAs with Pakistan and Pakistan wants them too," he said.

"We think this is a very good linkage and a means to differentiate ourselves (economically from other countries)."

On the Singapore-Pakistan agreement, Aziz said he and Lee agreed "it will be a very comprehensive FTA covering the whole menu of interactions between the two countries".

Singapore's trade with Pakistan totalled just 1.02 billion US dollars last year, which Lee described in a speech on Tuesday evening as "modest" compared with the city-state's economic links with other South Asian countries.

Lee noted in his speech that Singapore was already concluding an FTA with India and had begun exploratory talks with Sri Lanka, but had not yet made any progress with Pakistan.

"But I am glad that we are rectifying this," Lee said.

"We should make this an ambitious and meaningful FTA that will pave the way for stronger economic linkages between our countries."

Aziz said in Bangkok on May 9 that the proposed bilateral FTA with Thailand could generate one billion dollars in trade between the two nations and hailed the agreement to start talks as a "very significant development".