Pakistani diasporas in the UK send money to Pakistan each month apart from trade collaboration between the nations. The Cooperation Agreement between the EU and Pakistan, which was signed in 2004, governs bilateral trade relations between the two countries. The EU-Pakistan 5-year Engagement Plan, which began in 2012, includes enhancing bilateral commerce and investment.
Pakistan has reaped the benefits of the EU’s Generalised Scheme of Preferences in terms of trade (GSP). Pakistan has benefited from extensive tariff preferences (mainly zero taxes on two-thirds of all product categories) under the so-called GSP+ arrangement, which aims to assist sustainable development and good governance, beginning on January 1, 2014.
How Can Pakistan Boost Trade With the United Kingdom To Increase Foreign Reserves Of The Country?
Pakistan’s marketplaces have already shown a lot of room for capacity growth in the manufacturing, workforce, and service sectors. In industries such as logistics and transportation, construction, higher education, agricultural technology, and renewable energy, there is a considerable demand for standardization and quality control, research collaboration, and training. UK industries are well-positioned to take advantage of these opportunities. Online money transfers to Pakistan from the UK by expatriates are also significant and can be enhanced.
Several new and established sectors in Pakistan are unexplored areas that provide attractive potential for British enterprises. Pakistan has prospects in e-commerce automation, including payment systems, logistics, and training, as a fast-growing internet and eCommerce sector. Infrastructure development, transportation, especially road freight and temperature-controlled logistics, urban transit, renewable energy, agricultural technologies, health, education, and textile and apparel are all significant sectors with trade and investment prospects in Pakistan (given its GSP plus status).
How Does Pakistani Diaspora Help In Sustainability Of Pakistan’s Economy?
Workers send money to Pakistan online, and the money is Pakistan’s single largest source of foreign money, surpassing exports. By bridging the balance of payments in the face of diminished dollar flows from other sources, they provide critical support to currency and forex reserves. The increased remittance flow has so far aided the current account, which has produced a $959 million surplus, implying some external-sector stability.
Money transfers to Pakistan from abroad hit an all-time high of $2.8 billion in April, up 56 percent from the previous year. The 10-month total also outperformed estimates and the full-year total from the last fiscal year by more than $1 billion. , the European Union continues to be Pakistan’s most significant source of remittances, followed by the USA, the United Kingdom, and Australia. Pakistan is currently ranked sixth among the top ten recipient countries of remittances from workers around the world and is expected to rise at least one spot by the end of the year.