Indonesia, Pakistan, Thailand Advance Free Trade Agreement Negotiations

Pakistan is strengthening economic ties with Southeast Asian countries through negotiations on Free Trade Agreements (FTAs) and expanded cooperation in multiple sectors. Pakistan and Thailand reaffirmed their commitment to boost trade under a proposed FTA, focusing on IT, services, and the Halal food industry, while also seeking to institutionalize parliamentary cooperation to enhance bilateral relations. Meanwhile, Pakistan and Indonesia's bilateral trade surged to $4.7 billion in 2024, with ongoing FTA talks aimed at further market access and cooperation in areas such as electric vehicle battery production, leveraging Indonesia’s nickel reserves. Indonesia, as Southeast Asia’s largest economy, is a key partner for Pakistan, which exports processed foods and IT services, while importing palm oil and electronics. Separately, Indonesia is set to sign an FTA with the Eurasian Economic Union (EAEU) by the end of 2025, opening new avenues for trade and investment involving Russia and other member states, particularly in energy and infrastructure projects. These developments highlight a broader effort by Pakistan and Indonesia to deepen economic integration within the ASEAN region and beyond, with Indonesia positioned as a strategic gateway for Pakistan's expanded engagement in Southeast Asia.