Trade disruption is impending; a reframing of trade policy is needed in South Asia
Islamabad – 3 February 2026 (MT Team) : Trade has been used as a tool for economic protectionism globally. The competitive pressures in trade not only overlap but highlight South Asia’s enduring trade paradox, i.e., irregular regional trade and contesting regional integration. In an event organized by the Institute of Regional Studies (IRS), titled “FTA Strategy in Key South Asian Countries: Implications for Pakistan”, Ambassador Jauhar Saleem emphasized Pakistan’s vigilant policies to create a stable trade environment through partnerships with friendly countries and key initiatives for investment and market expansion.
Dr. Ishrat Husain, former Advisor to the Prime Minister on Institutional Reforms and Austerity, in his Keynote address, emphasized that Asia benefited from globalization compared to the US and Western countries. Despite US tariffs, China and other Asian countries gained economic stimulus. Dr. Ishrat stressed that Pakistan needs to emerge from an inward-looking economic approach.
Dr. Nadeem ul Haque, former Vice Chancellor of Pakistan Institute of Development Economics (PIDE), stressed on diversifying exports and overcoming over-regulation to create a favorable business environment amid rising regional trade competition, exposing asymmetrical trade capacities between Pakistan and India.
Amid the signing of the Free Trade Agreement (FTA) between India and the EU, Sri Lankan Security and geopolitical expert, Asanga Abeyagoonasekera highlighted that trade agreements are intertwined with strategic goals. The agreement would disrupt trade. For South Asia to reclaim trade and economic security, it is important to convert its monopolies into assets.
Shakeel Ahmad Ramay, CEO of the Asian Institute of Eco-civilization Research and Development (AIRED), suggested establishing large-scale companies pertinent to development. He pointed out that certain domestic structural barriers are preventing trade opportunities. Therefore, the broadening of trading partners is crucial as the economic structures grow. Pakistan should be prudent in weighing FTA opportunities.
