As the global economic structure continues to shift rapidly, the relationship between the Association of Southeast Asian Nations (ASEAN) and Pakistan is entering a new phase. Recent diplomatic and economic developments show that Pakistan is proactively expanding cooperation with ASEAN member countries, a strategic direction to diversify markets, reduce dependence on traditional partners, and promote deeper integration into regional trade networks.

A New Strategic Signal in Trade Policy

According to Daily Times, Iftikhar Ali Malik, former President of the South Asian Association for Regional Cooperation (SAARC) Chamber of Commerce and Industry, has called on the Government of Pakistan to strengthen economic cooperation with ASEAN — “a dynamic region with immense trade and investment potential.” He emphasized that Pakistan needs to look more toward the East, considering ASEAN as “a new growth engine for Asia.”

According to the Institute of Strategic Studies Pakistan, Pakistan–ASEAN trade currently stands at around USD 10.3 billion as of 2024, with Malaysia, Thailand, Vietnam, Indonesia, and the Philippines as the main partners. However, tariff barriers, logistics challenges, and infrastructure constraints have kept cooperation modest compared to its potential.

Experts note that Pakistan’s pursuit of new integration pathways with ASEAN aims not only to diversify trade partnerships but also to reduce reliance on traditional markets such as China and the United States, amid intensifying regional strategic competition.

ASEAN has also shown interest in Pakistan as a new transit hub linking South Asia and the Middle East. Analysts from Bernama and The Nation Thailand suggest that, as ASEAN strengthens supply chain cooperation and seeks new raw material sources for manufacturing, expanding economic relations with Pakistan is a natural step — both to diversify partnerships and to tap into a market of nearly 250 million people.

Vietnam: A Bridge in ASEAN–Pakistan Cooperation

Notably, Vietnam is emerging as an important bridge promoting ASEAN–Pakistan cooperation. On 14 October 2025, in Pakistan, Vietnam’s Minister of Industry and Trade Nguyễn Hồng Diên and Pakistan’s Minister of Commerce Jam Kamal Khan officially launched negotiations on a Vietnam–Pakistan Preferential Trade Agreement (VPPTA). The agreement aims to reduce tariffs, remove technical barriers, and create a favorable legal framework to increase bilateral trade by five to ten times within the next few years.

Currently, Vietnam–Pakistan bilateral trade stands at about USD 850 million in 2024, mainly consisting of textiles, seafood, agricultural products, pharmaceuticals, and construction materials. The two sides have identified Halal food, renewable energy, logistics, and industrial manufacturing as promising areas for cooperation, and have committed to promoting investment in Pakistan’s special economic zones.

This initiative not only opens up bilateral prospects but also carries regional significance: Vietnam is becoming a bridge promoting ASEAN’s economic presence in South Asia, while Pakistan sees Vietnam as an entry point to penetrate more deeply into the ASEAN market. If the negotiation process is advanced in the right direction, both Vietnam and Pakistan will benefit — while ASEAN’s economic influence in South Asia will expand, reinforcing its role as a dynamic trading hub connecting the two major economic arcs of Eurasia.

Toward Substantive and Sustainable Cooperation

In the coming time, for ASEAN–Pakistan relations to develop substantively, both sides need to enhance information exchange and address institutional, technical, and transport connectivity barriers. Pakistan must improve its investment environment, logistics infrastructure, and Halal certification system, while increasing policy transparency. For its part, ASEAN should establish more flexible mechanisms for South Asian partners, encourage business–government dialogue, and promote regional institutional linkages.

Building upon the Vietnam–Pakistan trade agreement, ASEAN could consider developing an ASEAN–Pakistan Economic Cooperation Framework to create a legal foundation for strengthening and expanding long-term economic cooperation between the two sides in the coming years.

Source: Compiled by the Multilateral Trade Policy Department, Ministry of Industry and Trade of Viet Nam