Pakistan–ASEAN trade reaches $11.5bn but deficit widens in 2025

Pakistan’s trade volume with the Association of Southeast Asian Nations (ASEAN) reached $11.5 billion in 2024, but officials say the figure remains below potential, with the trade deficit continuing to widen in favour of ASEAN members in 2025.

Pakistan exported around $3.5 billion worth of goods to ASEAN countries last year, while imports totalled about $8 billion. Trade is largely concentrated in five economies — Indonesia, Malaysia, Thailand, Vietnam and the Philippines.

To strengthen economic ties and reduce the deficit, Islamabad is pursuing multiple trade frameworks, including a Free Trade Agreement (FTA) with Malaysia, a Preferential Trade Agreement (PTA) with Indonesia, and ongoing FTA and PTA talks with Thailand and Vietnam. Officials are also pushing for technology transfer, value addition and greater ASEAN investment in Special Economic Zones (SEZs) under CPEC.

They say Pakistan’s geographic position allows it to serve as a bridge connecting ASEAN to Central Asia, Western China, the Middle East and the Indian Ocean, adding that regulatory and infrastructure improvements are aimed at making Pakistan a competitive production base for ASEAN firms.

Exports to ASEAN in 2025 continue to be dominated by textiles — accounting for about 68% — including non-knit men’s and women’s suits and knit sweaters, along with rice, seafood, house linens, leather goods, cotton and agricultural items such as pulses and tree nuts.

Indonesia, Malaysia and the Philippines recorded the fastest growth in imports from Pakistan in 2025. Malaysia’s purchases of textiles, rice and leather goods increased under the existing FTA, while Indonesia continued expanding imports under the 2012 PTA. The Philippines also saw stronger demand for textiles and agricultural products, while Thailand and Vietnam posted moderate growth.

Officials say the overall rise in trade is driven by bilateral agreements, diversification efforts and improvements in connectivity and value-added production in sectors such as IT, textiles and food processing.